Comparing ESSA Bancorp (ESSA) & Its Peers

ESSA Bancorp (NASDAQ: ESSA) is one of 35 public companies in the “Savings institutions, except federal” industry, but how does it compare to its rivals? We will compare ESSA Bancorp to similar companies based on the strength of its institutional ownership, earnings, analyst recommendations, dividends, risk, profitability and valuation.

Dividends

ESSA Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 3.0%. ESSA Bancorp pays out 34.5% of its earnings in the form of a dividend. As a group, “Savings institutions, except federal” companies pay a dividend yield of 2.2% and pay out 28.2% of their earnings in the form of a dividend. ESSA Bancorp has increased its dividend for 1 consecutive years.

Risk & Volatility

ESSA Bancorp has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, ESSA Bancorp’s rivals have a beta of 0.78, indicating that their average share price is 22% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for ESSA Bancorp and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ESSA Bancorp 0 1 0 0 2.00
ESSA Bancorp Competitors 108 415 244 12 2.21

ESSA Bancorp presently has a consensus target price of $15.00, indicating a potential downside of 7.81%. As a group, “Savings institutions, except federal” companies have a potential downside of 5.69%. Given ESSA Bancorp’s rivals stronger consensus rating and higher probable upside, analysts plainly believe ESSA Bancorp has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares ESSA Bancorp and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
ESSA Bancorp $77.33 million $14.42 million 11.71
ESSA Bancorp Competitors $146.26 million $14.78 million 17.89

ESSA Bancorp’s rivals have higher revenue and earnings than ESSA Bancorp. ESSA Bancorp is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

44.7% of ESSA Bancorp shares are held by institutional investors. Comparatively, 38.6% of shares of all “Savings institutions, except federal” companies are held by institutional investors. 7.6% of ESSA Bancorp shares are held by company insiders. Comparatively, 7.4% of shares of all “Savings institutions, except federal” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares ESSA Bancorp and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ESSA Bancorp 21.27% 8.27% 0.83%
ESSA Bancorp Competitors 17.07% 8.91% 0.95%

Summary

ESSA Bancorp rivals beat ESSA Bancorp on 11 of the 15 factors compared.

About ESSA Bancorp

ESSA Bancorp, Inc. operates as a bank holding company for ESSA Bank & Trust that provides a range of financial products and services to individuals, families, and businesses in Pennsylvania. The company accepts savings accounts, interest bearing demand accounts, checking accounts, money market accounts, club accounts, certificates of deposit and IRAs, and other qualified plan accounts, as well as commercial checking accounts. Its loan portfolio includes first mortgage loans for the purchase, construction, or refinancing of one- to four-family residential real estate property; commercial real estate loans; home equity loans and lines of credit; and commercial and consumer loans, as well as loans secured by deposits and personal unsecured loans. In addition, the company offers insurance benefits consulting services, such as health insurance, life insurance, short term and long term disability, dental, vision, 401(K) retirement planning, and individual health products, as well as asset management and trust, and investment services. As of September 30, 2020, it operated 22 full-service banking offices, including 7 offices in Monroe County, 3 offices in Lehigh County, 6 offices in Northampton County, 1 office in Lackawanna County, 1 office in Luzerne County, 1 office in Chester County, 2 offices in Delaware County, and 1 office in Montgomery County, Pennsylvania. The company was founded in 1916 and is based in Stroudsburg, Pennsylvania.

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