Head to Head Analysis: Glacier Bancorp (NASDAQ:GBCI) versus Bancorpsouth Bank (NASDAQ:BXS)

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Bancorpsouth Bank (NYSE:BXS) and Glacier Bancorp (NASDAQ:GBCI) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Institutional & Insider Ownership

65.2% of Bancorpsouth Bank shares are held by institutional investors. Comparatively, 77.4% of Glacier Bancorp shares are held by institutional investors. 2.6% of Bancorpsouth Bank shares are held by company insiders. Comparatively, 0.6% of Glacier Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Bancorpsouth Bank and Glacier Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bancorpsouth Bank $935.53 million 3.00 $221.32 million $2.23 12.71
Glacier Bancorp $587.82 million 5.91 $181.88 million $2.17 18.47

Bancorpsouth Bank has higher revenue and earnings than Glacier Bancorp. Bancorpsouth Bank is trading at a lower price-to-earnings ratio than Glacier Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Bancorpsouth Bank and Glacier Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bancorpsouth Bank 0 4 0 0 2.00
Glacier Bancorp 0 3 1 0 2.25

Bancorpsouth Bank presently has a consensus target price of $32.00, indicating a potential upside of 12.87%. Glacier Bancorp has a consensus target price of $43.75, indicating a potential upside of 9.18%. Given Bancorpsouth Bank’s higher probable upside, equities analysts clearly believe Bancorpsouth Bank is more favorable than Glacier Bancorp.

Volatility & Risk

Bancorpsouth Bank has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Glacier Bancorp has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Dividends

Bancorpsouth Bank pays an annual dividend of $0.68 per share and has a dividend yield of 2.4%. Glacier Bancorp pays an annual dividend of $1.04 per share and has a dividend yield of 2.6%. Bancorpsouth Bank pays out 30.5% of its earnings in the form of a dividend. Glacier Bancorp pays out 47.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bancorpsouth Bank has increased its dividend for 6 consecutive years and Glacier Bancorp has increased its dividend for 7 consecutive years. Glacier Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Bancorpsouth Bank and Glacier Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bancorpsouth Bank 23.10% 10.34% 1.26%
Glacier Bancorp 31.38% 12.83% 1.61%

Summary

Glacier Bancorp beats Bancorpsouth Bank on 10 of the 17 factors compared between the two stocks.

About Bancorpsouth Bank

BancorpSouth Bank provides commercial banking and financial services to individuals and small-to-medium size businesses. It offers various deposit products, including interest and noninterest bearing demand deposits, and saving and other time deposits. The company also provides commercial loans, including term loans, lines of credit, equipment and receivable financing, and agricultural loans; a range of short-to-medium term secured and unsecured commercial loans to businesses for working capital, business expansion, and the purchase of equipment and machinery; and construction loans to real estate developers for the acquisition, development, and construction of residential subdivisions. In addition, it offers fixed and adjustable rate residential mortgage loans secured by owner-occupied property; residential construction loans; second mortgage loans; and home equity lines of credit, as well as non-residential consumer loans that consist of automobile, recreation vehicle, boat, personal, and deposit account secured loans, as well as issues credit cards. Further, the company operates as an agent for the sale of commercial lines of insurance; and a line of property and casualty, life, health, and employee benefits products and services. Additionally, it provides investment brokerage, and personal trust and estate services. As of April 25, 2018, the company operated through 279 full service branch locations, as well mortgage, insurance, and loan production offices in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee, Texas, and Illinois. The company was formerly known as BancorpSouth, Inc. and changed its name to BancorpSouth Bank in October 2017. BancorpSouth Bank was founded in 1876 and is headquartered in Tupelo, Mississippi.

About Glacier Bancorp

Glacier Bancorp, Inc. operates as the holding company for Glacier Bank that provides commercial banking services to individuals, small to medium-sized businesses, community organizations, and public entities in the United States. It offers non-interest bearing deposit and interest bearing deposit accounts, such as negotiable order of withdrawal and demand deposit accounts, savings accounts, money market deposit accounts, fixed rate certificates of deposits, negotiated-rate jumbo certificates, and individual retirement accounts. The company also provides construction and permanent loans on residential real estate; consumer land or lot acquisition loans; unimproved land and land development loans; and residential builder guidance lines comprising pre-sold and spec-home construction, and lot acquisition loans. In addition, it offers commercial real estate loans to purchase, construct, and finance commercial real estate properties; consumer loans secured by real estate, automobiles, or other assets; second mortgage loans; municipal loans; home equity loans consisting of 1-4 family junior lien mortgages, and first and junior lien lines of credit secured by residential real estate; and agriculture loans. Further, the company provides mortgage origination services. It has 167 locations, including 149 branches and 18 loan or administration offices in 63 counties within 7 states comprising Montana, Idaho, Utah, Washington, Wyoming, Colorado, and Arizona. The company was incorporated in 2004 and is headquartered in Kalispell, Montana.

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