Critical Survey: SR Bancorp (SRBK) & The Competition

SR Bancorp (NASDAQ:SRBK) is one of 41 public companies in the “Savings institutions, except federal” industry, but how does it compare to its competitors? We will compare SR Bancorp to related companies based on the strength of its institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Institutional & Insider Ownership

24.7% of SR Bancorp shares are held by institutional investors. Comparatively, 44.0% of shares of all “Savings institutions, except federal” companies are held by institutional investors. 3.6% of SR Bancorp shares are held by company insiders. Comparatively, 8.5% of shares of all “Savings institutions, except federal” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares SR Bancorp and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SR Bancorp	2.25%	0.50%	0.10%
SR Bancorp Competitors	8.23%	4.94%	0.57%

Earnings & Valuation

This table compares SR Bancorp and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
SR Bancorp	$38.38 million	-$10.86 million	90.92
SR Bancorp Competitors	$320.85 million	$15.55 million	-1.10

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for SR Bancorp and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SR Bancorp	0	0	0	0	N/A
SR Bancorp Competitors	120	585	369	5	2.24

As a group, “Savings institutions, except federal” companies have a potential upside of 3.10%. Given SR Bancorp’s competitors higher possible upside, analysts plainly believe SR Bancorp has less favorable growth aspects than its competitors.

Summary

SR Bancorp competitors beat SR Bancorp on 8 of the 9 factors compared.

About SR Bancorp

SR Bancorp, Inc. operates as the holding company for Somerset Regal Bank that provides customary retail and commercial banking services to individuals, businesses, and local municipalities in the communities of Somerset, Middlesex, Hunterdon, and Essex counties in New Jersey. It offers deposit instruments, including noninterest-bearing demand deposits, interest-bearing demand accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides loans comprising one- to four family-residential mortgage loans, home equity loans and lines of credit, unsecured personal loans, and rehabilitation loans; and bill payment services. In addition, it is involved in the investment activities. The company was founded in 1887 and is headquartered in Bound Brook, New Jersey.