Western Alliance Bancorporation (NYSE:WAL) & Byline Bancorp (NYSE:BY) Financial Contrast

Byline Bancorp (NYSE:BYGet Free Report) and Western Alliance Bancorporation (NYSE:WALGet Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Insider & Institutional Ownership

41.1% of Byline Bancorp shares are held by institutional investors. Comparatively, 72.0% of Western Alliance Bancorporation shares are held by institutional investors. 35.0% of Byline Bancorp shares are held by company insiders. Comparatively, 1.5% of Western Alliance Bancorporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Byline Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 1.8%. Western Alliance Bancorporation pays an annual dividend of $1.48 per share and has a dividend yield of 2.5%. Byline Bancorp pays out 13.5% of its earnings in the form of a dividend. Western Alliance Bancorporation pays out 22.6% 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. Western Alliance Bancorporation has raised its dividend for 3 consecutive years. Western Alliance Bancorporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Byline Bancorp has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Western Alliance Bancorporation has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.

Profitability

This table compares Byline Bancorp and Western Alliance Bancorporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Byline Bancorp 20.13% 13.85% 1.46%
Western Alliance Bancorporation 16.74% 16.65% 1.27%

Valuation & Earnings

This table compares Byline Bancorp and Western Alliance Bancorporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Byline Bancorp $535.79 million 1.67 $107.88 million $2.67 7.67
Western Alliance Bancorporation $4.32 billion 1.49 $722.40 million $6.54 9.01

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Byline Bancorp and Western Alliance Bancorporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Byline Bancorp 0 0 1 0 3.00
Western Alliance Bancorporation 0 3 12 0 2.80

Byline Bancorp currently has a consensus price target of $28.00, suggesting a potential upside of 36.72%. Western Alliance Bancorporation has a consensus price target of $60.56, suggesting a potential upside of 2.75%. Given Byline Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Byline Bancorp is more favorable than Western Alliance Bancorporation.

Summary

Western Alliance Bancorporation beats Byline Bancorp on 10 of the 17 factors compared between the two stocks.

About Byline Bancorp

(Get Free Report)

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits. The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services. In addition, it offers financing solutions for equipment vendors and their end users; syndication services; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.

About Western Alliance Bancorporation

(Get Free Report)

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. It operates through Commercial and Consumer Related segments. The company offers deposit products, including checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts; demand deposits; and treasury management and residential mortgage products and services. It also offers commercial and industrial loan products, such as working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company provides other financial services, such as internet banking, wire transfers, electronic bill payment and presentment, funds transfer and other digital payment offerings, lock box services, courier, and cash management services. Further, it holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low-income housing tax credits and small business investment corporations; and holds certain real estate loans and related securities. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.

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