Alerus Financial (NASDAQ:ALRS) versus ETFs (NYSE:ETFs) Critical Analysis
Alerus Financial (NASDAQ:ALRS – Get Rating) and FNB (NYSE:FNB – Get Rating) are both finance companies, but which is the best investment? We’ll compare the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
This table compares the net margins, return on equity and return on assets of Alerus Financial and ETFs.
|Net margins||Return on equity||return on assets|
Alerus Financial pays an annual dividend of $0.64 per share and has a dividend yield of 2.8%. ETF pays an annual dividend of $0.48 per share and has a dividend yield of 4.5%. Alerus Financial pays 23.8% of its profits as a dividend. The ETF pays out 43.6% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years.
Institutional and Insider Ownership
39.5% of Alerus Financial shares are held by institutional investors. Comparatively, 71.3% of the ETF’s shares are held by institutional investors. 6.9% of the shares of Alerus Financial are held by insiders of the company. By comparison, 0.9% of the ETF’s shares are held by company insiders. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock will outperform the market over the long term.
This is a summary of current ratings and target prices for Alerus Financial and ETFs, as reported by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
Alerus Financial currently has a consensus target price of $29.00, suggesting a potential upside of 26.03%. ETF has a consensus target price of $13.62, suggesting a potential upside of 28.71%. Given the stronger ETF consensus rating and higher likely upside, analysts clearly think ETFs are more favorable than Alerus Financial.
Volatility and risk
Alerus Financial has a beta of 0.75, which means its stock price is 25% less volatile than the S&P 500. Comparatively, ETF has a beta of 1.11, which means its price is 11% more volatile than the S&P 500.
Valuation and benefits
This table compares revenue, earnings per share (EPS), and valuation of Alerus Financial and ETFs.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Alerus Financial||$240.04 million||1.66||$52.68 million||$2.69||8.55|
|ETFs||$1.34 billion||2.79||$405.00 million||$1.10||9.62|
ETF has higher income and profit than Alerus Financial. Alerus Financial trades at a lower price-to-earnings ratio than ETFs, indicating that it is currently the more affordable of the two stocks.
ETF beats Alerus Financial on 11 out of 16 factors compared between the two stocks.
About Alerus Financial (Get a rating)
Alerus Financial Corporation, through its subsidiary, Alerus Financial, National Association, provides various financial services to businesses and consumers. The Company operates through four segments: Banking, Pension and Benefits, Wealth Management and Mortgages. It offers various deposit products, including demand deposits, interest-bearing transaction accounts, money market accounts, term and savings deposits, checking accounts and certificates of deposit; and cash management products, including electronic receivables management, remote deposit capture, vault services, merchant services and other cash management services. The Company also offers commercial loans, business term loans, lines of credit and commercial real estate loans, as well as loans for construction and land development; consumer credit products, including residential first mortgages; installment loans and lines of credit; and second mortgages. In addition, it offers pension plan administration and investment advisory services, employee stock ownership plan, trust services, payroll, health savings accounts and other employee benefits services. , as well as individual retirement accounts; and financial planning, investment management, personal and business trust, estate administration and custodial services. In addition, the Company provides debit and credit cards, online banking, mobile banking/wallet services, payments, private banking, payroll accounts, flexible spending accounts, mobile banking services. administration and government health insurance program. It offers banking services through fourteen offices in North Dakota, Minnesota and Arizona; and pension and benefit plans in 50 states through offices in Michigan, Minnesota and Colorado. The company was formerly known as First National Bank North Dakota and changed its name to Alerus Financial Corporation in 2000. Alerus Financial Corporation was founded in 1879 and is headquartered in Grand Forks, North Dakota.
About ETF (Get a rating)
FNB Corporation, a financial holding company, provides a range of financial services primarily to consumers, businesses, governments and small and medium-sized businesses. The Company operates through three segments: Community Banking, Wealth Management and Insurance. It offers commercial banking solutions, including corporate and small business banking, real estate finance, corporate credit, capital market and lease finance services. The Company also provides consumer banking products and services, such as deposit products, mortgage and consumer loan services, as well as mobile and online banking; and wealth management services including personal and corporate trust services including the administration of estates of deceased persons and trusts; securities brokerage and investment advisory services, mutual funds and annuities; and commercial and personal insurance and reinsurance products, as well as mezzanine financing options for small and medium-sized businesses. As of December 31, 2021, it operated 334 banking offices in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, DC and Virginia. FNB Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.
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