Financial Review: West Coast Bancorp (WCBO) versus IBERIABANK (IBKC)

West Coast Bancorp (NASDAQ: WCBO) and IBERIABANK (NASDAQ:IBKC) are both financials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Dividends

IBERIABANK pays an annual dividend of $1.48 per share and has a dividend yield of 1.9%. West Coast Bancorp does not pay a dividend. IBERIABANK pays out 42.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and price targets for West Coast Bancorp and IBERIABANK, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
West Coast Bancorp 0 0 0 0 N/A
IBERIABANK 0 3 8 0 2.73

IBERIABANK has a consensus target price of $89.30, suggesting a potential upside of 14.27%.

Profitability

This table compares West Coast Bancorp and IBERIABANK’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
West Coast Bancorp N/A N/A N/A
IBERIABANK 17.14% 6.57% 0.92%

Insider & Institutional Ownership

80.4% of IBERIABANK shares are held by institutional investors. 3.2% of IBERIABANK shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares West Coast Bancorp and IBERIABANK’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
West Coast Bancorp N/A N/A N/A $1.08 N/A
IBERIABANK $950.76 million 4.43 $186.77 million $3.52 22.20

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

Summary

IBERIABANK beats West Coast Bancorp on 9 of the 10 factors compared between the two stocks.

West Coast Bancorp Company Profile

West Coast Bancorp (Bancorp) is a bank holding company. Bancorp’s principal business activities are conducted through its full-service, commercial bank subsidiary, West Coast Bank (the Bank), an Oregon state-chartered bank. As of December 31, 2011, the Bank had facilities in 41 cities and towns in western Oregon and southwestern Washington, operating a total of 55 full-service and five limited-service branches and a Small Business Administration (SBA) lending office in Vancouver, Washington. Bancorp operates in two segments: West Coast Bank and West Coast Trust and parent company related operations. For consumer banking customers, the Bank offers a variety of checking and savings accounts, check cards, and competitive borrowing products.In April 2013, Columbia Banking System Inc announced the completion of acquisition of West Coast Bancorp, the parent company of West Coast Bank.

IBERIABANK Company Profile

IBERIABANK Corporation is a financial holding company. The Company is a holding company for IBERIABANK, a Louisiana state chartered banking corporation; Lenders Title Company, an Arkansas-chartered title insurance and closing services agency (Lenders Title); IBERIA Capital Partners LLC (ICP), a corporate finance services firm; 1887 Leasing, LLC, a holding company for its aircraft; IBERIA Asset Management, Inc. (IAM), which provides wealth management and trust advisory services to high net worth individuals, pension funds, corporations and trusts; 840 Denning, LLC, which invests in a commercial rental property, and IBERIA CDE, LLC (CDE), which invests in purchased tax credits. IBERIABANK offers commercial and retail banking products and services. These products and services include an array of commercial, consumer, mortgage, and private banking products and services, trust advisory services, cash management, deposit and annuity products.

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