Reviewing Standard Chartered (OTCMKTS:SCBFF) and FS Bancorp (NASDAQ:FSBW)
by Mitch Edgeman · The Markets DailyFS Bancorp (NASDAQ:FSBW – Get Free Report) and Standard Chartered (OTCMKTS:SCBFF – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.
Dividends
FS Bancorp pays an annual dividend of $1.16 per share and has a dividend yield of 2.6%. Standard Chartered pays an annual dividend of $0.41 per share and has a dividend yield of 1.4%. FS Bancorp pays out 26.7% of its earnings in the form of a dividend. Standard Chartered pays out 19.5% 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. FS Bancorp has increased its dividend for 12 consecutive years. FS Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
FS Bancorp has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Standard Chartered has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.
Earnings & Valuation
This table compares FS Bancorp and Standard Chartered”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FS Bancorp | $219.52 million | 1.50 | $33.35 million | $4.34 | 10.24 |
| Standard Chartered | $39.53 billion | 1.71 | $5.08 billion | $2.10 | 14.15 |
Standard Chartered has higher revenue and earnings than FS Bancorp. FS Bancorp is trading at a lower price-to-earnings ratio than Standard Chartered, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares FS Bancorp and Standard Chartered’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FS Bancorp | 14.88% | 10.86% | 1.05% |
| Standard Chartered | 13.79% | 10.84% | 0.63% |
Analyst Recommendations
This is a breakdown of recent ratings for FS Bancorp and Standard Chartered, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FS Bancorp | 1 | 2 | 1 | 0 | 2.00 |
| Standard Chartered | 0 | 3 | 5 | 0 | 2.62 |
FS Bancorp currently has a consensus target price of $45.00, indicating a potential upside of 1.28%. Given FS Bancorp’s higher probable upside, analysts plainly believe FS Bancorp is more favorable than Standard Chartered.
Institutional and Insider Ownership
63.9% of FS Bancorp shares are owned by institutional investors. 12.9% of FS Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
FS Bancorp beats Standard Chartered on 10 of the 17 factors compared between the two stocks.
About FS Bancorp
FS Bancorp, Inc. operates as a bank holding company for 1st Security Bank of Washington that provides banking and financial services to local families, local and regional businesses, and industry niches. The company operates in two segments, Commercial and Consumer Banking; and Home Lending. It offers various deposit instruments, including checking accounts, money market deposit accounts, savings accounts, and certificates of deposit. The company provides one-to-four-family residential first mortgages, second mortgage/home equity loan products, non-mortgage commercial business loans, commercial real estate loans, and construction and development loans, as well as consumer loans, which primarily include personal lines of credit, credit cards, automobile, direct home improvement, loans on deposit, and recreational loans. It operates full bank service branches and home loan production offices in suburban communities in the greater Puget Sound area, including Snohomish, King, Pierce, Jefferson, Kitsap, Clallam, Grays Harbor, and Thurston counties; and a loan production office in the market area of the Tri-Cities. FS Bancorp, Inc. was founded in 1936 and is headquartered in Mountlake Terrace, Washington.
About Standard Chartered
Standard Chartered PLC, together with its subsidiaries, provides various banking products and services in Asia, Africa, the Middle East, Europe, and the Americas. The company operates in three segments: Corporate, Commercial & Institutional Banking; Consumer, Private & Business Banking; and Ventures. It offers retail products, such as deposits, mortgages, credit cards, and personal loans; wealth management products and services that include investments, portfolio management, insurance, and wealth advice; and transaction banking services, such as cash management, working capital, and trade financing products. The company provides financial markets products and services that comprise project and export financing; debt capital markets and leveraged financing; financing and securities services; sales and structuring; macro, commodities, and credit trading; and market research services. In addition, it offers digital banking solutions. It serves financial institutions, governments, banks, investors, corporations, small to medium-sized businesses, and individuals. Standard Chartered PLC was founded in 1853 and is headquartered in London, the United Kingdom.