Analyzing Burke & Herbert Financial Services (BHRB) & Its Rivals

Burke & Herbert Financial Services (NASDAQ:BHRB) is one of 181 publicly-traded companies in the “National commercial banks” industry, but how does it compare to its competitors? We will compare Burke & Herbert Financial Services to similar businesses based on the strength of its earnings, risk, institutional ownership, analyst recommendations, profitability, dividends and valuation.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Burke & Herbert Financial Services and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Burke & Herbert Financial Services	0	1	0	0	2.00
Burke & Herbert Financial Services Competitors	1480	8298	7033	289	2.36

Burke & Herbert Financial Services currently has a consensus price target of $73.00, indicating a potential upside of 15.93%. As a group, “National commercial banks” companies have a potential upside of 39.71%. Given Burke & Herbert Financial Services’ competitors stronger consensus rating and higher probable upside, analysts clearly believe Burke & Herbert Financial Services has less favorable growth aspects than its competitors.

Dividends

Burke & Herbert Financial Services pays an annual dividend of $2.12 per share and has a dividend yield of 3.4%. Burke & Herbert Financial Services pays out 26.0% of its earnings in the form of a dividend. As a group, “National commercial banks” companies pay a dividend yield of 2.7% and pay out 31.6% of their earnings in the form of a dividend. Burke & Herbert Financial Services is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

54.5% of shares of all “National commercial banks” companies are held by institutional investors. 9.7% of Burke & Herbert Financial Services shares are held by insiders. Comparatively, 8.7% of shares of all “National commercial banks” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Burke & Herbert Financial Services and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Burke & Herbert Financial Services	-1.10%	9.96%	0.85%
Burke & Herbert Financial Services Competitors	14.87%	9.84%	0.95%

Valuation & Earnings

This table compares Burke & Herbert Financial Services and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Burke & Herbert Financial Services	$148.44 million	$22.69 million	7.73
Burke & Herbert Financial Services Competitors	$167.05 billion	$1.93 billion	11.72

Burke & Herbert Financial Services’ competitors have higher revenue and earnings than Burke & Herbert Financial Services. Burke & Herbert Financial Services is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Burke & Herbert Financial Services competitors beat Burke & Herbert Financial Services on 10 of the 14 factors compared.

About Burke & Herbert Financial Services

Burke & Herbert Financial Services Corp. operates as the bank holding company for Burke & Herbert Bank & Trust Company that provides various community banking products and services in Virginia and Maryland. It offers consumer and commercial deposit products, such as digital banking, demand, negotiable order of withdrawal, money market, and savings accounts, as well as certificates of deposit. The company also provides loans, such as commercial real estate, single family residential, owner-occupied commercial real estate, residential mortgage, acquisition, construction and development, commercial and industrial, and consumer non-real estate and other loans. In addition, it offers treasury and cash management services; and online and mobile banking, and wealth and trust services. The company was founded in 1852 and is headquartered in Alexandria, Virginia.