VPN bank revised wide range of financial operations including: retail banking, merchant services, corporate and institutional banking, mortgage and global investment servicing and asset management. Bank operates in six segments and these six segments earned altogether 14. 9 billion dollars in revenue in 2012.
VPN is considered to be regional bank and its one of the most successful banks out there. The fact that VPN is already well-run traditionally oriented bank gives them great advantage comparing to other regional banks and big banks.It is conservative bank that is continuously writing the loans. Banks revenue is mostly fee-based and not interest based which helps them maintain steady income. These are Just some of the reasons of high stock prices comparing to its competitors. Based on the numbers shown in table we can see that VPN has high net profit margin comparing to its competitors, which shows us how much exactly of company’s revenue is kept as net income. One of the Pan’s most direct competitors is regional Bank B&T that has higher net profit margin but lower stock price and PIE.
Since PIE reflect investors demand for a company’s share, the higher PIE the better. Also from table we can see that Bank of America has the highest PIE. This high PIE shows us that investors believe that stock price is undervalued and that it will go up. BOA’s stock price is slightly going up every day, but I don’t think that it will reach CPM, Citreous or VPN price. After recent financial crises and bailout that Bank of America received it will take a while for public to return its confidence.
Pan’s return on equity is slightly lower the in industry which is not surprising taking in the account less use of leverage. All competitors have beta higher than one which implies greater risk, but lowest returns on equity of 4% which affects the stock price and cash generation in the company. Pan’s beta is below average in the industry which is 1. 34. If you are looking to invest after analyzing the date I would recommend going with VPN.
It has solid overall performance with stock price continuously rising in last years.