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How Has Prosperity Bancshares Performed in a Competitive Market?

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Prosperity Bancshares and its peers

In this part of the series, we’ll compare Prosperity Bancshares to its industry peers.

  • The forward PE (price-to-earnings) ratios of Prosperity Bancshares (PB), Cullen/Frost Bankers (CFR), Texas Capital Bancshares (TCBI), and First Financial Bankshares (FFIN) are 12.48x, 13.90x, 15.73x, and 19.85x, respectively.

  • The PBV (price-to-book value) ratios of Prosperity Bancshares, Cullen/Frost Bankers, Texas Capital, First Financial Bankshares, and International Bancshares (IBOC) are 1.07x, 1.53x, 1.79x, 3.11x, and 1.11x, respectively.

The competitors have outperformed Prosperity Bancshares based on forward PE and PBV.

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ETFs that invest in Prosperity Bancshares

The PowerShares KBW Regional Bank ETF (KBWR) invests 1.9% of its holdings in Prosperity. The ETF tracks an equal-weighted index focused exclusively on US regional banking firms.

The SPDR S&P Bank ETF (KBE) invests 1.5% of its holdings in Prosperity. The ETF tracks an equal-weighted index of US banking firms.

The SPDR S&P Regional Banking ETF (KRE) invests 1.3% of its holdings in Prosperity. The ETF tracks an equal-weighted index of US regional banking stocks.

Prosperity Bancshares compared to its ETFs

Below is how Prosperity Bancshares compares to the ETFs that invest in it:

  • The year-to-date price movements of Prosperity, KBWR, KBE, and KRE are -5.5%, 5.0%, 2.8%, and 4.9%, respectively.
  • The PE (price-to-earnings) ratios of Prosperity, KBWR, KBE, and KRE are 11.98x, 18.85x, 14.01x, and 15.38x, respectively.
  • The PBV (price-to-book value) ratios of Prosperity, KBWR, KBE, and KRE are 1.07x, 1.39x, 1.21x, and 1.26x, respectively.

The ETFs have outperformed Prosperity Bancshares based on price movement, PE, and PBV.

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