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How Does Western Alliance Bancorp Compare to Its Peers?

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Western Alliance and its peers

An analysis of Western Alliance and its peers follows:

  • The EPS (earnings per share) of Western Alliance Bancorp (WAL), U.S. Bancorp (USB), and PacWest Bancorp (PACW) are $0.58, $0.81, and $0.68, respectively, in 3Q15.
  • The forward PE (price-to-earnings) ratios of Western Alliance, U.S. Bancorp, PacWest, Zions Bancorp (ZION), and TCF Financial (TCB) are 15.04x, 11.84x, 14.41x, 13.72x, and 12.48x, respectively.

  • The PBV (price-to-book value) ratios of Western Alliance, U.S. Bancorp, PacWest, Zions, and TCF Financial are 2.02x, 1.83x, 1.25x, 0.88x, and 1.31x, respectively.

According to the above findings, the peers outperformed Western Alliance based on the EPS. However, Western Alliance is way ahead of its peers based on the forward PE ratio and PBV ratio.

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ETFs that invest in Western Alliance Bancorp

The PowerShares DWA Financial Momentum Portfolio (PFI) invests 2.2% of its holdings in Western Alliance. PFI tracks an index of US financial firms selected and weighted by price momentum.

The KBE Bank Fund (KBE) invests 1.7% of its holdings in Western Alliance. KBE tracks an equal-weighted index of US banking firms.

The SPDR S&P Regional Banking Fund (KRE) invests 1.5% of its holdings in Western Alliance. KRE tracks an equal-weighted index of US regional banking stocks.

Comparing Western Alliance and its ETFs

An analysis of Western Alliance and its ETFs follows:

  • The YTD (year-to-date) price movements of Western Alliance, KBE, and KRE are 19.3%, 2.4%, and 4.4%, respectively.
  • The PE ratios of Western Alliance, PFI, KBE, and KRE are 18.84x, 16.45x, 14.01x, and 15.38x, respectively.
  • The PBV ratios of Western Alliance, PFI, KBE, and KRE are 2.02x, 2.49x, 1.21x, and 1.26x, respectively.

As a result, Western Alliance Bancorp is way ahead of its ETFs based on the price movement, PE ratio, and PBV ratio.

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