Head-To-Head Review: Associated Banc (NYSE:ASB) vs. Ameris Bancorp (NASDAQ:ABCB)

Associated Banc (NYSE:ASB) and Ameris Bancorp (NASDAQ:ABCB) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Profitability

This table compares Associated Banc and Ameris Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Associated Banc	5.15%	8.24%	0.82%
Ameris Bancorp	21.46%	9.57%	1.32%

Analyst Ratings

This is a breakdown of current ratings and price targets for Associated Banc and Ameris Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Associated Banc	0	9	0	0	2.00
Ameris Bancorp	0	1	5	0	2.83

Associated Banc presently has a consensus price target of $27.00, suggesting a potential upside of 6.19%. Ameris Bancorp has a consensus price target of $70.50, suggesting a potential upside of 6.24%. Given Ameris Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Ameris Bancorp is more favorable than Associated Banc.

Dividends

Associated Banc pays an annual dividend of $0.92 per share and has a dividend yield of 3.6%. Ameris Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 1.2%. Associated Banc pays out 116.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ameris Bancorp pays out 15.4% of its earnings in the form of a dividend. Associated Banc has increased its dividend for 13 consecutive years. Associated Banc is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

83.0% of Associated Banc shares are owned by institutional investors. Comparatively, 91.6% of Ameris Bancorp shares are owned by institutional investors. 1.5% of Associated Banc shares are owned by insiders. Comparatively, 5.5% of Ameris Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Associated Banc has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Ameris Bancorp has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Valuation and Earnings

This table compares Associated Banc and Ameris Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Associated Banc	$2.39 billion	1.61	$123.14 million	$0.79	32.18
Ameris Bancorp	$1.67 billion	2.74	$358.68 million	$5.21	12.74

Ameris Bancorp has lower revenue, but higher earnings than Associated Banc. Ameris Bancorp is trading at a lower price-to-earnings ratio than Associated Banc, indicating that it is currently the more affordable of the two stocks.

Summary

Ameris Bancorp beats Associated Banc on 13 of the 17 factors compared between the two stocks.

About Associated Banc

Associated Banc-Corp, a bank holding company, provides various banking and nonbanking products to individuals and businesses in Wisconsin, Illinois, and Minnesota. The company offers lending solutions, including commercial loans and lines of credit, commercial real estate financing, construction loans, letters of credit, leasing, asset based lending and equipment finance, loan syndications products, residential mortgages, home equity loans and lines of credit, personal and installment loans, auto finance and business loans, and business lines of credit. It also provides deposit and cash management solutions, such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions, and information services; specialized financial services, such as interest rate risk management and foreign exchange solutions; fiduciary services, such as administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management services; and investable funds solutions, including savings, money market deposit accounts, IRA accounts, CDs, fixed and variable annuities, full-service, discount, and online investment brokerage; investment advisory services; and trust and investment management accounts. In addition, the company offers deposit and transactional solutions, including checking, credit, debit and pre-paid cards, online banking and bill pay; and money transfer services. Associated Banc-Corp was founded in 1861 and is headquartered in Green Bay, Wisconsin.

About Ameris Bancorp

Ameris Bancorp operates as the bank holding company for Ameris Bank that provides range of banking services to retail and commercial customers. It operates through five segments: Banking Division, Retail Mortgage Division, Warehouse Lending Division, SBA Division, and Premium Finance Division. The company offers commercial and retail checking, regular interest-bearing savings, money market, individual retirement, and certificates of deposit accounts. It also provides commercial real estate, residential real estate mortgage, agricultural, and commercial and industrial loans; consumer loans, including motor vehicle, home improvement, and home equity loans, as well as loans secured by savings accounts and personal credit lines. In addition, the company originates, administers, and services commercial insurance premium loans, equipment finance loans, and small business administration loans. It operates full service domestic banking offices, and mortgage and loan production offices. The company was founded in 1971 and is headquartered in Atlanta, Georgia.