By analyzing existing fundamental drivers between Sterling Bancorp and Hdfc Bank, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Hdfc Bank with a short position in Sterling Bancorp. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Sterling Bancorp has an asset utilization ratio of 3.55 percent. This implies that the company is making $0.0355 for each dollar of assets. An increasing asset utilization means that Sterling Bancorp is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Sterling or HMN is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Sterling Bancorp's Liquidity
Sterling Bancorp
financial leverage refers to using borrowed capital as a funding source to finance Sterling Bancorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Sterling Bancorp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Sterling Bancorp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Sterling Bancorp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Sterling Bancorp's total debt and its cash.
Correlation Between Sterling and HMN Financial
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Sterling Bancorp together with similar or unrelated positions with a negative correlation. For example, you can also add HMN Financial to your portfolio. If HMN Financial is not perfectly correlated to Sterling Bancorp it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Sterling Bancorp, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Sterling Bancorp and HMN Financial in your portfolio? Please note if you are using this as a pair-trade strategy between Sterling Bancorp and HMN Financial, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between SBT and HMNF for more information.
Breaking down Sterling Bancorp Further
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze Sterling Bancorp revenue. Based on the latest financial disclosure, Sterling Bancorp reported 72.4
M of revenue. This is 99.35% lower than that of the Financial Services sector and significantly higher than that of the
Banks—Regional industry. The revenue for all United States stocks is 99.23% higher than that of Sterling Bancorp. As for Hdfc Bank we see revenue of 804.01
B, which is much higher than that of the Banks—Regional
| SBT | 72.4 Million | 0.009004 |
| Sector | 0.0 | 0.0 |
| HDB | 804.01 Billion | 99.99 |
Our take on today Sterling Bancorp gain
Newest jensen alpha is at 0.21. Sterling Bancorp has relatively low volatility with skewness of 0.4 and kurtosis of 1.62. However, we advise all investors to independently investigate Sterling Bancorp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sterling Bancorp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sterling Bancorp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Sterling Bancorp Implied Volatility
Sterling Bancorp's implied volatility exposes the market's sentiment of Sterling Bancorp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Sterling Bancorp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Sterling Bancorp stock will not fluctuate a lot when Sterling Bancorp's options are near their expiration.
Our Takeaway on Sterling Bancorp Investment
Whereas many other companies under the banks—regional industry are still a bit expensive, Sterling Bancorp may offer a potential longer-term growth to private investors. With an optimistic outlook on your 90 days horizon, it may be a good time to pick up new shares of Sterling or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Sterling Bancorp.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Sterling Bancorp. Please refer to our
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