Sterling Story

SBT -- USA Stock

USD 5.39 0.03 0.55%

Macroaxis Story

As many rational traders are trying to avoid financial services space, it makes sense to review Sterling Bancorp a little further and understand how it stands against CHINA MERCHANTS and other similar entities. We are going to break down some of the competitive aspects of both Sterling and CHINA.

Published over three weeks ago

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Our viewpoint on Sterling Bancorp (NASDAQ:SBT) and CHINA MERCHANTS (OTC:CIHHF)?

By analyzing existing essential indicators between Sterling Bancorp and CHINA, 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 CHINA 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 4.36 percent. This implies that the company is making $0.0436 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 companies, such as Sterling or China is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Sterling Bancorp dividends

A dividend is the distribution of a portion of Sterling Bancorp earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Sterling Bancorp dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Sterling one year expected dividend income is about $0.01 per share.

Investing in stocks that pay dividends, such as stock of Sterling Bancorp, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Sterling Bancorp must own a stock before its ex-dividend date to receive its next dividend.

This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Sterling Bancorp. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

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. Please check the breakdown between Sterling Bancorp's total debt and its cash.

Correlation Between Sterling and China Merchants Bank

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 China Merchants to your portfolio. If China Merchants 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, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between SBT and CIHHF for more information.

Note

Are you currently holding both Sterling Bancorp and China Merchants in your portfolio?

Please note if you are using this as a pair-trade strategy between Sterling Bancorp and China Merchants, 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.

An Additional Perspective On Sterling Bancorp

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

Now, let's check Sterling Bancorp revenue. Based on the latest financial disclosure, Sterling Bancorp reported 88.98 M of revenue. This is 99.21% 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 99.06% higher than that of Sterling Bancorp. As for CHINA MERCHANTS we see revenue of 27.58 B, which is much higher than that of the Banks?Regional

CIHHF

27.6 B

SBT	88.98 Million	0.32
Sector	0.0	0.0
CIHHF	27.58 Billion	99.68

Possible March throwback of Sterling?

Newest Sortino Ratio is up to 0.06. Price may drop again. Sterling Bancorp currently demonstrates below-verage downside deviation. It has Information Ratio of 0.06 and Jensen Alpha of 0.33. However, we do advice investors to further question Sterling Bancorp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On Sterling Bancorp

Whereas some companies within the banks?regional industry are still a little expensive, even after the recent corrections, Sterling Bancorp may offer a potential longer-term growth to private investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take up nor trade any shares of Sterling Bancorp at this time. The Sterling Bancorp risk-reward trade off is not appealing enough to do any trading. 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.

About Contributor

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 Terms of Use for any information regarding our disclosure principles.

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