How does the Bendigo Bank share price stack up against its ASX 200 peers?

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price finished flat on Friday at $8.66 apiece.

After a tremendously volatile year on the charts, share price distribution has whipsawed to highs of $10.78 and lows of $7.79 just last month.

As seen in the chart below, the Bendigo Bank share price is down almost 5% this year to date.

Bendigo Bank share price versus peers

Comparatively, Bendigo has performed on par with the other ASX banking majors over the 12 months to date.

As seen in the chart below, there’s been a gradual decline in the entire basket, resulting in heavy losses in all but National Australia Bank Ltd (ASX: NAB).

In terms of financials, the bank has some interesting points to comment on. For example, its net income margin is below the banking major’s median score, as seen below. The same is true for return on equity (ROE), which is also below the median score for its peers.

However, it is valued at a discount to peers in trading at a price-to-earnings (P/E) ratio of 11.6 times, and a price-to-book (P/Book) ratio of 0.73 times (compared to 14.5 and 1.18 times respectively).

As such, Bendigo’s performance with respect to financials is balanced.

What about in terms of analyst coverage? According to Refinitiv Eikon data, a total of 4 out of 14 analysts rate it a buy right now.

The amount of buy calls is actually up from just 1 back in August. Whereas the consensus Bendigo Bank price target from this list is $9.50, a small portion of upside from the current market price.

There are certain headwinds that are unavoidable for all of the banking majors on a forward-looking basis.

Chief to these remains surging interest rates and the pull-through effect from these onto a bank’s net interest income and net interest margin.

All the banks are set to feel the pinch. This is due to the concentrated state of the Australian mortgage market, and fierce competition between lenders keeping a clamp on borrowing rates.

This has been reflected in the shares of the banking majors for 2022. For Bendigo, despite an early rally from January–May, its share price is still in deep drawdown and has ways to go before reaching its previous high.

Over the past 12 months, the Bendigo Bank share price is down 8%.

The post How does the Bendigo Bank share price stack up against its ASX 200 peers? appeared first on The Motley Fool Australia.

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More reading

• Looking to buy Bendigo Bank shares? Here’s how the bank compares with peers on one key metric
• What’s the outlook for ASX 200 bank shares in Q2?
• A mortgage ‘battleground’ is coming. UBS names ASX 200 bank shares best placed to win
• What’s the outlook for ASX dividend shares for the rest of 2022?
• Down 27% in 2 months, this ASX 200 bank share is a ‘buying opportunity’: expert

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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