Signature Bank (NASDAQ:SBNY) and Silvergate Capital (NYSE:SI) Critical Analysis

Earnings and Valuation

This table compares Signature Bank and Silvergate Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Signature Bank	$3.71 billion	N/A	$1.34 billion	N/A	N/A
Silvergate Capital	-$609.47 million	-0.02	-$937.91 million	($29.96)	-0.01

Signature Bank has higher revenue and earnings than Silvergate Capital.

Institutional & Insider Ownership

11.1% of Signature Bank shares are owned by institutional investors. Comparatively, 94.4% of Silvergate Capital shares are owned by institutional investors. 1.5% of Signature Bank shares are owned by company insiders. Comparatively, 1.7% of Silvergate Capital shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Signature Bank and Silvergate Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Signature Bank	N/A	N/A	N/A
Silvergate Capital	45.10%	8.87%	0.81%

Volatility & Risk

Signature Bank has a beta of 9.4, suggesting that its share price is 840% more volatile than the S&P 500. Comparatively, Silvergate Capital has a beta of 2.23, suggesting that its share price is 123% more volatile than the S&P 500.

Summary

Silvergate Capital beats Signature Bank on 5 of the 8 factors compared between the two stocks.

About Signature Bank

As of March 12, 2023, Signature Bank went out of business. Previously, the company provided digital assets banking services and comprised of certain loan portfolios. The company was incorporated in 2000 and is based in New York, New York. Signature Bank now trades on OTCPK.

About Silvergate Capital

Silvergate Capital Corporation operates as a bank holding company for Silvergate Bank that provides banking products and services to business and individual clients in the United States. The company accepts deposit products, including interest and noninterest bearing demand accounts, money market and savings accounts, and certificates of deposit accounts. Its loan products comprise one-to-four family real estate loans, multi-family real estate loans, commercial real estate loans, construction loans, commercial and industrial loans, mortgage warehouse loans, and reverse mortgage loans, as well as consumer loans and other loans secured by personal property. The company also provides cash management services for digital currency-related businesses. Silvergate Capital Corporation was founded in 1988 and is headquartered in La Jolla, California.