Live Oak Bancshares Inc (LOB, Financial) has recently caught the attention of investors with its notable stock performance. The company's market capitalization stands at a robust $1.8 billion, with the current stock price at $40.22. Over the past week, LOB has experienced a gain of 1.69%, and looking at a broader timeframe, the stock has gained an impressive 12.56% over the past three months. According to the GF Value, which is currently at $40.27, Live Oak Bancshares is considered fairly valued. This is a shift from three months ago when the stock was seen as modestly undervalued with a past GF Value of $42.81.
Introduction to Live Oak Bancshares Inc
Live Oak Bancshares Inc operates within the banking industry, providing specialized lending and deposit-related services to small businesses across the United States. The company's approach to lending is unique, focusing on industry-specific lending and government-guaranteed loan programs. Live Oak Bancshares has carved out a niche for itself by offering expertise in certain industries, known as verticals, and extending credit to qualified borrowers within these sectors. The bank's loan portfolio includes loans partially guaranteed by the Small Business Administration and the U.S. Department of Agriculture, among other programs. 
Assessing Profitability
Live Oak Bancshares Inc's profitability is commendable, with a Profitability Rank of 6/10. The company's return on equity (ROE) is 8.76%, which is better than 42.01% of its peers in the industry. Furthermore, its return on assets (ROA) stands at 0.69%, surpassing 35.51% of competitors. Notably, Live Oak Bancshares has maintained profitability for the past 10 years, a feat better than 99.93% of companies in the banking sector. 
Growth Trajectory of Live Oak Bancshares
The company's growth metrics are also impressive. With a Growth Rank of 6/10, Live Oak Bancshares has demonstrated solid growth patterns. The 3-Year Revenue Growth Rate per Share stands at 12.20%, outperforming 72.36% of companies in the industry. The 5-Year Revenue Growth Rate per Share is even more remarkable at 17.20%, which is better than 90.3% of its peers. Additionally, the 3-Year EPS without NRI Growth Rate is 4.20%, and the 5-Year EPS without NRI Growth Rate is a robust 28.50%, both indicating strong earnings growth. 
Significant Investment Holders
Notable investment firms have taken significant positions in Live Oak Bancshares, signaling confidence in the company's prospects. Diamond Hill Capital (Trades, Portfolio) is the top holder with 1,911,431 shares, representing 4.28% of the company's shares. Barrow, Hanley, Mewhinney & Strauss follows closely with 1,685,443 shares, accounting for 3.78% of the shares. HOTCHKIS & WILEY also holds a stake with 230,218 shares, making up 0.52% of the shares.
Competitive Landscape
When compared to its competitors, Live Oak Bancshares holds its ground with a market cap of $1.8 billion. Merchants Bancorp (MBIN, Financial) has a slightly higher market cap at $1.88 billion, while Enterprise Financial Services Corp (EFSC, Financial) and Westamerica Bancorp (WABC, Financial) have market caps of $1.5 billion and $1.28 billion, respectively. This positioning reflects Live Oak Bancshares' solid standing within the banking industry.
Conclusion
In summary, Live Oak Bancshares Inc has demonstrated a strong stock performance recently, with a fair valuation according to the GF Value. The company's profitability and growth prospects are robust, as evidenced by its Profitability and Growth Ranks. The confidence of major holders in the company's stock further solidifies its market position. When juxtaposed with its competitors, Live Oak Bancshares maintains a competitive edge, suggesting a stable investment opportunity for value investors.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
