People’s United Financial (NASDAQ: PBCT) and Porter Bancorp (NASDAQ:PBIB) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.
This table compares People’s United Financial and Porter Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|People’s United Financial||18.88%||6.14%||0.75%|
People’s United Financial has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Porter Bancorp has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500.
Insider & Institutional Ownership
77.2% of People’s United Financial shares are owned by institutional investors. Comparatively, 17.9% of Porter Bancorp shares are owned by institutional investors. 2.7% of People’s United Financial shares are owned by company insiders. Comparatively, 28.7% of Porter Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This is a summary of current ratings and target prices for People’s United Financial and Porter Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|People’s United Financial||2||9||0||0||1.82|
People’s United Financial presently has a consensus price target of $18.31, suggesting a potential upside of 0.86%. Given People’s United Financial’s higher probable upside, equities research analysts plainly believe People’s United Financial is more favorable than Porter Bancorp.
Valuation and Earnings
This table compares People’s United Financial and Porter Bancorp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|People’s United Financial||$1.34 billion||4.57||$300.38 million||$0.89||20.39|
|Porter Bancorp||$35.80 million||1.98||-$2.01 million||($0.33)||-35.12|
People’s United Financial has higher revenue and earnings than Porter Bancorp. Porter Bancorp is trading at a lower price-to-earnings ratio than People’s United Financial, indicating that it is currently the more affordable of the two stocks.
People’s United Financial pays an annual dividend of $0.69 per share and has a dividend yield of 3.8%. Porter Bancorp does not pay a dividend. People’s United Financial pays out 77.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Porter Bancorp has increased its dividend for 10 consecutive years.
People’s United Financial beats Porter Bancorp on 10 of the 14 factors compared between the two stocks.
People’s United Financial Company Profile
People’s United Financial, Inc. is a bank holding company and a financial holding company of People’s United Bank (the Bank). The Bank is engaged in providing commercial banking, retail banking and wealth management services to individual, corporate and municipal customers. The Company operates through two segments: Commercial Banking and Retail Banking. Commercial Banking segment is engaged in commercial real estate lending, commercial and industrial lending, and commercial deposit gathering activities. It offers cash management, correspondent banking, municipal banking, institutional trust services, corporate trust, insurance services and private banking, among others. Retail Banking segment provides consumer lending (including residential mortgage and home equity lending) and consumer deposit gathering activities. The Retail Banking segment also includes brokerage, financial advisory services, investment management services, and life insurance and non-institutional trust services.
Porter Bancorp Company Profile
Porter Bancorp, Inc. is a bank holding company. The Company operates through its subsidiary, PBI Bank (the Bank). The Bank is a community bank with a range of commercial and personal banking products. It offers retail and commercial deposit products. It offers drive-in banking facilities, automatic teller machines, night depository, personalized checks, credit cards, debit cards, Internet banking, mobile banking, treasury management services, remote deposit services, electronic funds transfers through automated clearing house services, domestic and foreign wire transfers, cash management, vault services, and loan and deposit sweep accounts. It operates banking offices in approximately 12 counties in Kentucky. Its markets include metropolitan Louisville in Jefferson County and the surrounding counties of Henry and Bullitt. It serves south central Kentucky and southern Kentucky from banking offices in Butler, Green, Hart, Edmonson, Barren, Warren, Ohio and Daviess Counties.
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