Provident Bancorp (NASDAQ:PVBC) and People’s United Financial (NASDAQ:PBCT) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.
People’s United Financial pays an annual dividend of $0.70 per share and has a dividend yield of 4.0%. Provident Bancorp does not pay a dividend. People’s United Financial pays out 53.4% of its earnings in the form of a dividend. People’s United Financial has increased its dividend for 12 consecutive years.
This table compares Provident Bancorp and People’s United Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|People’s United Financial||24.34%||8.11%||1.04%|
This is a breakdown of current ratings and recommmendations for Provident Bancorp and People’s United Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|People’s United Financial||0||4||3||0||2.43|
People’s United Financial has a consensus target price of $19.88, indicating a potential upside of 14.49%. Given People’s United Financial’s higher probable upside, analysts clearly believe People’s United Financial is more favorable than Provident Bancorp.
Insider & Institutional Ownership
21.8% of Provident Bancorp shares are held by institutional investors. Comparatively, 77.3% of People’s United Financial shares are held by institutional investors. 3.3% of Provident Bancorp shares are held by insiders. Comparatively, 2.4% of People’s United Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Provident Bancorp has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, People’s United Financial has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.
Valuation & Earnings
This table compares Provident Bancorp and People’s United Financial’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Provident Bancorp||$46.52 million||4.71||$9.32 million||N/A||N/A|
|People’s United Financial||$1.92 billion||3.42||$468.10 million||$1.31||13.25|
People’s United Financial has higher revenue and earnings than Provident Bancorp.
People’s United Financial beats Provident Bancorp on 11 of the 15 factors compared between the two stocks.
Provident Bancorp Company Profile
Provident Bancorp, Inc. is a Massachusetts corporation that was formed in 2011 by The Provident Bank to be its holding company. Approximately 52.1% of Provident Bancorp, Inc. outstanding shares are owned by Provident Bancorp, a Massachusetts corporation and a mutual holding company. The Provident Bank, a subsidiary of Provident Bancorp, Inc., is an innovative, commercial bank that finds solutions for business and private clients. We are committed to strengthening the economic development of the regions we serve, by working closely with businesses and private clients and delivering superior products and high-touch services to meet their banking needs. The Provident has offices in Massachusetts and New Hampshire. All deposits are insured in full through a combination of insurance provided by the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF).
People’s United Financial Company Profile
People's United Financial, Inc. operates as the bank holding company for People's United Bank, National Association that provides commercial banking, retail banking, and wealth management services to individual, corporate, and municipal customers. The company operates in two segments, Commercial Banking and Retail Banking. The Commercial Banking segment offers commercial real estate lending, commercial and industrial lending, and commercial deposit gathering services. This segment also provides equipment financing; cash management, correspondent banking, and municipal banking services; and institutional trust, corporate trust, private banking, and insurance services. The Retail Banking segment offers consumer lending, including residential mortgage and home equity lending; and consumer deposit gathering services. This segment also provides brokerage, financial advisory, investment management, life insurance, and non-institutional trust services. In addition, the company offers online banking, investment trading, and telephone banking services. It operates through a network of 403 branches, including 147 full-service stop and shop supermarket branches located in Connecticut, southeastern New York, Massachusetts, Vermont, Maine, and New Hampshire, as well as 598 ATMs. People's United Financial, Inc. was founded in 1842 and is headquartered in Bridgeport, Connecticut.
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