Contrasting Univest Co. of Pennsylvania (UVSP) & Peapack-Gladstone Financial (PGC)

Univest Co. of Pennsylvania (NASDAQ: UVSP) and Peapack-Gladstone Financial (NASDAQ:PGC) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Risk and Volatility

Univest Co. of Pennsylvania has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Peapack-Gladstone Financial has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Profitability

This table compares Univest Co. of Pennsylvania and Peapack-Gladstone Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Univest Co. of Pennsylvania 18.71% 8.35% 0.99%
Peapack-Gladstone Financial 20.36% 9.54% 0.83%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Univest Co. of Pennsylvania and Peapack-Gladstone Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Univest Co. of Pennsylvania 0 2 1 0 2.33
Peapack-Gladstone Financial 0 1 2 0 2.67

Univest Co. of Pennsylvania presently has a consensus target price of $32.67, suggesting a potential upside of 14.02%. Peapack-Gladstone Financial has a consensus target price of $35.75, suggesting a potential upside of 1.97%. Given Univest Co. of Pennsylvania’s higher probable upside, equities research analysts clearly believe Univest Co. of Pennsylvania is more favorable than Peapack-Gladstone Financial.

Valuation and Earnings

This table compares Univest Co. of Pennsylvania and Peapack-Gladstone Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Univest Co. of Pennsylvania $182.57 million 4.55 $19.50 million $1.53 18.73
Peapack-Gladstone Financial $145.97 million 4.39 $26.47 million $1.90 18.45

Peapack-Gladstone Financial has lower revenue, but higher earnings than Univest Co. of Pennsylvania. Peapack-Gladstone Financial is trading at a lower price-to-earnings ratio than Univest Co. of Pennsylvania, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

70.8% of Univest Co. of Pennsylvania shares are owned by institutional investors. Comparatively, 69.5% of Peapack-Gladstone Financial shares are owned by institutional investors. 3.6% of Univest Co. of Pennsylvania shares are owned by insiders. Comparatively, 5.9% of Peapack-Gladstone Financial shares are owned by 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.

Dividends

Univest Co. of Pennsylvania pays an annual dividend of $0.80 per share and has a dividend yield of 2.8%. Peapack-Gladstone Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Univest Co. of Pennsylvania pays out 52.3% of its earnings in the form of a dividend. Peapack-Gladstone Financial pays out 10.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Peapack-Gladstone Financial beats Univest Co. of Pennsylvania on 10 of the 16 factors compared between the two stocks.

Univest Co. of Pennsylvania Company Profile

Univest Corporation of Pennsylvania is the bank holding company of Univest Bank and Trust Co. (the Bank). The Bank is a Pennsylvania state-chartered bank and trust company. The Company’s business segments include Banking, Wealth Management and Insurance. The Banking segment provides financial services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking services and equipment lease financing. The Wealth Management segment offers trust and investment advisory services, guardian and custodian of employee benefits and other trust and brokerage services, as well as a registered investment advisory managing private investment accounts for both individuals and institutions. The Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, group life and health coverage, employee benefit solutions, personal insurance lines and human resources consulting.

Peapack-Gladstone Financial Company Profile

Peapack-Gladstone Financial Corporation is a bank holding company. The Company’s principal subsidiary is Peapack-Gladstone Bank (the Bank), which is a state chartered commercial bank. The Company operates through two segments: Banking and Private Wealth Management Division. The Banking segment includes commercial, commercial real estate, multifamily, residential and consumer lending activities; deposit generation; operation of automated teller machines (ATMs); telephone and Internet banking services; merchant credit card services, and customer support sales. The Private Wealth Management Division includes asset management services provided for individuals and institutions; personal trust services, including services as executor, trustee, administrator, custodian and guardian; corporate trust services, including services as trustee for pension and profit sharing plans, and other financial planning and advisory services.

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