Contrasting Peapack-Gladstone Financial (NASDAQ:PGC) & KBC GRP NV/ADR (NASDAQ:KBCSY)

Peapack-Gladstone Financial (NASDAQ:PGC) and KBC GRP NV/ADR (OTCMKTS:KBCSY) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Earnings and Valuation

This table compares Peapack-Gladstone Financial and KBC GRP NV/ADR’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Peapack-Gladstone Financial $203.88 million 2.60 $44.17 million $2.31 11.81
KBC GRP NV/ADR $11.77 billion 2.03 $3.04 billion $3.53 8.09

KBC GRP NV/ADR has higher revenue and earnings than Peapack-Gladstone Financial. KBC GRP NV/ADR is trading at a lower price-to-earnings ratio than Peapack-Gladstone Financial, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

73.6% of Peapack-Gladstone Financial shares are owned by institutional investors. Comparatively, 0.1% of KBC GRP NV/ADR shares are owned by institutional investors. 4.1% of Peapack-Gladstone Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Peapack-Gladstone Financial and KBC GRP NV/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Peapack-Gladstone Financial 20.28% 9.36% 0.96%
KBC GRP NV/ADR 25.49% 12.56% 0.82%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Peapack-Gladstone Financial and KBC GRP NV/ADR, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Peapack-Gladstone Financial 0 1 2 0 2.67
KBC GRP NV/ADR 0 0 1 0 3.00

Peapack-Gladstone Financial presently has a consensus price target of $36.50, suggesting a potential upside of 33.75%. Given Peapack-Gladstone Financial’s higher possible upside, equities analysts plainly believe Peapack-Gladstone Financial is more favorable than KBC GRP NV/ADR.

Volatility & Risk

Peapack-Gladstone Financial has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, KBC GRP NV/ADR has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Dividends

Peapack-Gladstone Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. KBC GRP NV/ADR pays an annual dividend of $1.86 per share and has a dividend yield of 6.5%. Peapack-Gladstone Financial pays out 8.7% of its earnings in the form of a dividend. KBC GRP NV/ADR pays out 52.7% 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 KBC GRP NV/ADR on 9 of the 16 factors compared between the two stocks.

About Peapack-Gladstone Financial

Peapack-Gladstone Financial Corporation operates as the bank holding company for Peapack-Gladstone Bank that provides private banking and wealth management services in the United States. The company operates in two segments, Banking and Private Wealth Management. It offers checking and savings accounts, money market and interest-bearing checking accounts, certificates of deposit, and individual retirement accounts. The company also provides working capital lines of credit, term loans for fixed asset acquisitions, commercial mortgages, multi-family mortgages, and other forms of asset-based financing services; and residential mortgages, home equity lines of credit, and other second mortgage loans. In addition, it offers asset management services; personal trust services, including services as executor, trustee, administrator, custodian, and guardian; and other financial planning, tax preparation, and advisory services. Further, the company operates automated teller machines at 24 locations; and provides telephone and Internet banking, merchant credit card, and customer support sales services. Its private banking clients include businesses, non-profits, and consumers; and wealth management clients comprise individuals, families, foundations, endowments, trusts, and estates. The company operates its private banking locations in Bedminster, Morristown, Princeton, and Teaneck, New Jersey; and wealth management branches in Somerset, Morris, Hunterdon, and Union counties. Peapack-Gladstone Financial Corporation was founded in 1921 and is based in Bedminster, New Jersey.

About KBC GRP NV/ADR

KBC Group NV, together with its subsidiaries, provides integrated bank-insurance services primarily for retail, private banking, small and medium sized enterprises, and mid-cap clients. It accepts deposits; offers home and mortgage loans; consumer finance and SME funding services; credit, asset management, and life and non-life insurance; payments, and money and debt market services; investment fund solutions; brokerage and corporate finance, foreign trade finance, cash management, leasing, etc.; and other specialized financial products and services. The company also provides telephone, Internet, and mobile banking services. As of December 31, 2018, it operated 585 bank branches and 374 insurance agencies in Belgium; 777 bank branches in Czech Republic, the Slovak Republic, Hungary, and Bulgaria; and 27 bank branches internationally. KBC Group NV serves customers through agents, brokers, multi-agents, and various electronic channels. The company was formerly known as KBC Bank and Insurance Holding Company NV and changed its name to KBC Group NV in March 2005. KBC Group NV was incorporated in 1935 and is headquartered in Brussels, Belgium.

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