PCSB Financial (NASDAQ: PCSB) and Hingham Institution for Savings (NASDAQ:HIFS) are both small-cap financials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Analyst Recommendations

This is a summary of current ratings and target prices for PCSB Financial and Hingham Institution for Savings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PCSB Financial 0 0 1 0 3.00
Hingham Institution for Savings 0 0 0 0 N/A

PCSB Financial currently has a consensus price target of $19.00, indicating a potential downside of 4.43%. Given PCSB Financial’s higher probable upside, analysts clearly believe PCSB Financial is more favorable than Hingham Institution for Savings.

Insider & Institutional Ownership

41.3% of PCSB Financial shares are held by institutional investors. Comparatively, 29.1% of Hingham Institution for Savings shares are held by institutional investors. 1.6% of PCSB Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares PCSB Financial and Hingham Institution for Savings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PCSB Financial 3.98% 3.05% 0.49%
Hingham Institution for Savings 31.23% N/A N/A

Valuation and Earnings

This table compares PCSB Financial and Hingham Institution for Savings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PCSB Financial $45.04 million 8.02 $3.22 million $0.11 180.73
Hingham Institution for Savings $82.47 million 5.22 $25.76 million $11.83 17.24

Hingham Institution for Savings has higher revenue and earnings than PCSB Financial. Hingham Institution for Savings is trading at a lower price-to-earnings ratio than PCSB Financial, indicating that it is currently the more affordable of the two stocks.

Dividends

Hingham Institution for Savings pays an annual dividend of $1.36 per share and has a dividend yield of 0.7%. PCSB Financial does not pay a dividend. Hingham Institution for Savings pays out 11.5% of its earnings in the form of a dividend.

Summary

PCSB Financial beats Hingham Institution for Savings on 9 of the 14 factors compared between the two stocks.

PCSB Financial Company Profile

PCSB Financial Corporation will be the holding company of PCSB Bank (the Bank). The Bank is a mutual savings bank. The Bank attracts deposits from the general public and utilizes those funds primarily to originate and purchase residential real estate, commercial real estate and business loans, and to purchase investment securities. As of September 30, 2016, the Bank had consolidated total assets of $1.25 billion, total deposits of $1.12 billion and equity of $111.5 million. The Bank’s provides commercial lending and deposit opportunities for its customers. The Bank operates in 15 locations, offices located in Dutchess, Putnam, Rockland and Westchester Counties in New York. The Bank’s subsidiaries include PCSB Commercial Bank, PCSB Funding Corp. and PCSB Realty Ltd.

Hingham Institution for Savings Company Profile

Hingham Institution for Savings (the Bank) is a Massachusetts-chartered savings bank (the Bank). The Bank is principally engaged in the business of residential and commercial real estate mortgage lending, funded by a retail deposit network and borrowings. The Bank provides a range of financial services to individuals and small businesses through its approximately 10 offices in Boston and southeastern Massachusetts. Its primary deposit products are savings, checking, and term certificate accounts, and its primary lending products are residential and commercial mortgage loans secured by properties in Eastern Massachusetts. The Bank offers personal checking accounts, money market and savings accounts, as well as longer term certificates of deposit for individuals, businesses, non-profits, cities and towns. The Bank’s loan portfolio includes residential real estate, commercial real estate, construction, home equity, commercial and consumer segments.

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