Dime Community Bancshares (NASDAQ: PDLB) and PDL Community Bancorp (NASDAQ:PDLB) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Earnings & Valuation

This table compares Dime Community Bancshares and PDL Community Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dime Community Bancshares $233.61 million 2.95 $51.88 million $1.29 14.26
PDL Community Bancorp $42.09 million 6.47 -$4.38 million N/A N/A

Dime Community Bancshares has higher revenue and earnings than PDL Community Bancorp.

Institutional & Insider Ownership

72.9% of Dime Community Bancshares shares are owned by institutional investors. Comparatively, 15.9% of PDL Community Bancorp shares are owned by institutional investors. 7.3% of Dime Community Bancshares shares are owned by company insiders. Comparatively, 1.1% of PDL Community Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Dime Community Bancshares and PDL Community Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dime Community Bancshares 1 2 1 0 2.00
PDL Community Bancorp 0 0 0 0 N/A

Dime Community Bancshares currently has a consensus price target of $21.50, suggesting a potential upside of 16.85%. Given Dime Community Bancshares’ higher probable upside, analysts clearly believe Dime Community Bancshares is more favorable than PDL Community Bancorp.

Dividends

Dime Community Bancshares pays an annual dividend of $0.56 per share and has a dividend yield of 3.0%. PDL Community Bancorp does not pay a dividend. Dime Community Bancshares pays out 43.4% of its earnings in the form of a dividend.

Profitability

This table compares Dime Community Bancshares and PDL Community Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dime Community Bancshares 23.18% 8.54% 0.81%
PDL Community Bancorp -9.74% -1.40% -0.25%

Summary

Dime Community Bancshares beats PDL Community Bancorp on 10 of the 12 factors compared between the two stocks.

About Dime Community Bancshares

Dime Community Bancshares, Inc. operates as the holding company for Dime Community Bank that provides commercial banking and financial services in New York. It offers deposit products, such as savings, money market, and interest bearing and non-interest bearing checking accounts, as well as certificates of deposit. The company also offers multifamily residential and commercial real estate loans; commercial and industrial loans, such as lines of credit, revolving lines of credit, and term loans; one-to-four family residential and condominium/cooperative apartment loans; home equity and home improvement loans; equity lines of credit on multifamily residential and commercial real estate loans; acquisition, land development, and construction loans; small business administration loans; finance loans and leases; and consumer loans. In addition, it manages and owns real estate; sells non-Federal Deposit Insurance Corporation insured investment products; and invests in multifamily residential and commercial real estate loans. As of December 31, 2017, the company operated 28 full-service retail banking offices located throughout Brooklyn, Queens, the Bronx, Nassau County, and Suffolk County, New York. Dime Community Bancshares, Inc. was founded in 1864 and is headquartered in Brooklyn, New York.

About PDL Community Bancorp

PDL Community Bancorp provides various banking products and services primarily in the New York City metropolitan area. The company offers a range of deposit accounts, including demand, savings, and money market accounts, as well as certificates of deposit accounts; and individual retirement accounts. It also provides mortgage loans consisting of one-to-four family real estate loans, including residential owner-occupied and investor-owned, multifamily residential, and nonresidential property loans, as well as construction and land loans; commercial business and consumer loans; commercial and industrial loans; and lines of credit. In addition, the company invests in debt securities. It operates a network of 13 banking offices, which include 5 branches in Bronx, 2 branches in Manhattan, 3 branches in Queens, and 3 branches in Brooklyn, New York; and 1 branch in Union City, New Jersey. The company was formerly known as Ponce De Leon Federal Bank and changed its name to PDL Community Bancorp in September 2017. The company was founded in 1960 and is headquartered in Bronx, New York. PDL Community Bancorp is a subsidiary of Ponce Bank Mutual Holding Company.

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