Shore Community Bank (OTCMKTS:SHRC) & Peapack-Gladstone Financial (NASDAQ:PGC) Critical Review

Peapack-Gladstone Financial (NASDAQ:PGC) and Shore Community Bank (OTCMKTS:SHRC) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Institutional & Insider Ownership

72.8% of Peapack-Gladstone Financial shares are held by institutional investors. 7.6% of Peapack-Gladstone Financial shares are held by company 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Peapack-Gladstone Financial and Shore Community Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peapack-Gladstone Financial	0	2	1	1	2.75
Shore Community Bank	0	0	0	0	0.00

Peapack-Gladstone Financial currently has a consensus price target of $37.00, suggesting a potential upside of 42.42%. Given Peapack-Gladstone Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Peapack-Gladstone Financial is more favorable than Shore Community Bank.

Earnings and Valuation

This table compares Peapack-Gladstone Financial and Shore Community Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peapack-Gladstone Financial	$265.55 million	1.73	$32.99 million	$1.94	13.39
Shore Community Bank	N/A	N/A	N/A	N/A	N/A

Peapack-Gladstone Financial has higher revenue and earnings than Shore Community Bank.

Profitability

This table compares Peapack-Gladstone Financial and Shore Community Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peapack-Gladstone Financial	7.62%	5.25%	0.46%
Shore Community Bank	N/A	N/A	N/A

Summary

Peapack-Gladstone Financial beats Shore Community Bank on 10 of the 10 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 Peapack Private. 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 corporate and industrial (C&I) and equipment finance, commercial real estate, multifamily, residential, and consumer lending activities; treasury management services; C&I advisory services; escrow management; deposit generation; investment 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 provides telephone and Internet banking, merchant credit card, and customer support sales services. Its private banking clients include businesses, non-profits, and consumers; wealth management clients comprise individuals, families, foundations, endowments, trusts, and estates; and commercial loan clients include business owners, professionals, retailers, contractors, and real estate investors. The company operates its private banking locations in Bedminster, Morristown, Princeton, and Teaneck, New Jersey; and branches in Somerset, Morris, Hunterdon, and Union counties, as well as operates automated teller machines. Peapack-Gladstone Financial Corporation was founded in 1921 and is headquartered in Bedminster, New Jersey.

About Shore Community Bank

Shore Community Bank, a state chartered bank, provides banking products and services to businesses and individuals in Ocean County, New Jersey. The company's deposit products include checking accounts, savings accounts, certificates of deposit, individual retirement accounts, money market accounts, visa/mastercard merchant deposit accounts, and payroll/direct deposit accounts. Its loan portfolio comprises personal, home equity, term, and demand loans; lines of credit; letters of credit; commercial mortgages; and construction lending. The company also offers direct deposit and electronic transfer, wire transfer, ACH origination, night depository, tenant rent security, signature guarantee, remote deposit, notary, and automated asset management services; safe deposit boxes, escrow accounts, and debit cards, as well as online and telephone banking services. As of April 28, 2016, it operated five banking offices located in Toms River, Jackson, and Manahawkin, New Jersey. Shore Community Bank was incorporated in 1996 and is headquartered in Toms River, New Jersey.