Peoples Financial (OTCMKTS:PFBX – Get Free Report) and Popular (NASDAQ:BPOP – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.
Earnings and Valuation
This table compares Peoples Financial and Popular”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Peoples Financial | $35.66 million | 2.72 | $3.91 million | $0.85 | 24.72 |
| Popular | $3.05 billion | 2.78 | $833.16 million | $12.32 | 10.55 |
Dividends
Peoples Financial pays an annual dividend of $0.36 per share and has a dividend yield of 1.7%. Popular pays an annual dividend of $3.00 per share and has a dividend yield of 2.3%. Peoples Financial pays out 42.4% of its earnings in the form of a dividend. Popular pays out 24.4% 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. Popular has raised its dividend for 6 consecutive years. Popular is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Peoples Financial and Popular’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Peoples Financial | 10.97% | 3.99% | 0.50% |
| Popular | 18.75% | 13.70% | 1.10% |
Volatility and Risk
Peoples Financial has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500. Comparatively, Popular has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500.
Insider and Institutional Ownership
32.8% of Peoples Financial shares are held by institutional investors. Comparatively, 87.3% of Popular shares are held by institutional investors. 28.1% of Peoples Financial shares are held by company insiders. Comparatively, 2.1% of Popular shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations and price targets for Peoples Financial and Popular, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Peoples Financial | 0 | 0 | 0 | 0 | 0.00 |
| Popular | 0 | 1 | 10 | 1 | 3.00 |
Popular has a consensus price target of $156.55, suggesting a potential upside of 20.40%. Given Popular’s stronger consensus rating and higher possible upside, analysts plainly believe Popular is more favorable than Peoples Financial.
Summary
Popular beats Peoples Financial on 16 of the 18 factors compared between the two stocks.
About Peoples Financial
Peoples Financial Corporation operates as the bank holding company for The Peoples Bank that provides banking, financial, and trust services to government entities, individuals, and small and commercial businesses in Mississippi. The company accepts various deposits, such as interest and non-interest-bearing checking accounts, savings accounts, certificates of deposit, and individual retirement accounts (IRAs). It offers business, commercial, real estate, construction, personal, and installment loans; and personal trust, agencies, and estate services, including living and testamentary trusts, executorships, guardianships, and conservatorships. In addition, the company provides self-directed IRAs; and escrow management, stock transfer, and bond paying agency accounts to corporate customers. Further, it offers other services consisting of safe deposit box rental, wire transfer, night drop facilities, collection, cash management, and Internet banking services. the company provides services to customers of various industries, such as seafood, retail, hospitality, hotel/motel, gaming, and construction. Peoples Financial Corporation was founded in 1896 and is headquartered in Biloxi, Mississippi.
About Popular
Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking products and services in Puerto Rico, the United States, and the British Virgin Islands. The company provides savings, NOW, money market, and other interest-bearing demand accounts; non-interest bearing demand deposits; and certificates of deposit. It also offers commercial and industrial, commercial multi-family, commercial real estate, and residential mortgage loans; consumer loans, including personal loans, credit cards, automobile loans, home equity lines of credit, and other loans to individual borrowers; construction loans; and lease financing comprising automobile loans/leases. In addition, the company provides investment banking, auto and equipment leasing and financing, broker-dealer, and insurance services; debit cards; and online banking services. Popular, Inc. was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.
Receive News & Ratings for Peoples Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Peoples Financial and related companies with MarketBeat.com's FREE daily email newsletter.
