Head-To-Head Review: Parke Bancorp (NASDAQ:PKBK) & Univest Corporation of Pennsylvania (NASDAQ:UVSP)

Univest Corporation of Pennsylvania (NASDAQ:UVSP) and Parke Bancorp (NASDAQ:PKBK) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.

Profitability

This table compares Univest Corporation of Pennsylvania and Parke Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Univest Corporation of Pennsylvania	18.25%	10.19%	1.15%
Parke Bancorp	28.04%	13.02%	1.90%

Dividends

Univest Corporation of Pennsylvania pays an annual dividend of $0.92 per share and has a dividend yield of 2.1%. Parke Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.5%. Univest Corporation of Pennsylvania pays out 27.6% of its earnings in the form of a dividend. Parke Bancorp pays out 22.9% 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. Univest Corporation of Pennsylvania has increased its dividend for 1 consecutive years. Parke Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Univest Corporation of Pennsylvania and Parke Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Univest Corporation of Pennsylvania	$518.35 million	2.35	$90.76 million	$3.33	13.15
Parke Bancorp	$146.08 million	2.60	$37.78 million	$3.50	9.26

Univest Corporation of Pennsylvania has higher revenue and earnings than Parke Bancorp. Parke Bancorp is trading at a lower price-to-earnings ratio than Univest Corporation of Pennsylvania, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Univest Corporation of Pennsylvania has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Parke Bancorp has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.

Institutional and Insider Ownership

75.1% of Univest Corporation of Pennsylvania shares are held by institutional investors. Comparatively, 49.7% of Parke Bancorp shares are held by institutional investors. 1.8% of Univest Corporation of Pennsylvania shares are held by insiders. Comparatively, 13.0% of Parke Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Univest Corporation of Pennsylvania and Parke Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Univest Corporation of Pennsylvania	0	3	1	0	2.25
Parke Bancorp	0	0	1	0	3.00

Univest Corporation of Pennsylvania currently has a consensus target price of $37.00, indicating a potential downside of 15.51%. Given Univest Corporation of Pennsylvania’s higher possible upside, analysts clearly believe Univest Corporation of Pennsylvania is more favorable than Parke Bancorp.

Summary

Parke Bancorp beats Univest Corporation of Pennsylvania on 9 of the 16 factors compared between the two stocks.

About Univest Corporation of Pennsylvania

Univest Financial Corporation operates as the bank holding company for Univest Bank and Trust Co. that provides banking products and services primarily in the United States. It operates through three segments: Banking, Wealth Management, and Insurance. The Banking segment offers a range of banking services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking, and equipment lease financing services for individuals, businesses, municipalities, and nonprofit organizations. Its Wealth Management segment provides investment advisory, financial planning, and trust and brokerage services for private families and individuals, municipal pension plans, retirement plans, and trusts and guardianships. The Insurance segment offers commercial property and casualty insurance, employee benefits solutions, personal insurance lines, and human resources consulting services. The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. The company was founded in 1876 and is headquartered in Souderton, Pennsylvania.

About Parke Bancorp

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.