Park National (PRK) & Its Peers Critical Review

Park National (NYSE:PRK) is one of 919 public companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Park National to similar businesses based on the strength of its dividends, risk, valuation, profitability, earnings, institutional ownership and analyst recommendations.

Valuation and Earnings

This table compares Park National and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Park National	$659.59 million	$151.42 million	16.06
Park National Competitors	$37.92 billion	$2.42 billion	17.48

Park National’s competitors have higher revenue and earnings than Park National. Park National is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Park National pays an annual dividend of $4.40 per share and has a dividend yield of 2.4%. Park National pays out 38.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.0% and pay out 28.9% of their earnings in the form of a dividend. Park National has increased its dividend for 8 consecutive years. Park National lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Park National and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Park National	23.46%	12.31%	1.50%
Park National Competitors	15.64%	9.43%	0.93%

Risk & Volatility

Park National has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Park National’s competitors have a beta of 0.61, suggesting that their average share price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Park National and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park National	0	5	0	0	2.00
Park National Competitors	7470	30199	27763	1466	2.35

Park National presently has a consensus price target of $196.50, suggesting a potential upside of 7.55%. As a group, “Banks” companies have a potential upside of 13.58%. Given Park National’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Park National has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

62.7% of Park National shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are owned by institutional investors. 2.2% of Park National shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned 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.

Summary

Park National competitors beat Park National on 9 of the 15 factors compared.

About Park National

Park National Corporation operates as the bank holding company for Park National Bank that provides commercial banking and trust services in small and medium population areas. The company offers deposits for demand, savings, and time accounts; trust and wealth management services; cash management services; safe deposit operations; electronic funds transfers; Internet and mobile banking solutions with bill pay service; credit cards; and various additional banking-related services. It also provides commercial loans, including financing for industrial and commercial properties, financing for equipment, inventory and accounts receivable, acquisition financing, and commercial leasing, as well as for consumer finance companies; commercial real estate loans comprising mortgage loans to developers and owners of commercial real estate; originates financing leases primarily for the purchase of commercial vehicles, operating/manufacturing equipment, and municipal vehicles/equipment; consumer loans, such as automobile loans; consumer finance services; home equity lines of credit; and residential real estate and construction loans, as well as installment loans and commercial loans. In addition, the company offers aircraft financing services; and ParkDirect, a personal banking application. Park National Corporation was founded in 1908 and is headquartered in Newark, Ohio.