Head-To-Head Contrast: Hancock Whitney (NASDAQ:HWC) and Peapack-Gladstone Financial (NASDAQ:PGC)

Peapack-Gladstone Financial (NASDAQ:PGC) and Hancock Whitney (NASDAQ:HWC) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Earnings & Valuation

This table compares Peapack-Gladstone Financial and Hancock Whitney”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peapack-Gladstone Financial	$444.61 million	1.83	$37.33 million	$3.33	13.78
Hancock Whitney	$2.02 billion	2.84	$486.07 million	$4.97	14.38

Hancock Whitney has higher revenue and earnings than Peapack-Gladstone Financial. Peapack-Gladstone Financial is trading at a lower price-to-earnings ratio than Hancock Whitney, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Peapack-Gladstone Financial has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Hancock Whitney has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Dividends

Peapack-Gladstone Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. Hancock Whitney pays an annual dividend of $2.00 per share and has a dividend yield of 2.8%. Peapack-Gladstone Financial pays out 6.0% of its earnings in the form of a dividend. Hancock Whitney pays out 40.2% 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. Hancock Whitney has increased its dividend for 3 consecutive years. Hancock Whitney is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

72.8% of Peapack-Gladstone Financial shares are owned by institutional investors. Comparatively, 81.2% of Hancock Whitney shares are owned by institutional investors. 5.8% of Peapack-Gladstone Financial shares are owned by insiders. Comparatively, 0.9% of Hancock Whitney shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Peapack-Gladstone Financial and Hancock Whitney, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peapack-Gladstone Financial	0	2	3	0	2.60
Hancock Whitney	0	3	7	1	2.82

Peapack-Gladstone Financial currently has a consensus target price of $56.33, indicating a potential upside of 22.73%. Hancock Whitney has a consensus target price of $84.56, indicating a potential upside of 18.29%. Given Peapack-Gladstone Financial’s higher probable upside, analysts plainly believe Peapack-Gladstone Financial is more favorable than Hancock Whitney.

Profitability

This table compares Peapack-Gladstone Financial and Hancock Whitney’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peapack-Gladstone Financial	12.69%	9.12%	0.79%
Hancock Whitney	20.51%	11.65%	1.40%

Summary

Hancock Whitney beats Peapack-Gladstone Financial on 15 of the 18 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 Hancock Whitney

Hancock Whitney Corporation operates as the financial holding company for Hancock Whitney Bank that provides traditional and online banking services to commercial, small business, and retail customers. It offers various transaction and savings deposit products consisting of brokered deposits, time deposits, and money market accounts; treasury management services, secured and unsecured loan products including revolving credit facilities, and letters of credit and similar financial guarantees; and trust and investment management services to retirement plans, corporations, and individuals, and investment advisory and brokerage products. The company also provides commercial and industrial loans including real and non-real estate loans; construction and land development loans; and residential mortgages, as well as consumer loans. In addition, it offers commercial finance products to middle market and corporate clients, including leases and related structures; facilitates investments in new market tax credit activities and holding certain foreclosed assets; provides customers access to fixed annuity and life insurance products; and underwriting transactions products, as well as debt and mortgage-related securities. The company was founded in 1899 and is headquartered in Gulfport, Mississippi.