Head-To-Head Review: City (NASDAQ:CHCO) & Parke Bancorp (NASDAQ:PKBK)

City (NASDAQ:CHCO) and Parke Bancorp (NASDAQ:PKBK) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.

Institutional & Insider Ownership

72.4% of City shares are held by institutional investors. Comparatively, 49.7% of Parke Bancorp shares are held by institutional investors. 1.8% of City shares are held by company insiders. Comparatively, 13.0% of Parke Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

City has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Parke Bancorp has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Dividends

City pays an annual dividend of $3.48 per share and has a dividend yield of 2.4%. Parke Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.3%. City pays out 38.1% of its earnings in the form of a dividend. Parke Bancorp pays out 20.8% 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. City has increased its dividend for 6 consecutive years. City is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings and price targets for City and Parke Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
City	0	3	0	1	2.50
Parke Bancorp	0	0	1	0	3.00

City presently has a consensus price target of $136.50, indicating a potential downside of 5.18%. Given City’s higher probable upside, equities analysts clearly believe City is more favorable than Parke Bancorp.

Valuation and Earnings

This table compares City and Parke Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
City	$398.98 million	5.07	$130.49 million	$9.14	15.75
Parke Bancorp	$90.62 million	4.51	$37.78 million	$3.84	9.04

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

Profitability

This table compares City and Parke Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
City	32.58%	16.34%	1.95%
Parke Bancorp	29.99%	13.88%	2.05%

Summary

City beats Parke Bancorp on 13 of the 18 factors compared between the two stocks.

About City

City Holding Company operates as a holding company for City National Bank of West Virginia that provides various banking, trust, and investment management, and other financial solutions in the United States. The company offers checking, savings, and money market accounts, as well as certificates of deposit and individual retirement accounts. It also provides commercial and industrial loans that consist of loans to corporate and other legal entity borrowers primarily in small to mid-size industrial and commercial companies; commercial real estate loans comprising commercial mortgages, which are secured by nonresidential and multi-family residential properties; residential real estate loans to consumers for the purchase or refinance of residence; first-priority home equity loans; home equity lines of credit; amortized home equity loans; consumer loans that are secured and unsecured by automobiles, boats, recreational vehicles, certificates of deposit, and other personal property; and demand deposit account overdrafts, as well as owner-occupied real estate and construction, land development, and lines of credit. In addition, the company offers mortgage banking services, including fixed and adjustable-rate mortgages, construction financing, land loans, production of conventional and government-insured mortgages, secondary marketing, and mortgage servicing. Further, it provides deposit services for commercial customers comprising treasury management, lockbox, and other cash management services; merchant credit card services; wealth management, trust, investment, and custodial services for commercial and individual customers; and corporate trust and institutional custody, financial and estate planning, and retirement plan services, as well as automated-teller-machine, interactive-teller-machine, mobile banking, interactive voice response systems, and credit and debit card services. City Holding Company was founded in 1957 and is headquartered in Charleston, West Virginia.

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.