Chiba Bank (OTCMKTS:CHBAY) versus Provident Financial Services (NYSE:PFS) Financial Review

Chiba Bank (OTCMKTS:CHBAY) and Provident Financial Services (NYSE:PFS) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Profitability

This table compares Chiba Bank and Provident Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chiba Bank	20.96%	8.25%	0.49%
Provident Financial Services	22.15%	11.00%	1.24%

Valuation & Earnings

This table compares Chiba Bank and Provident Financial Services”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chiba Bank	$2.96 billion	4.73	$620.82 million	$4.72	19.12
Provident Financial Services	$1.38 billion	2.18	$291.16 million	$2.40	9.65

Chiba Bank has higher revenue and earnings than Provident Financial Services. Provident Financial Services is trading at a lower price-to-earnings ratio than Chiba Bank, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Chiba Bank has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500. Comparatively, Provident Financial Services has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Dividends

Chiba Bank pays an annual dividend of $1.23 per share and has a dividend yield of 1.4%. Provident Financial Services pays an annual dividend of $0.96 per share and has a dividend yield of 4.1%. Chiba Bank pays out 26.1% of its earnings in the form of a dividend. Provident Financial Services pays out 40.0% 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for Chiba Bank and Provident Financial Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chiba Bank	0	0	0	1	4.00
Provident Financial Services	0	3	4	1	2.75

Provident Financial Services has a consensus price target of $26.79, suggesting a potential upside of 15.71%. Given Provident Financial Services’ higher possible upside, analysts plainly believe Provident Financial Services is more favorable than Chiba Bank.

Institutional & Insider Ownership

72.0% of Provident Financial Services shares are owned by institutional investors. 3.0% of Provident Financial Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Provident Financial Services beats Chiba Bank on 9 of the 16 factors compared between the two stocks.

About Chiba Bank

The Chiba Bank, Ltd., together with its subsidiaries, provides banking products and services in Japan and internationally. The company offers various deposit products, including savings, time deposits, currency deposits, investment trusts, bonds, and pensions; loans, which include mortgages, renovation loans, photovoltaic, vehicle, education, and other loan products; and insurance products, such as annuity, life, medical, student, death, and travel insurance. It also offers debit and credit cards, as well as internet banking services. In addition, the company engages in securities, investment management and advisory, software development, commissioned computation tasks, research and investigation of IT and financial technologies, leasing, operation, and management of investment funds, mergers and acquisition advisory, credit guarantee businesses, management and collection of claims businesses. Further, it provides loan guarantees and fee collection services; accounting, general administration entrustment, and temporary staff services; and is involved in outsourcing of operational business. Additionally, it rents and maintains office buildings and welfare facilities; provides research, survey, and consulting services; purchases and sells supplies and consumer goods; and engages in renewable energy generation. The company serves individuals and corporations. The Chiba Bank, Ltd. was incorporated in 1943 and is headquartered in Chiba City, Japan.

About Provident Financial Services

Provident Financial Services, Inc. operates as the bank holding company for Provident Bank that provides various banking products and services to individuals, families, and businesses in the United States. Its deposit products include savings, checking, interest-bearing checking, money market deposit, and certificate of deposit accounts, as well as IRA products. The company's loan portfolio comprises commercial real estate loans that are secured by properties, such as multi-family apartment buildings, office buildings, retail and industrial properties, and office buildings; commercial business loans; fixed-rate and adjustable-rate mortgage loans collateralized by one- to four-family residential real estate properties; commercial construction loans; and consumer loans consisting of home equity loans, home equity lines of credit, personal loans and unsecured lines of credit, and auto and recreational vehicle loans. It also offers cash management, remote deposit capture, payroll origination, escrow account management, and online and mobile banking services; and business credit cards. In addition, the company provides wealth management services comprising investment management, trust and estate administration, financial planning, and tax compliance and planning. Further, it sells insurance and investment products, including annuities; operates as a real estate investment trust for acquiring mortgage loans and other real estate related assets; and manages and sells real estate properties acquired through foreclosure. The company was founded in 1839 and is headquartered in Jersey City, New Jersey.