Popular (NASDAQ:BPOP – Get Free Report) is one of 920 public companies in the “Banks” industry, but how does it contrast to its competitors? We will compare Popular to related companies based on the strength of its profitability, valuation, dividends, risk, institutional ownership, earnings and analyst recommendations.
Profitability
This table compares Popular and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Popular | 22.36% | 16.08% | 1.32% |
| Popular Competitors | 15.72% | 9.53% | 0.93% |
Institutional & Insider Ownership
87.3% of Popular shares are owned by institutional investors. Comparatively, 47.7% of shares of all “Banks” companies are owned by institutional investors. 2.1% of Popular shares are owned by insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Popular and its competitors, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Popular | 0 | 1 | 11 | 1 | 3.00 |
| Popular Competitors | 7458 | 30171 | 27726 | 1451 | 2.35 |
Popular presently has a consensus target price of $186.83, indicating a potential upside of 17.53%. As a group, “Banks” companies have a potential upside of 15.75%. Given Popular’s stronger consensus rating and higher probable upside, research analysts clearly believe Popular is more favorable than its competitors.
Volatility and Risk
Popular has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Popular’s competitors have a beta of 0.61, indicating that their average stock price is 39% less volatile than the S&P 500.
Dividends
Popular pays an annual dividend of $3.60 per share and has a dividend yield of 2.3%. Popular pays out 22.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.4% and pay out 28.9% of their earnings in the form of a dividend. Popular has increased its dividend for 6 consecutive years.
Valuation and Earnings
This table compares Popular and its competitors revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Popular | $4.44 billion | $833.16 million | 10.02 |
| Popular Competitors | $13.77 billion | $2.41 billion | 16.82 |
Popular’s competitors have higher revenue and earnings than Popular. Popular 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.
Summary
Popular beats its competitors on 10 of the 15 factors compared.
About Popular
Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking products and services in Puerto Rico, the United States, and the British Virgin Islands. The company provides savings, NOW, money market, and other interest-bearing demand accounts; non-interest bearing demand deposits; and certificates of deposit. It also offers commercial and industrial, commercial multi-family, commercial real estate, and residential mortgage loans; consumer loans, including personal loans, credit cards, automobile loans, home equity lines of credit, and other loans to individual borrowers; construction loans; and lease financing comprising automobile loans/leases. In addition, the company provides investment banking, auto and equipment leasing and financing, broker-dealer, and insurance services; debit cards; and online banking services. Popular, Inc. was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.
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