Bank7 (NASDAQ:BSVN – Get Free Report) and Popular (NASDAQ:BPOP – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.
Risk & Volatility
Bank7 has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Popular has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.
Dividends
Bank7 pays an annual dividend of $1.08 per share and has a dividend yield of 2.6%. Popular pays an annual dividend of $3.00 per share and has a dividend yield of 2.2%. Bank7 pays out 24.1% of its earnings in the form of a dividend. Popular pays out 24.4% 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. Bank7 has raised its dividend for 5 consecutive years and Popular has raised its dividend for 6 consecutive years. Bank7 is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Bank7 | 31.38% | 18.21% | 2.30% |
| Popular | 18.75% | 13.70% | 1.10% |
Valuation and Earnings
This table compares Bank7 and Popular”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bank7 | $137.26 million | 2.85 | $43.07 million | $4.49 | 9.15 |
| Popular | $4.44 billion | 2.00 | $833.16 million | $12.32 | 11.10 |
Popular has higher revenue and earnings than Bank7. Bank7 is trading at a lower price-to-earnings ratio than Popular, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
23.5% of Bank7 shares are owned by institutional investors. Comparatively, 87.3% of Popular shares are owned by institutional investors. 25.8% of Bank7 shares are owned by insiders. Comparatively, 2.1% of Popular shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and target prices for Bank7 and Popular, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bank7 | 0 | 1 | 3 | 0 | 2.75 |
| Popular | 0 | 1 | 10 | 1 | 3.00 |
Bank7 currently has a consensus price target of $54.00, suggesting a potential upside of 31.48%. Popular has a consensus price target of $159.09, suggesting a potential upside of 16.29%. Given Bank7’s higher probable upside, research analysts plainly believe Bank7 is more favorable than Popular.
About Bank7
Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers. It offers commercial deposit, commercial checking, money market, and other deposit accounts; and retail deposit services, such as certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and automated teller machine access. The company also provides commercial real estate, hospitality, energy, and commercial and industrial lending services; consumer lending services to individuals for personal and household purposes comprising residential real estate loans and mortgage banking services, personal lines of credit, loans for the purchase of automobiles, and other installment loans, as well as secured and unsecured term loans and home improvement loans. It operates through a network of full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas. The company was formerly known as Haines Financial Corp. Bank7 Corp. was founded in 1901 and is headquartered in Oklahoma City, Oklahoma.
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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