Provident Financial Services (NYSE:PFS – Get Free Report) and Inter & Co. Inc. (NASDAQ:INTR – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.
Earnings & Valuation
This table compares Provident Financial Services and Inter & Co. Inc.”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Provident Financial Services | $1.38 billion | 2.18 | $291.16 million | $2.38 | 9.73 |
| Inter & Co. Inc. | $1.93 billion | 0.91 | $235.05 million | $0.66 | 6.00 |
Provident Financial Services has higher earnings, but lower revenue than Inter & Co. Inc.. Inter & Co. Inc. is trading at a lower price-to-earnings ratio than Provident Financial Services, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Provident Financial Services has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, Inter & Co. Inc. has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent recommendations for Provident Financial Services and Inter & Co. Inc., as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Provident Financial Services | 0 | 2 | 4 | 1 | 2.86 |
| Inter & Co. Inc. | 1 | 3 | 3 | 0 | 2.29 |
Provident Financial Services presently has a consensus price target of $26.79, indicating a potential upside of 15.66%. Inter & Co. Inc. has a consensus price target of $9.30, indicating a potential upside of 134.85%. Given Inter & Co. Inc.’s higher probable upside, analysts plainly believe Inter & Co. Inc. is more favorable than Provident Financial Services.
Profitability
This table compares Provident Financial Services and Inter & Co. Inc.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Provident Financial Services | 21.73% | 10.82% | 1.22% |
| Inter & Co. Inc. | 11.23% | 14.94% | 1.57% |
Insider & Institutional Ownership
72.0% of Provident Financial Services shares are held by institutional investors. Comparatively, 22.9% of Inter & Co. Inc. shares are held by institutional investors. 3.0% of Provident Financial Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Dividends
Provident Financial Services pays an annual dividend of $0.96 per share and has a dividend yield of 4.1%. Inter & Co. Inc. pays an annual dividend of $0.11 per share and has a dividend yield of 2.8%. Provident Financial Services pays out 40.3% of its earnings in the form of a dividend. Inter & Co. Inc. pays out 16.7% 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.
Summary
Provident Financial Services beats Inter & Co. Inc. on 11 of the 17 factors compared between the two stocks.
About Provident Financial Services
Provident Financial Services, Inc. is the bank holding company for Provident Bank, a community-focused financial institution. The bank traces its history to 1839, when it was established in Jersey City, New Jersey. Provident Bank provides personal and business banking services, including deposit accounts, residential mortgages, consumer loans and commercial lending. It also offers wealth management, trust and fiduciary services. The company primarily serves customers in New Jersey and the surrounding New York metropolitan region, with operations extending into eastern Pennsylvania.
About Inter & Co. Inc.
Inter & Co. Inc. is a digital financial services company whose platform is centered on Banco Inter, a Brazilian digital bank. The company offers banking services such as accounts, payments, credit and debit cards, lending, and financial products, including investment and insurance offerings. Its broader digital platform also includes shopping and lifestyle services, as well as tools for customers making international transactions. Inter serves customers primarily in Brazil and has expanded its offerings to include services for clients in the United States.
Receive News & Ratings for Provident Financial Services Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Provident Financial Services and related companies with MarketBeat.com's FREE daily email newsletter.
