Critical Contrast: Peoples Bancorp (NASDAQ:PEBO) and Bancorp (NASDAQ:TBBK)

Peoples Bancorp (NASDAQ:PEBO) and Bancorp (NASDAQ:TBBK) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Earnings & Valuation

This table compares Peoples Bancorp and Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peoples Bancorp	$618.38 million	2.23	$106.78 million	$3.39	11.29
Bancorp	$879.70 million	2.20	$228.21 million	$5.67	8.54

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

Volatility and Risk

Peoples Bancorp has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Bancorp has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Insider and Institutional Ownership

60.7% of Peoples Bancorp shares are held by institutional investors. Comparatively, 96.2% of Bancorp shares are held by institutional investors. 3.3% of Peoples Bancorp shares are held by insiders. Comparatively, 6.0% of Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Peoples Bancorp	19.76%	11.08%	1.41%
Bancorp	28.50%	34.29%	2.51%

Analyst Ratings

This is a summary of current ratings and price targets for Peoples Bancorp and Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peoples Bancorp	0	2	3	1	2.83
Bancorp	1	2	5	0	2.50

Peoples Bancorp presently has a consensus target price of $42.00, suggesting a potential upside of 9.75%. Bancorp has a consensus target price of $62.25, suggesting a potential upside of 28.62%. Given Bancorp’s higher possible upside, analysts plainly believe Bancorp is more favorable than Peoples Bancorp.

Summary

Bancorp beats Peoples Bancorp on 11 of the 15 factors compared between the two stocks.

About Peoples Bancorp

Peoples Bancorp Inc. is a financial holding company headquartered in Marietta, Ohio. Its principal subsidiary, Peoples Bank, provides commercial and consumer banking services to individuals, businesses and local organizations. The company offers deposit accounts, loans, payment services and other banking products, along with services such as wealth management, insurance and equipment financing. Its branches and service areas extend across Ohio, West Virginia, Kentucky and Virginia. Peoples traces its history to 1902, when it was established in Marietta.

About Bancorp

The Bancorp, Inc. is a financial holding company based in Wilmington, Delaware. Through its subsidiary, The Bancorp Bank, National Association, it provides banking and financial services primarily to businesses and other organizations rather than operating a traditional branch-focused consumer bank. The company’s services include payment and card programs, such as prepaid and debit card solutions, along with payment processing and banking services for fintech companies and other partners. Its lending activities include specialty financing for businesses and individuals.