Sandy Spring Bancorp (NASDAQ: SASR) and Univest Co. of Pennsylvania (NASDAQ:UVSP) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.
This table compares Sandy Spring Bancorp and Univest Co. of Pennsylvania’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sandy Spring Bancorp||21.63%||10.87%||1.14%|
|Univest Co. of Pennsylvania||19.84%||8.35%||1.02%|
73.4% of Sandy Spring Bancorp shares are owned by institutional investors. Comparatively, 66.9% of Univest Co. of Pennsylvania shares are owned by institutional investors. 2.6% of Sandy Spring Bancorp shares are owned by company insiders. Comparatively, 3.6% of Univest Co. of Pennsylvania shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Sandy Spring Bancorp pays an annual dividend of $1.04 per share and has a dividend yield of 2.8%. Univest Co. of Pennsylvania pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. Sandy Spring Bancorp pays out 47.3% of its earnings in the form of a dividend. Univest Co. of Pennsylvania pays out 48.8% 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.
Risk & Volatility
Sandy Spring Bancorp has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Univest Co. of Pennsylvania has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.
Earnings & Valuation
This table compares Sandy Spring Bancorp and Univest Co. of Pennsylvania’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sandy Spring Bancorp||$246.04 million||5.39||$53.20 million||$2.20||16.92|
|Univest Co. of Pennsylvania||$222.26 million||3.54||$44.09 million||$1.64||16.34|
Sandy Spring Bancorp has higher revenue and earnings than Univest Co. of Pennsylvania. Univest Co. of Pennsylvania is trading at a lower price-to-earnings ratio than Sandy Spring Bancorp, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for Sandy Spring Bancorp and Univest Co. of Pennsylvania, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sandy Spring Bancorp||0||3||2||0||2.40|
|Univest Co. of Pennsylvania||0||2||1||0||2.33|
Sandy Spring Bancorp presently has a consensus target price of $44.75, suggesting a potential upside of 20.20%. Univest Co. of Pennsylvania has a consensus target price of $33.33, suggesting a potential upside of 24.38%. Given Univest Co. of Pennsylvania’s higher possible upside, analysts plainly believe Univest Co. of Pennsylvania is more favorable than Sandy Spring Bancorp.
Sandy Spring Bancorp beats Univest Co. of Pennsylvania on 13 of the 16 factors compared between the two stocks.
Sandy Spring Bancorp Company Profile
Sandy Spring Bancorp, Inc. is the bank holding company for Sandy Spring Bank (the Bank). The Company operates through three segments: Community Banking, Insurance and Investment Management. The Company’s Community Banking segment operates through Sandy Spring Bank and involves delivering a range of financial products and services, including various loan and deposit products to both individuals and businesses. The Insurance segment operates through Sandy Spring Insurance Corporation, a subsidiary of the Bank, and offers annuities as an alternative to traditional deposit accounts. The Investment Management segment operates through West Financial Services, Inc., a subsidiary of the Bank, which provides investment management and financial planning services. As of December 31, 2016, the Bank conducted commercial banking business through 44 community offices and six financial centers located in Central Maryland, Northern Virginia and Washington D.C.
Univest Co. of Pennsylvania Company Profile
Univest Corporation of Pennsylvania is the bank holding company of Univest Bank and Trust Co. (the Bank). The Bank is a Pennsylvania state-chartered bank and trust company. The Company’s business segments include Banking, Wealth Management and Insurance. The Banking segment provides financial services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking services and equipment lease financing. The Wealth Management segment offers trust and investment advisory services, guardian and custodian of employee benefits and other trust and brokerage services, as well as a registered investment advisory managing private investment accounts for both individuals and institutions. The Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, group life and health coverage, employee benefit solutions, personal insurance lines and human resources consulting.
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