People's United Financial (NASDAQ: PBCT) and Clifton Bancorp (NASDAQ:CSBK) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.
Institutional and Insider Ownership
76.1% of People's United Financial shares are owned by institutional investors. Comparatively, 58.7% of Clifton Bancorp shares are owned by institutional investors. 2.5% of People's United Financial shares are owned by insiders. Comparatively, 6.3% of Clifton Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares People's United Financial and Clifton Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|People's United Financial||20.37%||6.69%||0.84%|
Risk and Volatility
People's United Financial has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Clifton Bancorp has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500.
People's United Financial pays an annual dividend of $0.69 per share and has a dividend yield of 3.8%. Clifton Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.6%. People's United Financial pays out 71.1% of its earnings in the form of a dividend. Clifton Bancorp pays out 109.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Clifton Bancorp has increased its dividend for 11 consecutive years. People's United Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of recent ratings and recommmendations for People's United Financial and Clifton Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|People's United Financial||2||4||0||0||1.67|
People's United Financial presently has a consensus target price of $19.63, suggesting a potential upside of 7.53%. Clifton Bancorp has a consensus target price of $17.00, suggesting a potential upside of 10.17%. Given Clifton Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Clifton Bancorp is more favorable than People's United Financial.
Valuation & Earnings
This table compares People's United Financial and Clifton Bancorp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|People's United Financial||$1.66 billion||3.83||$337.20 million||$0.97||18.81|
|Clifton Bancorp||$42.39 million||8.04||$4.72 million||$0.22||70.14|
People's United Financial has higher revenue and earnings than Clifton Bancorp. People's United Financial is trading at a lower price-to-earnings ratio than Clifton Bancorp, indicating that it is currently the more affordable of the two stocks.
People's United Financial beats Clifton Bancorp on 10 of the 17 factors compared between the two stocks.
People's United Financial Company Profile
People’s United Financial, Inc. is a bank holding company and a financial holding company of People’s United Bank (the Bank). The Bank is engaged in providing commercial banking, retail banking and wealth management services to individual, corporate and municipal customers. The Company operates through two segments: Commercial Banking and Retail Banking. Commercial Banking segment is engaged in commercial real estate lending, commercial and industrial lending, and commercial deposit gathering activities. It offers cash management, correspondent banking, municipal banking, institutional trust services, corporate trust, insurance services and private banking, among others. Retail Banking segment provides consumer lending (including residential mortgage and home equity lending) and consumer deposit gathering activities. The Retail Banking segment also includes brokerage, financial advisory services, investment management services, and life insurance and non-institutional trust services.
Clifton Bancorp Company Profile
Clifton Bancorp Inc, formerly Clifton Savings Bancorp, Inc., is a savings and loan holding company that operates through its subsidiary, Clifton Savings Bank (Clifton Savings). Clifton Savings is a federally chartered savings bank. Clifton Savings operate as a community-oriented financial institution offering traditional financial services to consumers and businesses in the market area. It attracts deposits from the general public and uses those funds to originate one- to four-family, multi-family and commercial real estate, and consumer loans, which it holds for investment. Clifton Savings has one wholly owned subsidiary, Botany Inc., an investment company. In addition to the main office located in Passaic County, Clifton Savings operates 11 branch offices in Bergen and Passaic Counties, which, along with Essex, Morris, Hudson and Union Counties are its primary market area.
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