Northwest Bancshares (NASDAQ: NWBI – Get Rating) and Peoples Financial Services (NASDAQ: PFIS – Get Rating) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.
Insider & Institutional Ownership:
61.2% of Northwest Bancshares shares are owned by institutional investors. Comparatively, 29.3% of Peoples Financial Services shares are owned by institutional investors. 1.0% of Northwest Bancshares shares are owned by insiders. Comparatively, 3.3% of Peoples Financial Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Northwest Bancshares pays an annual dividend of $ 0.80 per share and has a dividend yield of 6.3%. Peoples Financial Services pays an annual dividend of $ 1.56 per share and has a dividend yield of 3.0%. Northwest Bancshares pays out 72.1% of its earnings in the form of a dividend. Peoples Financial Services pays out 25.8% 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. Northwest Bancshares has raised its dividend for 13 consecutive years and Peoples Financial Services has raised its dividend for 6 consecutive years. Northwest Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Northwest Bancshares and Peoples Financial Services’ net margins, return on equity and return on assets.
|Net Margins:||Return on Equity:||Return on Assets:|
|Peoples Financial Services:||36.18%||10.38%||1.05%|
Earnings and Valuation:
This table compares Northwest Bancshares and Peoples Financial Services’ top-line revenue, earnings per share and valuation.
|Gross Revenue:||Price / Sales Ratio:||Net Income:||Earnings Per Share:||Price / Earnings Ratio:|
|Northwest Bancshares:||$ 561.40 million:||2.84:||$ 154.32 million:||$ 1.11:||11.35:|
|Peoples Financial Services:||$ 119.69 million:||3.15:||$ 43.52 million:||$ 6.05:||8.69:|
Northwest Bancshares has higher revenue and earnings than Peoples Financial Services. Peoples Financial Services is trading at a lower price-to-earnings ratio than Northwest Bancshares, indicating that it is currently the most affordable of the two stocks.
This is a summary of recent ratings and price targets for Northwest Bancshares and Peoples Financial Services, as provided by MarketBeat.
|Sell Ratings:||Hold Ratings:||Buy Ratings:||Strong Buy Ratings:||Rating Score:|
|Peoples Financial Services:||0:||0:||1:||0:||3.00:|
Northwest Bancshares currently has a consensus price target of $ 13.01, indicating a potential upside of 3.23%. Peoples Financial Services has a consensus price target of $ 57.00, indicating a potential upside of 8.37%. Given Peoples Financial Services’ stronger consensus rating and higher possible upside, analysts plainly believe Peoples Financial Services is more favorable than Northwest Bancshares.
Volatility & Risk:
Northwest Bancshares has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Peoples Financial Services has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.
Peoples Financial Services beats Northwest Bancshares on 10 of the 17 factors compared between the two stocks.
About Northwest Bancshares: (Get Rating)
Northwest Bancshares, Inc. operates as the holding company for Northwest Bank, a state-chartered savings bank that provides personal and business banking solutions. The company accepts various deposits, including checking, savings, money market deposit, term certificate, and individual retirement accounts. It also offers loan products comprising one-to-four-family residential real estate loans and loans collateralized by multi-family residential and commercial real estate; commercial business loans; and consumer loans, including automobile loans, sales finance loans, unsecured personal loans, credit card loans, and loans secured by deposit accounts. The company also offers investment management and trust services. As of December 31, 2021, it operated 170 community-banking locations in Pennsylvania, Western New York, Eastern Ohio, and Indiana. Northwest Bancshares, Inc. was founded in 1896 and is headquartered in Columbus, Ohio.
About Peoples Financial Services: (Get Rating)
Peoples Financial Services Corp. operates as the bank holding company for Peoples Security Bank and Trust Company that provides various commercial and retail banking services. The company accepts money market, NOW, savings, individual retirement, demand deposit, and certificates of deposit accounts. It also provides residential real estate, automobile, manufactured housing, personal, and home equity loans; and commercial real estate, working capital, construction, small business administration, and agricultural loans, as well as loans for equipment and other commercial needs, and mineral rights. In addition, the company offers investment management, IRA trustee, estate administration, living and life insurance trust, trustee under will, guardianship, custodial / IRA custodial, and corporate trust services, as well as pension and profit sharing plans. Further, it provides investment portfolio management, estate and business succession planning, annuities, insurance, retirement plan, and tax planning, as well as education funding strategies; and securities and brokerage, and investor services. Additionally, the company offers small business checking and merchant money market accounts, online and telephone banking, business credit cards, merchant line of credit, and financial checkup services; and remote deposit capture, automatic clearing house transaction, cash management, automated teller machine, point of sale transaction, safe deposit box, night depository, direct deposit, and official check services. It serves business, non-profit, governmental, municipal agency, and professional customers, as well as retail customers through 28 full-service community banking offices located in Allegheny, Bucks, Lackawanna, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, and Wyoming Counties of Pennsylvania; Middlesex County of New Jersey; and Broome County of New York. The company was founded in 1905 and is headquartered in Scranton, Pennsylvania.
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