ST BK CORP/SH SH (OTCMKTS:SBAZ) and Peapack-Gladstone Financial (NASDAQ:PGC) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Insider and Institutional Ownership

72.1% of Peapack-Gladstone Financial shares are held by institutional investors. 4.1% of Peapack-Gladstone Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares ST BK CORP/SH SH and Peapack-Gladstone Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ST BK CORP/SH SH $30.97 million 3.39 $8.58 million N/A N/A
Peapack-Gladstone Financial $203.88 million 2.56 $44.17 million $2.31 11.70

Peapack-Gladstone Financial has higher revenue and earnings than ST BK CORP/SH SH.

Dividends

ST BK CORP/SH SH pays an annual dividend of $0.30 per share and has a dividend yield of 2.3%. Peapack-Gladstone Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. Peapack-Gladstone Financial pays out 8.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ST BK CORP/SH SH and Peapack-Gladstone Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ST BK CORP/SH SH 0 0 0 0 N/A
Peapack-Gladstone Financial 0 1 2 0 2.67

Peapack-Gladstone Financial has a consensus price target of $36.50, suggesting a potential upside of 35.09%. Given Peapack-Gladstone Financial’s higher possible upside, analysts clearly believe Peapack-Gladstone Financial is more favorable than ST BK CORP/SH SH.

Profitability

This table compares ST BK CORP/SH SH and Peapack-Gladstone Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ST BK CORP/SH SH 27.71% 14.10% 1.34%
Peapack-Gladstone Financial 21.67% 9.91% 1.00%

Risk & Volatility

ST BK CORP/SH SH has a beta of 0.03, suggesting that its stock price is 97% less volatile than the S&P 500. Comparatively, Peapack-Gladstone Financial has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

ST BK CORP/SH SH Company Profile

State Bank Corp. engages in the provision of deposit and loan products through its subsidiary. It offers its products to individuals, businesses and professionals throughout Arizona. The company was founded in 2004 and is headquartered in Lake Havasu City, AZ.

Peapack-Gladstone Financial Company Profile

Peapack-Gladstone Financial Corporation operates as the bank holding company for Peapack-Gladstone Bank that provides private banking and wealth management services in the United States. The company operates in two segments, Banking and Private Wealth Management. It offers checking and savings accounts, money market and interest-bearing checking accounts, certificates of deposit, and individual retirement accounts. The company also provides working capital lines of credit, term loans for fixed asset acquisitions, commercial mortgages, multi-family mortgages, and other forms of asset-based financing services; and residential mortgages, home equity lines of credit, and other second mortgage loans. In addition, it offers asset management services; personal trust services, including services as executor, trustee, administrator, custodian, and guardian; and other financial planning, tax preparation, and advisory services. Further, the company operates automated teller machines at 24 locations; and provides telephone and Internet banking, merchant credit card, and customer support sales services. Its private banking clients include businesses, non-profits, and consumers; and wealth management clients comprise individuals, families, foundations, endowments, trusts, and estates. The company operates its private banking locations in Bedminster, Morristown, Princeton, and Teaneck, New Jersey; and wealth management branches in Somerset, Morris, Hunterdon, and Union counties. Peapack-Gladstone Financial Corporation was founded in 1921 and is based in Bedminster, New Jersey.

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