Peapack-Gladstone Financial (NASDAQ:PGC) and NORDEA Bk AB SW/S (OTCMKTS:NRDBY) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.
This table compares Peapack-Gladstone Financial and NORDEA Bk AB SW/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|NORDEA Bk AB SW/S||29.79%||9.42%||0.55%|
Peapack-Gladstone Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. NORDEA Bk AB SW/S pays an annual dividend of $0.52 per share and has a dividend yield of 6.9%. Peapack-Gladstone Financial pays out 8.7% of its earnings in the form of a dividend. NORDEA Bk AB SW/S pays out 57.8% 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.
This is a summary of recent ratings and target prices for Peapack-Gladstone Financial and NORDEA Bk AB SW/S, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NORDEA Bk AB SW/S||0||0||0||0||N/A|
Peapack-Gladstone Financial presently has a consensus price target of $36.50, indicating a potential upside of 32.25%. Given Peapack-Gladstone Financial’s higher possible upside, analysts clearly believe Peapack-Gladstone Financial is more favorable than NORDEA Bk AB SW/S.
Earnings and Valuation
This table compares Peapack-Gladstone Financial and NORDEA Bk AB SW/S’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Peapack-Gladstone Financial||$203.88 million||2.63||$44.17 million||$2.31||11.95|
|NORDEA Bk AB SW/S||$13.11 billion||2.31||$3.63 billion||$0.90||8.32|
NORDEA Bk AB SW/S has higher revenue and earnings than Peapack-Gladstone Financial. NORDEA Bk AB SW/S is trading at a lower price-to-earnings ratio than Peapack-Gladstone Financial, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
72.1% of Peapack-Gladstone Financial shares are owned by institutional investors. Comparatively, 0.1% of NORDEA Bk AB SW/S shares are owned by institutional investors. 4.1% of Peapack-Gladstone Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
Peapack-Gladstone Financial has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, NORDEA Bk AB SW/S has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.
Peapack-Gladstone Financial beats NORDEA Bk AB SW/S on 11 of the 15 factors compared between the two stocks.
About Peapack-Gladstone Financial
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.
About NORDEA Bk AB SW/S
Nordea Bank Abp provides various banking products and services for personal customers, small and medium businesses, and corporates and financial institutions in Europe. It operates through Personal Banking, Commercial & Business Banking, Wholesale Banking, and Wealth Management segments. It offers personal banking products comprising corporate and household deposits; and household mortgage and consumer loans, as well as loans to corporates. The company also provides business banking services; transaction banking services consisting of cards, trade finance, cash management, and mobile- and ecommerce; and investment credits, working capital, and consumer credits. In addition, it offers a range of financing, cash management and payment services, investment banking, capital markets products, and securities services; manages customers' assets and provides financial advice to high net worth individuals and institutional investors; and provides a range of pension, endowment, and risk products. Further, the company offers trade finance services; and online and mobile banking services. It operates approximately 450 branches. The company was founded in 1820 and is headquartered in Helsinki, Finland.
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