People’s United Financial (NASDAQ:PBCT) and Southern Banc (OTCMKTS:SRNN) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.
Risk and Volatility
People’s United Financial has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Southern Banc has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.
75.9% of People’s United Financial shares are owned by institutional investors. 2.4% of People’s United Financial shares are owned by company insiders. Comparatively, 22.0% of Southern Banc shares are owned by company 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.
People’s United Financial pays an annual dividend of $0.71 per share and has a dividend yield of 4.6%. Southern Banc does not pay a dividend. People’s United Financial pays out 54.2% of its earnings in the form of a dividend. People’s United Financial has raised its dividend for 12 consecutive years.
Earnings & Valuation
This table compares People’s United Financial and Southern Banc’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|People’s United Financial||$1.92 billion||3.22||$468.10 million||$1.31||11.88|
|Southern Banc||$5.53 million||N/A||-$560,000.00||N/A||N/A|
People’s United Financial has higher revenue and earnings than Southern Banc.
This is a summary of recent ratings and recommmendations for People’s United Financial and Southern Banc, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|People’s United Financial||0||4||1||0||2.20|
People’s United Financial presently has a consensus target price of $19.88, indicating a potential upside of 27.73%. Given People’s United Financial’s higher possible upside, research analysts plainly believe People’s United Financial is more favorable than Southern Banc.
This table compares People’s United Financial and Southern Banc’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|People’s United Financial||23.64%||8.16%||1.06%|
People’s United Financial beats Southern Banc on 11 of the 13 factors compared between the two stocks.
About People’s United Financial
People's United Financial, Inc. operates as the bank holding company for People's United Bank, National Association that provides commercial banking, retail banking, and wealth management services to individual, corporate, and municipal customers. The company operates in two segments, Commercial Banking and Retail Banking. The Commercial Banking segment offers commercial real estate lending, commercial and industrial lending, and commercial deposit gathering services. This segment also provides equipment financing; cash management, correspondent banking, and municipal banking services; and institutional trust, corporate trust, private banking, and commercial insurance services. The Retail Banking segment offers consumer lending, including residential mortgage and home equity lending; and consumer deposit gathering services. This segment also provides brokerage, financial advisory, investment management, life insurance, and non-institutional trust services. In addition, the company offers online banking, investment trading, and telephone banking services. It operates through a network of 422 branches in Connecticut, southeastern New York, Massachusetts, Vermont, Maine, and New Hampshire, as well as 607 ATMs. The company was founded in 1842 and is headquartered in Bridgeport, Connecticut.
About Southern Banc
The Southern Banc Company, Inc. operates as the holding company for The Southern Bank Company that provides various banking products and services in Alabama. Its personal banking products include checking accounts, home mortgage loans, home equity loans, auto loans, and personal loans. The company's business banking products comprise business checking accounts, cash flow management, real estate lending, and equipment financing. It also offers commercial accounts, accounts receivable management, factoring services, and online banking and ATM services. The company operates through four full service banking offices located in Gadsden, Albertville, Guntersville, and Centre, as well as through one commercial finance office located in Birmingham. The Southern Banc Company, Inc. was founded in 1936 and is based in Gadsden, Alabama.
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