Popular financial services (NASDAQ:PFIS – Get a rating) and Northwest Bancshares (NASDAQ: NWBI – Get a rating) are both small-cap finance companies, but which stock is superior? We’ll compare the two companies based on their risk strength, institutional ownership, valuation, profitability, dividends, earnings, and analyst recommendations.
Peoples Financial Services pays an annual dividend of $1.56 per share and has a dividend yield of 2.9%. Northwest Bancshares pays an annual dividend of $0.80 per share and has a dividend yield of 6.6%. Peoples Financial Services pays 25.8% of its profits as a dividend. Northwest Bancshares pays 72.1% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Peoples Financial Services has increased its dividend for 6 consecutive years and Northwest Bancshares has increased its dividend for 13 consecutive years. Northwest Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of the current ratings and target prices for Peoples Financial Services and Northwest Bancshares, as reported by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Financial Services to Peoples||0||0||1||0||3.00|
|North West Bank||1||3||0||0||1.75|
Peoples Financial Services currently has a consensus price target of $57.00, suggesting a potential upside of 7.30%. Northwest Bancshares has a consensus price target of $13.01, suggesting a potential upside of 6.52%. Given Peoples Financial Services’ higher consensus rating and higher possible upside, stock analysts clearly believe Peoples Financial Services is more favorable than Northwest Bancshares.
This table compares the net margins, return on equity and return on assets of Peoples Financial Services and Northwest Bancshares.
|Net margins||Return on equity||return on assets|
|Financial Services to Peoples||36.18%||10.38%||1.05%|
|North West Bank||26.19%||9.12%||0.99%|
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of Peoples Financial Services and Northwest Bancshares.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Financial Services to Peoples||$119.69 million||3.18||$43.52 million||$6.05||8.78|
|North West Bank||$561.40 million||2.76||$154.32 million||$1.11||11:00|
Northwest Bancshares has higher revenue and profits than Peoples Financial Services. Peoples Financial Services trades at a lower price-to-earnings ratio than Northwest Bancshares, indicating that it is currently the more affordable of the two stocks.
Institutional and insider ownership
29.3% of Peoples Financial Services shares are held by institutional investors. By comparison, 61.2% of Northwest Bancshares shares are held by institutional investors. 3.3% of Peoples Financial Services stock is held by insiders. By comparison, 1.0% of Northwest Bancshares shares are held by insiders. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a company is poised for long-term growth.
Volatility and risk
Peoples Financial Services has a beta of 0.21, suggesting its stock price is 79% less volatile than the S&P 500. By comparison, Northwest Bancshares has a beta of 0.56, suggesting its stock price is 44 % less volatile than the S&P 500.
Peoples Financial Services beat Northwest Bancshares on 10 out of 17 factors compared between the two stocks.
About Peoples Financial Services (Get a rating)
Peoples Financial Services Corp. operates as a bank holding company for Peoples Security Bank and Trust Company which provides various commercial and retail banking services. The company accepts Money Market, NOW, Savings, Individual Retirement, Demand Deposits and Certificates of Deposit Accounts. It also offers residential real estate, auto, prefab, 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 business needs, and mineral rights. In addition, the company offers investment management, IRA trustee, estate administration, life and life insurance trust, estate trustee, guardianship, IRA custodial/custody and trust services. corporate trust, as well as pension and profit-sharing plans. Additionally, it offers investment portfolio management, estate and business succession planning, annuity, insurance, pension plan and tax planning services, as well as corporate finance strategies. education ; and securities and brokerage, and investor services. In addition, the Company offers small business checking and merchant money market accounts, online and telephone banking, business credit cards, merchant line of credit and balance sheet services; and remote deposit capture, automatic clearing house transaction, cash management, ATM, point of sale transaction, safe deposit box, night deposit, direct deposit and official check services. It serves businesses, nonprofits, government agencies, municipal agencies, and professionals, as well as retail clients through 28 full-service community banking offices located in Allegheny, Bucks, Lackawanna, Lebanon, Lehigh, Lucerne , Monroe, Montgomery, Northampton, Susquehanna and Wyoming counties in Pennsylvania; Middlesex County of New Jersey; and New York’s Broome County. The company was founded in 1905 and is based in Scranton, Pennsylvania.
About Northwest Bancshares (Get a rating)
Northwest Bancshares, Inc. operates as the holding company of Northwest Bank, a state-chartered savings bank that provides personal and business banking solutions. The company accepts a variety of deposits, including checks, savings, money market deposits, term certificates, and individual retirement accounts. It also offers lending products including one to four-family residential real estate loans and loans secured by multi-family residential and commercial real estate; commercial business loans; and consumer loans, including auto loans, sales financing loans, unsecured personal loans, credit card loans and loans secured by deposit accounts. The company also provides 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.
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