Hudson City Bancorp (NASDAQ: HCBK) and Lakeland Bancorp (NASDAQ:LBAI) are both financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitabiliy.

Institutional and Insider Ownership

52.4% of Lakeland Bancorp shares are owned by institutional investors. 6.2% of Lakeland Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Hudson City Bancorp and Lakeland Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hudson City Bancorp N/A N/A N/A N/A N/A
Lakeland Bancorp $177.18 million 5.09 $49.72 million $1.05 18.14

Lakeland Bancorp has higher revenue and earnings than Hudson City Bancorp.

Profitability

This table compares Hudson City Bancorp and Lakeland Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hudson City Bancorp 28.49% 2.98% 0.40%
Lakeland Bancorp 23.94% 9.35% 0.98%

Analyst Ratings

This is a breakdown of current ratings and target prices for Hudson City Bancorp and Lakeland Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hudson City Bancorp 0 0 0 0 N/A
Lakeland Bancorp 0 3 0 0 2.00

Dividends

Lakeland Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. Hudson City Bancorp does not pay a dividend. Lakeland Bancorp pays out 38.1% of its earnings in the form of a dividend.

Summary

Lakeland Bancorp beats Hudson City Bancorp on 6 of the 8 factors compared between the two stocks.

About Hudson City Bancorp

Hudson City Bancorp, Inc. serves as the holding company of its subsidiary, Hudson City Savings Bank (the Bank). The Bank is a federal stock savings bank. The Company is a community and consumer-oriented retail savings bank offering traditional deposit products, residential real estate mortgage loans and consumer loans. In addition, it purchases residential mortgages, commercial real estate mortgages and interests in such loans and mortgage-backed securities and other securities issued by the United States government-sponsored enterprises (GSEs), as well as other investments permitted by applicable laws and regulations. The Company has two wholly owned and consolidated subsidiaries, including HudCiti Service Corporation and HC Value Broker Services, Inc.

About Lakeland Bancorp

Lakeland Bancorp, Inc. is the bank holding company for Lakeland Bank (Lakeland). Lakeland operates under a state bank charter and provides full banking services. Lakeland generates commercial, mortgage and consumer loans and receives deposits from customers located in Northern and Central New Jersey. Lakeland also provides non-deposit products, such as securities brokerage services, including mutual funds and variable annuities. Through Lakeland, the Company offers a range of lending, depository and related financial services to individuals and small to medium sized businesses located in northern and central New Jersey. Lakeland’s equipment financing division provides a solution to small and medium sized companies preferring to lease equipment over other financial alternatives. Lakeland’s asset based loan department provides commercial borrowers with another lending alternative. It also offers wire transfer, Internet banking, mobile banking and night depository services.

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