Anchor Bancorp (NASDAQ: ANCB) and Peapack-Gladstone Financial Corporation (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

42.6% of Anchor Bancorp shares are held by institutional investors. Comparatively, 67.9% of Peapack-Gladstone Financial Corporation shares are held by institutional investors. 6.5% of Anchor Bancorp shares are held by insiders. Comparatively, 5.9% of Peapack-Gladstone Financial Corporation 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.

Profitability

This table compares Anchor Bancorp and Peapack-Gladstone Financial Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anchor Bancorp 9.58% 3.63% 0.52%
Peapack-Gladstone Financial Corporation 19.54% 9.12% 0.77%

Risk & Volatility

Anchor Bancorp has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Peapack-Gladstone Financial Corporation has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Dividends

Peapack-Gladstone Financial Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Anchor Bancorp does not pay a dividend. Peapack-Gladstone Financial Corporation pays out 11.3% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Anchor Bancorp and Peapack-Gladstone Financial Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anchor Bancorp 0 0 0 0 N/A
Peapack-Gladstone Financial Corporation 0 1 2 0 2.67

Peapack-Gladstone Financial Corporation has a consensus price target of $32.00, suggesting a potential downside of 5.58%. Given Peapack-Gladstone Financial Corporation’s higher possible upside, analysts clearly believe Peapack-Gladstone Financial Corporation is more favorable than Anchor Bancorp.

Earnings & Valuation

This table compares Anchor Bancorp and Peapack-Gladstone Financial Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Anchor Bancorp $20.91 million 2.89 $2.38 million $0.97 25.46
Peapack-Gladstone Financial Corporation $124.41 million 4.74 $30.80 million $1.77 19.15

Peapack-Gladstone Financial Corporation has higher revenue and earnings than Anchor Bancorp. Peapack-Gladstone Financial Corporation is trading at a lower price-to-earnings ratio than Anchor Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Peapack-Gladstone Financial Corporation beats Anchor Bancorp on 12 of the 15 factors compared between the two stocks.

About Anchor Bancorp

Anchor Bancorp is the bank holding company of Anchor Bank (the Bank). The Bank is a community-based savings bank. As of June 30, 2016, the Bank primarily served Western Washington through its 10 full-service banking offices (including a Wal-Mart in-store location) located within Grays Harbor, Thurston, Lewis, Pierce and Mason counties, and a loan production office located in King County, Washington. It is in the business of attracting deposits from the public and utilizing those deposits to originate loans. The Bank offers a range of loan products. The Bank’s operations include commercial banking services, such as lending activities, deposit products and other cash management services. The Bank offers commercial real estate loans and multi-family loans primarily in Western Washington. The Bank offers various deposit instruments, including checking accounts, money market deposit accounts, savings accounts and certificates of deposit with a range of rates.

About Peapack-Gladstone Financial Corporation

Peapack-Gladstone Financial Corporation is a bank holding company. The Company’s principal subsidiary is Peapack-Gladstone Bank (the Bank), which is a state chartered commercial bank. The Company operates through two segments: Banking and Private Wealth Management Division. The Banking segment includes commercial, commercial real estate, multifamily, residential and consumer lending activities; deposit generation; operation of automated teller machines (ATMs); telephone and Internet banking services; merchant credit card services, and customer support sales. The Private Wealth Management Division includes asset management services provided for individuals and institutions; personal trust services, including services as executor, trustee, administrator, custodian and guardian; corporate trust services, including services as trustee for pension and profit sharing plans, and other financial planning and advisory services.

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