Citigroup (NYSE: C) and Peoples Bancorp (NASDAQ:PEBO) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Dividends

Citigroup pays an annual dividend of $1.28 per share and has a dividend yield of 1.7%. Peoples Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.6%. Citigroup pays out 25.5% of its earnings in the form of a dividend. Peoples Bancorp pays out 47.6% 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. Citigroup has raised its dividend for 2 consecutive years.

Valuation & Earnings

This table compares Citigroup and Peoples Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Citigroup $64.31 billion 3.14 $13.65 billion $5.01 14.78
Peoples Bancorp $157.17 million 3.82 $33.33 million $1.85 18.01

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

Institutional and Insider Ownership

75.4% of Citigroup shares are held by institutional investors. Comparatively, 62.6% of Peoples Bancorp shares are held by institutional investors. 0.1% of Citigroup shares are held by company insiders. Comparatively, 3.0% of Peoples Bancorp shares are held 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.

Risk and Volatility

Citigroup has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Peoples Bancorp has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Citigroup and Peoples Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Citigroup 2 8 15 0 2.52
Peoples Bancorp 0 3 0 0 2.00

Citigroup currently has a consensus target price of $71.55, indicating a potential downside of 3.39%. Peoples Bancorp has a consensus target price of $33.50, indicating a potential upside of 0.57%. Given Peoples Bancorp’s higher probable upside, analysts clearly believe Peoples Bancorp is more favorable than Citigroup.

Profitability

This table compares Citigroup and Peoples Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Citigroup 18.11% 7.32% 0.84%
Peoples Bancorp 19.67% 7.63% 0.98%

Summary

Citigroup beats Peoples Bancorp on 9 of the 17 factors compared between the two stocks.

Citigroup Company Profile

Citigroup Inc. (Citi) is a financial services holding company. The Company’s whose businesses provide consumers, corporations, governments and institutions with a range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, trade and securities services and wealth management. The Company operates through two segments: Citicorp and Citi Holdings. Citicorp is the Company’s global bank for consumers and businesses and represents its core franchises. Citicorp is focused on providing products and services to customers and leveraging the Company’s global network, including various economies. As of December 31, 2016, Citicorp was present in 97 countries and jurisdictions, and offered services in over 160 countries and jurisdictions. Global Consumer Banking (GCB) provides traditional banking services to retail customers through retail banking, including Citi-branded cards and Citi retail services.

Peoples Bancorp Company Profile

Peoples Bancorp Inc. is a financial holding company. The Company operates principally through its subsidiary, Peoples Bank. Peoples Bank’s operating subsidiaries include Peoples Insurance Agency, LLC (Peoples Insurance) and two asset management companies, PBNA, L.L.C. and Peoples Tax Credit Equity, LLC. Peoples Investment Company has one subsidiary, Peoples Capital Corporation. The Company offers banking, insurance, investment and trust solutions. Its products and services include various demand deposit accounts, savings accounts, money market accounts and certificates of deposit; commercial, consumer and real estate mortgage loans (both commercial and residential) and lines of credit; debit and automated teller machine (ATM) cards; credit cards for individuals and businesses; merchant credit card transaction processing services; corporate and personal trust services; a range of life, health and property and casualty insurance products, and brokerage services.

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