Provident Financial Services (NYSE: PFS) is one of 207 public companies in the “Commercial Banks” industry, but how does it contrast to its competitors? We will compare Provident Financial Services to related companies based on the strength of its analyst recommendations, profitability, valuation, risk, dividends, institutional ownership and earnings.

Dividends

Provident Financial Services pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. Provident Financial Services pays out 54.8% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.7% of their earnings in the form of a dividend. Provident Financial Services has raised its dividend for 6 consecutive years.

Profitability

This table compares Provident Financial Services and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Provident Financial Services 25.39% 7.40% 0.98%
Provident Financial Services Competitors 19.75% 8.39% 0.88%

Valuation & Earnings

This table compares Provident Financial Services and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Provident Financial Services $318.11 million N/A 18.99
Provident Financial Services Competitors N/A N/A 25.80

Provident Financial Services is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Provident Financial Services has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Provident Financial Services’ competitors have a beta of 0.74, indicating that their average share price is 26% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Provident Financial Services and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Provident Financial Services 0 3 2 0 2.40
Provident Financial Services Competitors 380 2898 2373 70 2.37

Provident Financial Services currently has a consensus price target of $26.88, indicating a potential downside of 3.08%. As a group, “Commercial Banks” companies have a potential downside of 0.36%. Given Provident Financial Services’ competitors higher possible upside, analysts plainly believe Provident Financial Services has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

61.2% of Provident Financial Services shares are owned by institutional investors. Comparatively, 46.5% of shares of all “Commercial Banks” companies are owned by institutional investors. 2.9% of Provident Financial Services shares are owned by company insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

About Provident Financial Services

Provident Financial Services Inc. is a holding company for The Provident Bank (the Bank). The Bank is a New Jersey-chartered capital stock savings bank. As a community and customer-oriented institution, the Bank provides personal service and customer convenience in serving the financial needs of the individuals, families and businesses residing in its primary markets areas. The Bank attracts deposits from the general public and businesses in the areas surrounding its banking offices and uses those funds, together with funds generated from operations and borrowings, to originate commercial real estate loans, residential mortgage loans, commercial business loans and consumer loans. The Bank also invests in mortgage-backed securities and other permissible investments. It operates service branch offices in the New Jersey counties of Hudson, Bergen, Essex, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, as well as in Bucks, Lehigh and Northampton counties in Pennsylvania.

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