Provident Financial (NASDAQ: PROV) and Sussex Bancorp (NASDAQ:SBBX) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
This table compares Provident Financial and Sussex Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares Provident Financial and Sussex Bancorp’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Provident Financial||$73.24 million||1.88||$5.20 million||$0.13||141.40|
|Sussex Bancorp||$43.98 million||5.61||$5.69 million||$1.10||28.27|
Sussex Bancorp has lower revenue, but higher earnings than Provident Financial. Sussex Bancorp is trading at a lower price-to-earnings ratio than Provident Financial, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Provident Financial has a beta of 0.03, meaning that its stock price is 97% less volatile than the S&P 500. Comparatively, Sussex Bancorp has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.
Provident Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.0%. Sussex Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 0.8%. Provident Financial pays out 430.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sussex Bancorp pays out 21.8% of its earnings in the form of a dividend.
Insider and Institutional Ownership
60.5% of Provident Financial shares are held by institutional investors. Comparatively, 37.3% of Sussex Bancorp shares are held by institutional investors. 12.7% of Provident Financial shares are held by insiders. Comparatively, 17.6% of Sussex Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of current ratings and price targets for Provident Financial and Sussex Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Provident Financial currently has a consensus target price of $19.50, suggesting a potential upside of 6.09%. Sussex Bancorp has a consensus target price of $32.75, suggesting a potential upside of 5.31%. Given Provident Financial’s higher possible upside, equities analysts plainly believe Provident Financial is more favorable than Sussex Bancorp.
Sussex Bancorp beats Provident Financial on 9 of the 14 factors compared between the two stocks.
Provident Financial Company Profile
Provident Financial Holdings, Inc. is the holding company of Provident Savings Bank, F.S.B. (the Bank). The Bank is a federally chartered stock savings bank. The Company operates through two segments: Provident Bank and Provident Bank Mortgage (PBM). The Bank’s operations primarily consist of accepting deposits from customers within the communities surrounding the Bank’s full service offices and investing those funds in single-family loans, multi-family loans, commercial real estate loans, construction loans, commercial business loans, consumer loans and other mortgage loans. PBM operations primarily consist of the origination, purchase and sale of mortgage loans secured by single-family residences. The Bank is a financial services company committed to serving consumers and small to mid-sized businesses in the Inland Empire region of Southern California. The Bank offers business checking accounts, other business banking services and services loans for others.
Sussex Bancorp Company Profile
Sussex Bancorp is a bank holding company for Sussex Bank (the Bank). The Company’s primary business is the ownership and supervision of the Bank. The Company has two business segments: banking and financial services, and insurance services. The Company, through the Bank, conducts a traditional commercial banking business, and offer services, including personal and business checking accounts and time deposits, money market accounts and savings accounts. The Company, through the Bank’s subsidiary, Tri-State, operates a full service general insurance agency, offering both commercial and personal lines of insurance. The Company’s service area primarily consists of Sussex, Morris and Bergen Counties in New Jersey, and Orange and Queens Counties, New York. The Company’s loan portfolio includes commercial and industrial consumer loans, construction loans, commercial real estate loans, residential real estate loans, and consumer and other loans.
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