Analyzing Provident Financial Services (NYSE:PFS) and Security Bancorp (OTCMKTS:SCYT)

Provident Financial Services (NYSE:PFSGet Free Report) and Security Bancorp (OTCMKTS:SCYTGet Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Valuation and Earnings

This table compares Provident Financial Services and Security Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Provident Financial Services $695.65 million 1.59 $128.40 million $1.71 8.58
Security Bancorp N/A N/A N/A N/A N/A

Provident Financial Services has higher revenue and earnings than Security Bancorp.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Provident Financial Services and Security Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Provident Financial Services 0 2 2 0 2.50
Security Bancorp 0 0 0 0 N/A

Provident Financial Services presently has a consensus price target of $17.75, indicating a potential upside of 21.00%. Given Provident Financial Services’ higher probable upside, research analysts clearly believe Provident Financial Services is more favorable than Security Bancorp.

Volatility & Risk

Provident Financial Services has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Security Bancorp has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500.

Profitability

This table compares Provident Financial Services and Security Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Provident Financial Services 18.46% 7.88% 0.93%
Security Bancorp N/A N/A N/A

Institutional & Insider Ownership

72.0% of Provident Financial Services shares are owned by institutional investors. 4.4% of Provident Financial Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Provident Financial Services pays an annual dividend of $0.96 per share and has a dividend yield of 6.5%. Security Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 1.6%. Provident Financial Services pays out 56.1% of its earnings in the form of a dividend.

Summary

Provident Financial Services beats Security Bancorp on 10 of the 11 factors compared between the two stocks.

About Provident Financial Services

(Get Free Report)

Provident Financial Services, Inc. operates as the bank holding company for Provident Bank that provides various banking products and services to individuals, families, and businesses in the United States. Its deposit products include savings, checking, interest-bearing checking, money market deposit, and certificate of deposit accounts, as well as IRA products. The company's loan portfolio comprises commercial real estate loans that are secured by properties, such as multi-family apartment buildings, office buildings, retail and industrial properties, and office buildings; commercial business loans; fixed-rate and adjustable-rate mortgage loans collateralized by one- to four-family residential real estate properties; commercial construction loans; and consumer loans consisting of home equity loans, home equity lines of credit, personal loans and unsecured lines of credit, and auto and recreational vehicle loans. It also offers cash management, remote deposit capture, payroll origination, escrow account management, and online and mobile banking services; and business credit cards. In addition, the company provides wealth management services comprising investment management, trust and estate administration, financial planning, and tax compliance and planning. Further, it sells insurance and investment products, including annuities; operates as a real estate investment trust for acquiring mortgage loans and other real estate related assets; and manages and sells real estate properties acquired through foreclosure. The company was founded in 1839 and is headquartered in Jersey City, New Jersey.

About Security Bancorp

(Get Free Report)

Security Bancorp, Inc. operates as the bank holding company for Security Federal Savings Bank that provides banking products and services to individual and corporate customers in Tennessee. The company's deposit products include checking and savings accounts, and certificates of deposit. It also offers consumer loans; mortgage loans; commercial loans, including installment loans and lines of credit; residential real estate loans; and acquisition and development loans. In addition, the company provides financial services that include individual retirement accounts; mutual funds, stocks, and bonds; rollovers; transfers; fixed, variable, indexed, and immediate annuities; life insurance; college planning; and bill payment products and services, as well as online, mobile, and telephone banking services. Security Bancorp, Inc. was founded in 1960 and is headquartered in McMinnville, Tennessee.

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