Comparing Univest Corporation of Pennsylvania (NASDAQ:UVSP) & Parke Bancorp (NASDAQ:PKBK)

Parke Bancorp (NASDAQ:PKBK) and Univest Corporation of Pennsylvania (NASDAQ:UVSP) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current ratings and price targets for Parke Bancorp and Univest Corporation of Pennsylvania, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Parke Bancorp	0	0	1	0	3.00
Univest Corporation of Pennsylvania	0	3	1	0	2.25

Univest Corporation of Pennsylvania has a consensus target price of $40.50, suggesting a potential downside of 8.39%. Given Univest Corporation of Pennsylvania’s higher probable upside, analysts clearly believe Univest Corporation of Pennsylvania is more favorable than Parke Bancorp.

Earnings & Valuation

This table compares Parke Bancorp and Univest Corporation of Pennsylvania”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Parke Bancorp	$146.08 million	2.69	$37.78 million	$3.84	8.71
Univest Corporation of Pennsylvania	$518.35 million	2.38	$90.76 million	$3.46	12.78

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

Insider and Institutional Ownership

49.7% of Parke Bancorp shares are owned by institutional investors. Comparatively, 75.1% of Univest Corporation of Pennsylvania shares are owned by institutional investors. 13.0% of Parke Bancorp shares are owned by company insiders. Comparatively, 1.8% of Univest Corporation of Pennsylvania shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Parke Bancorp and Univest Corporation of Pennsylvania’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Parke Bancorp	29.99%	14.11%	2.07%
Univest Corporation of Pennsylvania	18.86%	10.44%	1.17%

Risk and Volatility

Parke Bancorp has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Univest Corporation of Pennsylvania has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.

Dividends

Parke Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. Univest Corporation of Pennsylvania pays an annual dividend of $0.92 per share and has a dividend yield of 2.1%. Parke Bancorp pays out 20.8% of its earnings in the form of a dividend. Univest Corporation of Pennsylvania pays out 26.6% 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. Univest Corporation of Pennsylvania has increased its dividend for 1 consecutive years. Parke Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Parke Bancorp beats Univest Corporation of Pennsylvania on 9 of the 16 factors compared between the two stocks.

About Parke Bancorp

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.

About Univest Corporation of Pennsylvania

Univest Financial Corporation operates as the bank holding company for Univest Bank and Trust Co. that provides banking products and services primarily in the United States. It operates through three segments: Banking, Wealth Management, and Insurance. The Banking segment offers a range of banking services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking, and equipment lease financing services for individuals, businesses, municipalities, and nonprofit organizations. Its Wealth Management segment provides investment advisory, financial planning, and trust and brokerage services for private families and individuals, municipal pension plans, retirement plans, and trusts and guardianships. The Insurance segment offers commercial property and casualty insurance, employee benefits solutions, personal insurance lines, and human resources consulting services. The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. The company was founded in 1876 and is headquartered in Souderton, Pennsylvania.