Ponce Financial Group (NASDAQ:PDLB) and Eastern Bankshares (NASDAQ:EBC) Financial Comparison

Ponce Financial Group (NASDAQ:PDLBGet Rating) and Eastern Bankshares (NASDAQ:EBCGet Rating) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares Ponce Financial Group and Eastern Bankshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ponce Financial Group 15.54% 7.74% 1.02%
Eastern Bankshares 24.39% 5.26% 0.86%

Earnings & Valuation

This table compares Ponce Financial Group and Eastern Bankshares’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ponce Financial Group $101.74 million 2.25 $25.42 million N/A N/A
Eastern Bankshares $628.31 million 5.57 $154.66 million $0.92 20.68

Eastern Bankshares has higher revenue and earnings than Ponce Financial Group.

Insider & Institutional Ownership

29.2% of Ponce Financial Group shares are held by institutional investors. Comparatively, 59.0% of Eastern Bankshares shares are held by institutional investors. 1.9% of Ponce Financial Group shares are held by insiders. Comparatively, 1.4% of Eastern Bankshares shares are held by 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 & Volatility

Ponce Financial Group has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Eastern Bankshares has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Ponce Financial Group and Eastern Bankshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ponce Financial Group 0 0 1 0 3.00
Eastern Bankshares 0 0 1 0 3.00

Ponce Financial Group presently has a consensus target price of $12.25, indicating a potential upside of 32.15%. Eastern Bankshares has a consensus target price of $23.00, indicating a potential upside of 20.86%. Given Ponce Financial Group’s higher probable upside, analysts clearly believe Ponce Financial Group is more favorable than Eastern Bankshares.

Summary

Eastern Bankshares beats Ponce Financial Group on 7 of the 11 factors compared between the two stocks.

About Ponce Financial Group (Get Rating)

Ponce Financial Group, Inc., a bank holding company for Ponce Bank that provides various banking products and services. It accepts various deposit products, including demand accounts, NOW/IOLA accounts, money market accounts, reciprocal deposits, savings accounts, and certificates of deposit. The company also provides one-to-four family investor-owned, one-to-four family owner-occupied, multifamily and nonresidential, construction and land, commercial and industrial, and consumer loans; lines of credit; and paycheck protection program. In addition, it invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or government-owned enterprises, as well as mortgage-backed securities, corporate bonds and obligations, and Federal Home Loan Bank stock. It operates 4 banking offices in Bronx, 2 banking offices in Manhattan, 3 banking offices in Queens, and 3 banking offices in Brooklyn, New York; 1 banking office in Union City, New Jersey; and 1 mortgage office in Nassau County, 2 mortgage offices in Queens, 1 mortgage office in Brooklyn, New York; and 1 mortgage office in Englewood Cliffs and 1 mortgage office in Bergenfield, New Jersey. Ponce Financial Group, Inc. was founded in 1960 and is based in Bronx, New York.

About Eastern Bankshares (Get Rating)

Eastern Bankshares, Inc. operates as the bank holding company for Eastern Bank that provides banking products and services primarily to retail, commercial, and small business customers. It operates in two segments, Banking Business and Insurance Agency Business. The company provides interest-bearing and non interest-bearing checking deposits, money market deposits, savings deposits, and time certificates of deposits, as well as debit and credit cards. It also offers commercial and industrial loans, commercial real estate and construction loans, small business loans, residential real estate loans, home equity, and lines of credit, as well as other consumer loans comprising unsecured personal lines of credit, overdraft protection, automobile loans, home improvement loans, airplane loans, and other personal loans. In addition, the company provides cash reserves, cash management, merchant, escrow express, government banking, international banking, interest on lawyers trust accounts, retirement planning, and business telephone banking services, as well as products and services for not-for-profit and healthcare. Further, it offers trust and investment products and services; community development and asset-based lending services; financial planning, portfolio management, wealth management, private banking, and fiduciary products; online, mobile, and telephone banking services; and automated lock box collection and account reconciliation services, as well as various insurance products. As of December 31, 2021, the company operated 105 branch offices in eastern Massachusetts and southern New Hampshire; and 23 non-branch offices in eastern Massachusetts, one office in New Hampshire, and one office in Rhode Island. Eastern Bankshares, Inc. was founded in 1818 and is headquartered in Boston, Massachusetts.

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