Popular (NASDAQ:BPOP – Get Free Report) and Signature Bank (NASDAQ:SBNY – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
Insider and Institutional Ownership
87.3% of Popular shares are owned by institutional investors. Comparatively, 11.1% of Signature Bank shares are owned by institutional investors. 2.1% of Popular shares are owned by insiders. Comparatively, 1.5% of Signature Bank shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Dividends
Popular pays an annual dividend of $2.80 per share and has a dividend yield of 2.7%. Signature Bank pays an annual dividend of $0.70 per share and has a dividend yield of 132.1%. Popular pays out 28.9% of its earnings in the form of a dividend. Popular has increased its dividend for 6 consecutive years.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Popular | 0 | 1 | 6 | 0 | 2.86 |
| Signature Bank | 0 | 0 | 0 | 0 | 0.00 |
Popular presently has a consensus target price of $114.43, suggesting a potential upside of 8.68%. Given Popular’s stronger consensus rating and higher probable upside, research analysts clearly believe Popular is more favorable than Signature Bank.
Risk & Volatility
Popular has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Signature Bank has a beta of 11.34, suggesting that its share price is 1,034% more volatile than the S&P 500.
Valuation and Earnings
This table compares Popular and Signature Bank”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Popular | $2.84 billion | 2.54 | $612.80 million | $9.69 | 10.87 |
| Signature Bank | $2.70 billion | 0.01 | $1.34 billion | N/A | N/A |
Signature Bank has lower revenue, but higher earnings than Popular.
Profitability
This table compares Popular and Signature Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Popular | 14.15% | 11.89% | 0.90% |
| Signature Bank | N/A | N/A | N/A |
Summary
Popular beats Signature Bank on 11 of the 15 factors compared between the two stocks.
About Popular
Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking products and services in Puerto Rico, the United States, and the British Virgin Islands. The company provides savings, NOW, money market, and other interest-bearing demand accounts; non-interest bearing demand deposits; and certificates of deposit. It also offers commercial and industrial, commercial multi-family, commercial real estate, and residential mortgage loans; consumer loans, including personal loans, credit cards, automobile loans, home equity lines of credit, and other loans to individual borrowers; construction loans; and lease financing comprising automobile loans/leases. In addition, the company provides investment banking, auto and equipment leasing and financing, broker-dealer, and insurance services; debit cards; and online banking services. Popular, Inc. was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.
About Signature Bank
As of March 12, 2023, Signature Bank went out of business. Previously, the company provided digital assets banking services and comprised of certain loan portfolios. The company was incorporated in 2000 and is based in New York, New York. Signature Bank now trades on OTCPK.
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