Popular (NASDAQ:BPOP – Get Free Report) and Fvcbankcorp (NASDAQ:FVCB – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.
Analyst Ratings
This is a breakdown of current ratings and price targets for Popular and Fvcbankcorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Popular | 0 | 1 | 7 | 0 | 2.88 |
| Fvcbankcorp | 0 | 0 | 1 | 0 | 3.00 |
Popular presently has a consensus price target of $128.8750, suggesting a potential upside of 12.74%. Fvcbankcorp has a consensus price target of $16.00, suggesting a potential upside of 28.51%. Given Fvcbankcorp’s stronger consensus rating and higher possible upside, analysts clearly believe Fvcbankcorp is more favorable than Popular.
Risk & Volatility
Institutional and Insider Ownership
87.3% of Popular shares are held by institutional investors. Comparatively, 43.6% of Fvcbankcorp shares are held by institutional investors. 2.1% of Popular shares are held by insiders. Comparatively, 10.9% of Fvcbankcorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments 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 2.4%. Fvcbankcorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.9%. Popular pays out 27.1% of its earnings in the form of a dividend. Fvcbankcorp pays out 21.8% 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. Popular has raised its dividend for 6 consecutive years. Popular is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Popular and Fvcbankcorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Popular | 16.49% | 12.60% | 0.99% |
| Fvcbankcorp | 17.08% | 8.70% | 0.90% |
Valuation and Earnings
This table compares Popular and Fvcbankcorp”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Popular | $4.33 billion | 1.81 | $614.21 million | $10.32 | 11.08 |
| Fvcbankcorp | $115.85 million | 1.93 | $15.06 million | $1.10 | 11.32 |
Popular has higher revenue and earnings than Fvcbankcorp. Popular is trading at a lower price-to-earnings ratio than Fvcbankcorp, indicating that it is currently the more affordable of the two stocks.
Summary
Popular beats Fvcbankcorp on 10 of the 17 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 Fvcbankcorp
FVCBankcorp, Inc. operates as the bank holding company for FVCbank that provides various banking products and services in Virginia. It offers deposit products, including interest and noninterest-bearing transaction accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction loans; commercial loans for various business purposes, such as for working capital, equipment purchases, lines of credit, and government contract financing; small business administration loans; asset-based loans and accounts receivable financing; home equity loans; and consumer loans. In addition, it offers business and consumer credit cards; merchant services; business insurance products; and online banking, remote deposit, and mobile banking services. The company serves commercial businesses, nonprofit organizations, professional service entities, and their respective owners and employees located in the greater Washington, D.C., and Baltimore metropolitan areas. It operates branch offices in Arlington, Virginia; the independent city of Manassas, Virginia; Reston, Fairfax County, Virginia; Springfield, Fairfax County in Virginia; and Montgomery County and Baltimore in Maryland, and Washington, D.C. FVCBankcorp, Inc. was founded in 2007 and is headquartered in Fairfax, Virginia.
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