Bank First National (NASDAQ:BFC) & Peapack-Gladstone Financial (NASDAQ:PGC) Critical Comparison

Peapack-Gladstone Financial (NASDAQ:PGC) and Bank First National (NASDAQ:BFC) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Insider & Institutional Ownership

72.8% of Peapack-Gladstone Financial shares are owned by institutional investors. Comparatively, 30.0% of Bank First National shares are owned by institutional investors. 7.0% of Peapack-Gladstone Financial shares are owned by insiders. Comparatively, 4.1% of Bank First National shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Peapack-Gladstone Financial has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Bank First National has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500.

Profitability

This table compares Peapack-Gladstone Financial and Bank First National’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peapack-Gladstone Financial	7.62%	5.25%	0.46%
Bank First National	29.04%	10.92%	1.56%

Earnings and Valuation

This table compares Peapack-Gladstone Financial and Bank First National”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peapack-Gladstone Financial	$406.92 million	1.26	$32.99 million	$1.83	15.86
Bank First National	$226.09 million	5.41	$65.56 million	$6.93	17.95

Bank First National has lower revenue, but higher earnings than Peapack-Gladstone Financial. Peapack-Gladstone Financial is trading at a lower price-to-earnings ratio than Bank First National, indicating that it is currently the more affordable of the two stocks.

Dividends

Peapack-Gladstone Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. Bank First National pays an annual dividend of $1.80 per share and has a dividend yield of 1.4%. Peapack-Gladstone Financial pays out 10.9% of its earnings in the form of a dividend. Bank First National pays out 26.0% 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. Bank First National has increased its dividend for 10 consecutive years. Bank First National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Peapack-Gladstone Financial and Bank First National, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peapack-Gladstone Financial	0	0	2	1	3.33
Bank First National	0	1	1	0	2.50

Peapack-Gladstone Financial currently has a consensus price target of $36.33, indicating a potential upside of 25.20%. Bank First National has a consensus price target of $133.50, indicating a potential upside of 7.32%. Given Peapack-Gladstone Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Peapack-Gladstone Financial is more favorable than Bank First National.

About Peapack-Gladstone Financial

Peapack-Gladstone Financial Corporation operates as the bank holding company for Peapack-Gladstone Bank that provides private banking and wealth management services in the United States. The company operates in two segments, Banking and Peapack Private. It offers checking and savings accounts, money market and interest-bearing checking accounts, certificates of deposit, and individual retirement accounts. The company also provides working capital lines of credit, term loans for fixed asset acquisitions, commercial mortgages, multi-family mortgages, and other forms of asset-based financing services; and residential mortgages, home equity lines of credit, and other second mortgage loans. In addition, it offers corporate and industrial (C&I) and equipment finance, commercial real estate, multifamily, residential, and consumer lending activities; treasury management services; C&I advisory services; escrow management; deposit generation; investment management services; personal trust services, including services as executor, trustee, administrator, custodian, and guardian; and other financial planning, tax preparation, and advisory services. Further, the company provides telephone and Internet banking, merchant credit card, and customer support sales services. Its private banking clients include businesses, non-profits, and consumers; wealth management clients comprise individuals, families, foundations, endowments, trusts, and estates; and commercial loan clients include business owners, professionals, retailers, contractors, and real estate investors. The company operates its private banking locations in Bedminster, Morristown, Princeton, and Teaneck, New Jersey; and branches in Somerset, Morris, Hunterdon, and Union counties, as well as operates automated teller machines. Peapack-Gladstone Financial Corporation was founded in 1921 and is headquartered in Bedminster, New Jersey.

About Bank First National

Bank First Corporation operates as a holding company for Bank First, N.A. that provides consumer and commercial financial services to businesses, professionals, consumers, associations, individuals, and governmental authorities in Wisconsin. It offers checking, savings, money market, cash management, retirement, and health savings accounts; other time deposits; certificates of deposit; and residential mortgage products. The company's loan products include real estate loans, including commercial real estate, residential mortgage, and home equity loans; commercial and industrial loans for working capital, accounts receivable, inventory financing, and other business purposes; construction and development loans; residential 1-4 family loans; and consumer loans for personal and household purposes, including secured and unsecured installment loans, and revolving lines of credit. It also provides credit cards; ATM processing; insurance; data processing and other information technology; investment and safekeeping; treasury management; and online, telephone, and mobile banking services. The company was formerly known as Bank First National Corporation and changed its name to Bank First Corporation in June 2019. Bank First Corporation was founded in 1894 and is headquartered in Manitowoc, Wisconsin.