Popular (NASDAQ:BPOP – Get Free Report) and Dime Community Bancshares (NASDAQ:DCOM – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.
Institutional and Insider Ownership
87.3% of Popular shares are held by institutional investors. Comparatively, 75.3% of Dime Community Bancshares shares are held by institutional investors. 2.2% of Popular shares are held by insiders. Comparatively, 7.1% of Dime Community Bancshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Popular and Dime Community Bancshares”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 | 2.00 | $614.21 million | $10.32 | 12.41 |
| Dime Community Bancshares | $646.19 million | 2.07 | $29.08 million | $0.84 | 36.20 |
Popular has higher revenue and earnings than Dime Community Bancshares. Popular is trading at a lower price-to-earnings ratio than Dime Community Bancshares, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Popular has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Dime Community Bancshares has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Popular and Dime Community Bancshares, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Popular | 0 | 1 | 7 | 1 | 3.00 |
| Dime Community Bancshares | 0 | 0 | 3 | 1 | 3.25 |
Popular presently has a consensus price target of $130.13, suggesting a potential upside of 1.63%. Dime Community Bancshares has a consensus price target of $36.88, suggesting a potential upside of 21.26%. Given Dime Community Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe Dime Community Bancshares is more favorable than Popular.
Profitability
This table compares Popular and Dime Community Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Popular | 16.49% | 12.48% | 0.98% |
| Dime Community Bancshares | 6.74% | 6.90% | 0.62% |
Dividends
Popular pays an annual dividend of $3.00 per share and has a dividend yield of 2.3%. Dime Community Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 3.3%. Popular pays out 29.1% of its earnings in the form of a dividend. Dime Community Bancshares pays out 119.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Popular has raised its dividend for 6 consecutive years and Dime Community Bancshares has raised its dividend for 2 consecutive years.
Summary
Popular beats Dime Community Bancshares 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 Dime Community Bancshares
Dime Community Bancshares, Inc. operates as the holding company for Dime Community Bank that engages in the provision of various commercial banking and financial services. The company accepts time, savings, and demand deposits from the businesses, consumers, and local municipalities. It also offers commercial real estate loans; multi-family mortgage loans; residential mortgage loans; letters of credit; secured and unsecured commercial and consumer loans; lines of credit; home equity loans; and construction and land loans. In addition, the company invests in Federal Home Loan Bank, Federal National Mortgage Association, Government National Mortgage Association, and Federal Home Loan Mortgage Corporation mortgage-backed securities, collateralized mortgage obligations, and other asset backed securities; U.S. Treasury securities; New York state and local municipal obligations; U.S. government-sponsored enterprise securities; and corporate bonds. Further, it offers certificate of deposit account registry services and insured cash sweep programs; federal deposit insurance corporation insurance; merchant credit and debit card processing, automated teller machines, cash management services, lockbox processing, online banking services, remote deposit capture, safe deposit boxes, and individual retirement accounts; investment products and services through a third-party broker dealer; and title insurance broker services for small and medium sized businesses, and municipal and consumer relationships. The company was founded in 1910 and is headquartered in Hauppauge, New York.
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