Head-To-Head Review: Nicolet Bankshares (NYSE:NIC) versus Pioneer Bancorp (NASDAQ:PBFS)

Pioneer Bancorp (NASDAQ:PBFS) and Nicolet Bankshares (NYSE:NIC) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Pioneer Bancorp and Nicolet Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pioneer Bancorp	16.17%	6.38%	0.95%
Nicolet Bankshares	26.39%	12.08%	1.61%

Institutional and Insider Ownership

43.1% of Nicolet Bankshares shares are owned by institutional investors. 2.5% of Pioneer Bancorp shares are owned by insiders. Comparatively, 14.2% of Nicolet Bankshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Pioneer Bancorp has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Nicolet Bankshares has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Pioneer Bancorp and Nicolet Bankshares, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pioneer Bancorp	0	1	0	0	2.00
Nicolet Bankshares	0	1	3	0	2.75

Nicolet Bankshares has a consensus price target of $153.67, suggesting a potential upside of 28.55%. Given Nicolet Bankshares’ stronger consensus rating and higher possible upside, analysts clearly believe Nicolet Bankshares is more favorable than Pioneer Bancorp.

Earnings and Valuation

This table compares Pioneer Bancorp and Nicolet Bankshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pioneer Bancorp	$31.81 million	10.45	$6.45 million	$0.80	16.58
Nicolet Bankshares	$520.63 million	3.40	$124.06 million	$9.34	12.80

Nicolet Bankshares has higher revenue and earnings than Pioneer Bancorp. Nicolet Bankshares is trading at a lower price-to-earnings ratio than Pioneer Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Nicolet Bankshares beats Pioneer Bancorp on 12 of the 14 factors compared between the two stocks.

About Pioneer Bancorp

Pioneer Bancorp, Inc. operates as a holding company for Pioneer Savings Bank that provides various banking products and services in New York. The company accepts various deposit products, such as demand, savings, and money market accounts, as well as certificates of deposit accounts. Its loan products include commercial real estate, commercial and industrial, commercial construction, residential mortgage lending, consumer loans, and home equity lines of credit. The company also invests in the U.S. governmental securities, fixed rate collateralized mortgage obligations, mortgage-backed securities, fixed-rate investment grade bonds, and equity securities. In addition, the company offers personal and commercial insurance products, including homeowners, automobile, and comprehensive business insurance; employee benefit products and services, such as group health, dental, disability, and life insurance products, as well as defined contribution, defined benefit administration, and human resource management services; and wealth management services comprising investment advice, retirement income planning, estate planning, business succession, and employer retirement planning. The company was founded in 1889 and is based in Albany, New York. Pioneer Bancorp, Inc. operates as a subsidiary of Pioneer Bancorp, MHC.

About Nicolet Bankshares

Nicolet Bankshares, Inc. operates as the bank holding company for Nicolet National Bank that provides banking products and services for businesses and individuals in Wisconsin and Michigan. The company accepts checking, savings, and money market accounts; various certificates of deposit; and individual retirement accounts. It also offers commercial loans, including commercial, industrial, and business loans and lines of credit; commercial real estate loans; agricultural (AG) production and AG real estate loans; commercial real estate investment real estate loans; construction and land development loans; residential real estate loans, such as residential first lien and junior lien mortgages, home equity loans, lines of credit, and residential construction loans; and consumer loans. In addition, the company provides cash management, international banking, personal brokerage, safe deposit boxes, and trust and fiduciary services, as well as wealth management and retirement plan services. Further, it offers mortgage refinancing; online services, such as commercial, retail, and trust online banking; automated bill payment, mobile banking deposits and account access, and remote deposit capture services; and other services consisting of wire transfers, debit cards, credit cards, pre-paid gift cards, direct deposits, and official bank checks, as well as facilitates crop insurance products. The company was formerly known as Green Bay Financial Corporation and changed its name to Nicolet Bankshares, Inc. in March 2002. The company was incorporated in 2000 and is headquartered in Green Bay, Wisconsin.