Popular (NASDAQ:BPOP – Get Free Report) and Peoples Financial (OTCMKTS:PFBX – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.
Dividends
Popular pays an annual dividend of $3.00 per share and has a dividend yield of 2.3%. Peoples Financial pays an annual dividend of $0.36 per share and has a dividend yield of 1.7%. Popular pays out 24.4% of its earnings in the form of a dividend. Peoples Financial pays out 42.4% 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.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Popular and Peoples Financial, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Popular | 0 | 1 | 10 | 1 | 3.00 |
| Peoples Financial | 0 | 0 | 0 | 0 | 0.00 |
Institutional & Insider Ownership
87.3% of Popular shares are held by institutional investors. Comparatively, 32.8% of Peoples Financial shares are held by institutional investors. 2.2% of Popular shares are held by insiders. Comparatively, 28.1% of Peoples Financial shares are held 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.
Valuation & Earnings
This table compares Popular and Peoples Financial”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Popular | $4.44 billion | 1.90 | $833.16 million | $12.32 | 10.55 |
| Peoples Financial | $35.66 million | 2.72 | $3.91 million | $0.85 | 24.72 |
Popular has higher revenue and earnings than Peoples Financial. Popular is trading at a lower price-to-earnings ratio than Peoples Financial, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Popular has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Peoples Financial has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.
Profitability
This table compares Popular and Peoples Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Popular | 18.75% | 13.70% | 1.10% |
| Peoples Financial | 10.97% | 3.99% | 0.50% |
Summary
Popular beats Peoples Financial on 15 of the 18 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 Peoples Financial
Peoples Financial Corporation operates as the bank holding company for The Peoples Bank that provides banking, financial, and trust services to government entities, individuals, and small and commercial businesses in Mississippi. The company accepts various deposits, such as interest and non-interest-bearing checking accounts, savings accounts, certificates of deposit, and individual retirement accounts (IRAs). It offers business, commercial, real estate, construction, personal, and installment loans; and personal trust, agencies, and estate services, including living and testamentary trusts, executorships, guardianships, and conservatorships. In addition, the company provides self-directed IRAs; and escrow management, stock transfer, and bond paying agency accounts to corporate customers. Further, it offers other services consisting of safe deposit box rental, wire transfer, night drop facilities, collection, cash management, and Internet banking services. the company provides services to customers of various industries, such as seafood, retail, hospitality, hotel/motel, gaming, and construction. Peoples Financial Corporation was founded in 1896 and is headquartered in Biloxi, Mississippi.
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