Analyzing Brookline Bancorp (BRKL) and Umpqua (UMPQ)

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Brookline Bancorp (NASDAQ: BRKL) and Umpqua (NASDAQ:UMPQ) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.

Dividends

Brookline Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. Umpqua pays an annual dividend of $0.80 per share and has a dividend yield of 3.4%. Brookline Bancorp pays out 50.0% of its earnings in the form of a dividend. Umpqua pays out 74.8% 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.

Insider & Institutional Ownership

74.9% of Brookline Bancorp shares are held by institutional investors. Comparatively, 90.7% of Umpqua shares are held by institutional investors. 2.5% of Brookline Bancorp shares are held by company insiders. Comparatively, 1.0% of Umpqua shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Brookline Bancorp and Umpqua’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brookline Bancorp $295.22 million 5.16 $50.51 million $0.80 23.69
Umpqua $1.22 billion 4.28 $246.01 million $1.07 22.13

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

Volatility & Risk

Brookline Bancorp has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Umpqua has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Profitability

This table compares Brookline Bancorp and Umpqua’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brookline Bancorp 18.90% 7.99% 0.96%
Umpqua 22.15% 6.68% 1.04%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Brookline Bancorp and Umpqua, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookline Bancorp 0 2 0 0 2.00
Umpqua 1 6 4 0 2.27

Brookline Bancorp presently has a consensus price target of $16.25, suggesting a potential downside of 14.25%. Umpqua has a consensus price target of $23.77, suggesting a potential upside of 0.39%. Given Umpqua’s stronger consensus rating and higher possible upside, analysts plainly believe Umpqua is more favorable than Brookline Bancorp.

Summary

Umpqua beats Brookline Bancorp on 11 of the 16 factors compared between the two stocks.

About Brookline Bancorp

Brookline Bancorp, Inc. operates as the holding company for Brookline Bank, Bank Rhode Island, First Ipswich Bank, and Brookline Securities Corp that provide commercial, business, and retail banking services to corporate, municipal, and retail customers in the United States. Its deposit products include non-interest-bearing demand checking accounts, NOW accounts, savings accounts, and money market accounts. The company's loan portfolio comprises first mortgage loans secured by commercial, multi-family, and residential real estate properties; loans to business entities comprising commercial lines of credit; loans to condominium associations; loans and leases used to finance equipment used by small businesses; financing for construction and development projects; and home equity and other consumer loans. It also provides cash management, investment advisory, and online banking services, as well as invests in debt and equity securities. As of December 31, 2017, the Company operated 51 full-service banking offices in greater Boston, the north shore of Massachusetts, and Rhode Island. Brookline Bancorp, Inc. was founded in 1871 and is headquartered in Boston, Massachusetts.

About Umpqua

Umpqua Holdings Corporation, through its subsidiaries, provides commercial and retail banking, and retail brokerage services. It operates through four segments: Commercial Bank, Wealth Management, Retail Bank, and Home Lending. The company offers deposit products, including non-interest bearing checking, interest bearing checking and savings, and money market accounts, as well as certificates of deposit. It also provides loans for business and commercial customers, such as accounts receivable and inventory financing, multi-family and equipment loans, commercial equipment leases, international trade, real estate construction loans, permanent financing products, small business administration program financing, and residential mortgage loans, as well as capital markets and treasury management services. In addition, the company offers loan products for small businesses; commercial and industrial loans; residential real estate loans for the construction, purchase, and refinancing of residential owner-occupied and rental properties; and consumer loans comprising secured and unsecured personal loans, home equity and personal lines of credit, and motor vehicle loans. Further, it provides financial planning, trust, and investment services; broker dealer and investment advisory services; and technology-based services that include remote deposit capture, online banking, bill pay and treasury, mobile banking, voice response banking, automatic payroll deposit program, ATM, interactive product kiosks, and Website services. The company serves small businesses, middle market, and large commercial customers; individual investors; and high net worth individuals. As of December 31, 2017, it operated commercial banking centers in 333 locations in Oregon, Washington, California, Idaho, and Nevada. The company was founded in 1953 and is headquartered in Portland, Oregon.

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