National Bank of Canada (NASDAQ: PGC) and Peapack-Gladstone Financial Co. Common Stock (NASDAQ:PGC) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.
This table compares National Bank of Canada and Peapack-Gladstone Financial Co. Common Stock’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|National Bank of Canada||20.94%||18.59%||0.87%|
|Peapack-Gladstone Financial Co. Common Stock||22.54%||10.15%||0.98%|
Volatility and Risk
National Bank of Canada has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Peapack-Gladstone Financial Co. Common Stock has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.
Earnings & Valuation
This table compares National Bank of Canada and Peapack-Gladstone Financial Co. Common Stock’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|National Bank of Canada||$6.85 billion||2.49||$1.48 billion||$4.17||12.10|
|Peapack-Gladstone Financial Co. Common Stock||$173.35 million||3.62||$36.49 million||$1.94||17.00|
National Bank of Canada has higher revenue and earnings than Peapack-Gladstone Financial Co. Common Stock. National Bank of Canada is trading at a lower price-to-earnings ratio than Peapack-Gladstone Financial Co. Common Stock, indicating that it is currently the more affordable of the two stocks.
National Bank of Canada pays an annual dividend of $1.91 per share and has a dividend yield of 3.8%. Peapack-Gladstone Financial Co. Common Stock pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. National Bank of Canada pays out 45.8% of its earnings in the form of a dividend. Peapack-Gladstone Financial Co. Common Stock pays out 10.3% 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 and Institutional Ownership
0.1% of National Bank of Canada shares are owned by institutional investors. Comparatively, 72.3% of Peapack-Gladstone Financial Co. Common Stock shares are owned by institutional investors. 4.8% of Peapack-Gladstone Financial Co. Common Stock shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of current ratings for National Bank of Canada and Peapack-Gladstone Financial Co. Common Stock, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|National Bank of Canada||0||1||0||0||2.00|
|Peapack-Gladstone Financial Co. Common Stock||0||0||3||0||3.00|
Peapack-Gladstone Financial Co. Common Stock has a consensus price target of $38.75, indicating a potential upside of 17.50%. Given Peapack-Gladstone Financial Co. Common Stock’s stronger consensus rating and higher probable upside, analysts plainly believe Peapack-Gladstone Financial Co. Common Stock is more favorable than National Bank of Canada.
Peapack-Gladstone Financial Co. Common Stock beats National Bank of Canada on 10 of the 16 factors compared between the two stocks.
About National Bank of Canada
National Bank of Canada provides various financial products and services to retail, commercial, corporate, and institutional clients in Canada and internationally. It operates through Personal and Commercial, Wealth Management, Financial Markets, and U.S. Specialty Finance and International segments. The Personal and Commercial segment offers personal banking services, including transaction solutions, mortgage loans and home equity lines of credit, consumer loans, payment solutions, savings options, and tailored investment solutions; various insurance products; and commercial banking services, such as credit, and deposit and investment solutions, as well as international trade, foreign exchange transactions, payroll, cash management, insurance, electronic transactions, and complementary services. The Wealth Management segment provides investment solutions, trust services, banking services, lending services, and other wealth management solutions through internal and third-party distribution networks. The Financial Markets segment offers debt and equity underwriting; bank credit and risk management products and services; advisory services in the areas of mergers and acquisitions, and financing; and investment banking services comprising origination, underwriting, distribution, and liquidity services through secondary market activities, as well as macroeconomic and issuer-focused research services. The U.S. Specialty Finance and International segments provides specialty finance expertise; financial products and services to individuals and businesses in Cambodia; and the activities of targeted investments in certain emerging markets. The company provides its services through a network of 429 branches and 931 banking machines. The company was founded in 1859 and is headquartered in Montreal, Canada.
About Peapack-Gladstone Financial Co. Common Stock
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 Private Wealth Management. 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 and commercial mortgage, home equity lines of credit, and other second mortgage loans, as well as construction loans. In addition, it offers asset management services; personal trust services, including services as executor, trustee, administrator, custodian, and guardian; corporate trust services comprising services as trustee for pension and profit sharing plans; and other financial planning and advisory services. Further, the company operates automated teller machines at 20 locations; and provides telephone and Internet banking, merchant credit card, and customer support sales services. Its private banking clients include businesses, non-profits, and consumers; and wealth management clients comprise individuals, families, foundations, endowments, trusts, and estates. The company operates its private banking locations in Bedminster, Morristown, Princeton, and Teaneck, New Jersey; and wealth management branches in Somerset, Morris, Hunterdon, and Union counties. Peapack-Gladstone Financial Corporation was founded in 1921 and is based in Bedminster, New Jersey.
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