Webster Financial (NASDAQ: PNBK) and Patriot National Bancorp (NASDAQ:PNBK) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.
This table compares Webster Financial and Patriot National Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Patriot National Bancorp||9.59%||6.42%||0.50%|
Institutional and Insider Ownership
92.2% of Webster Financial shares are held by institutional investors. Comparatively, 4.9% of Patriot National Bancorp shares are held by institutional investors. 2.0% of Webster Financial shares are held by insiders. Comparatively, 78.6% of Patriot National Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Webster Financial pays an annual dividend of $1.32 per share and has a dividend yield of 2.0%. Patriot National Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Webster Financial pays out 51.0% of its earnings in the form of a dividend. Webster Financial has increased its dividend for 7 consecutive years. Webster Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Webster Financial has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Patriot National Bancorp has a beta of -0.16, indicating that its share price is 116% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Webster Financial and Patriot National Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Patriot National Bancorp||0||0||1||0||3.00|
Webster Financial presently has a consensus target price of $62.22, indicating a potential downside of 4.73%. Patriot National Bancorp has a consensus target price of $24.00, indicating a potential upside of 22.45%. Given Patriot National Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Patriot National Bancorp is more favorable than Webster Financial.
Earnings & Valuation
This table compares Webster Financial and Patriot National Bancorp’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Webster Financial||$1.17 billion||5.13||$255.43 million||$2.59||25.22|
|Patriot National Bancorp||$34.29 million||2.23||$4.14 million||N/A||N/A|
Webster Financial has higher revenue and earnings than Patriot National Bancorp.
Webster Financial beats Patriot National Bancorp on 12 of the 16 factors compared between the two stocks.
About Webster Financial
Webster Financial Corporation operates as the holding company for Webster Bank, National Association that provides financial services to individuals, families, and businesses in the United States. It operates through four segments: Commercial Banking, Community Banking, HSA Bank, and Private Banking. The Commercial Banking segment provides lending, deposit, and cash management services to middle market companies; and asset-based lending, commercial real estate, and equipment finance, as well as treasury and payment services, which include government and institutional banking. The Community Banking segment offers deposit and fee-based services, residential mortgages, home equity lines/loans, unsecured consumer loans, and credit cards to consumers, as well as investment and securities-related services, including brokerage and investment advice through a strategic partnership with LPL Financial Holdings Inc. This segment also provides credit, deposit, and cash flow management products to businesses and professional service firms. The HSA Bank segment offers health savings accounts, health reimbursement accounts, flexible spending accounts, and other financial solutions to employers for the benefit of their employees and individuals. The Private Banking segment provides relationship banking services for high net worth clients, not-for-profit organizations, and business clients for asset management, trust, loan, and deposit products and financial planning services. The company also provides its services telephone and mobile banking services, as well as through its Website. As of February 14, 2018, it operated 167 banking centers and 334 ATMs. Webster Financial Corporation was founded in 1935 and is headquartered in Waterbury, Connecticut.
About Patriot National Bancorp
Patriot National Bancorp, Inc. operates as the bank holding company for Patriot Bank, N.A. that provides community banking services to individuals, small and medium-sized businesses, and professionals. The company offers consumer and commercial deposit accounts, such as checking accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, time certificates of deposit, savings accounts, individual retirement accounts, and health savings accounts, as well as certificate of deposit account registry service. Its loan portfolio comprises commercial real estate, commercial business, construction, and consumer loans. The company also offers automated clearing house transfers, lockbox, Internet banking, bill payment, remote deposit capture, debit card, money order, traveler's check, and automatic teller machine services. Patriot National Bancorp, Inc. provides its products and services through its main office in Stamford; seven branch offices in Connecticut; and two branch offices in New York. The company was founded in 1994 and is headquartered in Stamford, Connecticut. Patriot National Bancorp, Inc. is a subsidiary of PNBK Holdings LLC.
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