Comparing Provident Bancorp (PVBC) and BankUnited (BKU)

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BankUnited (NYSE:BKU) and Provident Bancorp (NASDAQ:PVBC) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Valuation & Earnings

This table compares BankUnited and Provident Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BankUnited $1.58 billion 2.40 $324.87 million $2.36 15.60
Provident Bancorp $46.52 million 4.77 $9.32 million N/A N/A

BankUnited has higher revenue and earnings than Provident Bancorp.

Risk & Volatility

BankUnited has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Provident Bancorp has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Dividends

BankUnited pays an annual dividend of $0.84 per share and has a dividend yield of 2.3%. Provident Bancorp does not pay a dividend. BankUnited pays out 35.6% of its earnings in the form of a dividend.

Institutional & Insider Ownership

95.0% of BankUnited shares are held by institutional investors. Comparatively, 22.2% of Provident Bancorp shares are held by institutional investors. 2.3% of BankUnited shares are held by insiders. Comparatively, 3.3% of Provident Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for BankUnited and Provident Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BankUnited 0 4 5 0 2.56
Provident Bancorp 0 0 0 0 N/A

BankUnited presently has a consensus price target of $40.33, suggesting a potential upside of 9.54%. Given BankUnited’s higher possible upside, research analysts plainly believe BankUnited is more favorable than Provident Bancorp.

Profitability

This table compares BankUnited and Provident Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BankUnited 20.31% 10.71% 1.06%
Provident Bancorp 20.05% 7.78% 1.02%

Summary

BankUnited beats Provident Bancorp on 10 of the 14 factors compared between the two stocks.

BankUnited Company Profile

BankUnited, Inc. operates as the bank holding company for BankUnited, National Association that provides a range of banking services to small and medium sized businesses, and individual and corporate customers in the United States. The company offers deposit products, such as checking, money market deposit, and savings accounts, as well as certificates of deposit; and treasury management services. Its loans portfolio includes small business loans, commercial real estate loans, equipment loans and leases, term loans, formula-based loans, municipal and non-profit loans and leases, commercial and residential mortgage warehouse lines of credit, letters of credit, and consumer loans, as well as purchases performing residential loans. The company also offers integrated on-line, mobile, and telephone banking services. As of December 31, 2017, it operated through a network of 87 branches located in 15 Florida counties; and 6 banking centers in the New York metropolitan area, as well as 89 automated teller machines. The company was formerly known as BU Financial Corporation. BankUnited, Inc. was founded in 2009 and is headquartered in Miami Lakes, Florida.

Provident Bancorp Company Profile

Provident Bancorp, Inc. is a Massachusetts corporation that was formed in 2011 by The Provident Bank to be its holding company. Approximately 52.1% of Provident Bancorp, Inc. outstanding shares are owned by Provident Bancorp, a Massachusetts corporation and a mutual holding company. The Provident Bank, a subsidiary of Provident Bancorp, Inc., is an innovative, commercial bank that finds solutions for business and private clients. We are committed to strengthening the economic development of the regions we serve, by working closely with businesses and private clients and delivering superior products and high-touch services to meet their banking needs. The Provident has offices in Massachusetts and New Hampshire. All deposits are insured in full through a combination of insurance provided by the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF).

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