Banc of California (NYSE:BANC) and New York Community Bancorp (NYSE:NYCB) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.
Dividends
Banc of California pays an annual dividend of $0.24 per share and has a dividend yield of 1.7%. New York Community Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 7.0%. Banc of California pays out 30.4% of its earnings in the form of a dividend. New York Community Bancorp pays out 88.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Banc of California has raised its dividend for 1 consecutive years and New York Community Bancorp has raised its dividend for 1 consecutive years.
Volatility and Risk
Banc of California has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500. Comparatively, New York Community Bancorp has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.
Earnings & Valuation
This table compares Banc of California and New York Community Bancorp's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Banc of California | $403.23 million | 1.77 | $23.76 million | $0.79 | 18.03 |
| New York Community Bancorp | $1.89 billion | 2.37 | $395.04 million | $0.77 | 12.53 |
New York Community Bancorp has higher revenue and earnings than Banc of California. New York Community Bancorp is trading at a lower price-to-earnings ratio than Banc of California, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
75.2% of Banc of California shares are owned by institutional investors. Comparatively, 60.8% of New York Community Bancorp shares are owned by institutional investors. 10.9% of Banc of California shares are owned by insiders. Comparatively, 3.3% of New York Community Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Banc of California and New York Community Bancorp's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Banc of California | 1.62% | 3.88% | 0.34% |
| New York Community Bancorp | 23.07% | 6.69% | 0.76% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Banc of California and New York Community Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Banc of California | 0 | 1 | 3 | 0 | 2.75 |
| New York Community Bancorp | 0 | 7 | 5 | 0 | 2.42 |
Banc of California currently has a consensus target price of $13.1250, indicating a potential downside of 7.83%. New York Community Bancorp has a consensus target price of $11.4167, indicating a potential upside of 18.31%. Given New York Community Bancorp's higher possible upside, analysts clearly believe New York Community Bancorp is more favorable than Banc of California.
Summary
New York Community Bancorp beats Banc of California on 10 of the 16 factors compared between the two stocks.
