Peoples Bancorp (NASDAQ:PEBO) and Henderson Investment (OTCMKTS:HDVTY) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.
Earnings & Valuation
This table compares Peoples Bancorp and Henderson Investment's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Peoples Bancorp | $234.37 million | 2.80 | $53.69 million | $2.93 | 11.42 |
Henderson Investment | $217.81 million | 0.76 | $7.91 million | N/A | N/A |
Peoples Bancorp has higher revenue and earnings than Henderson Investment.
Dividends
Peoples Bancorp pays an annual dividend of $1.40 per share and has a dividend yield of 4.2%. Henderson Investment pays an annual dividend of $0.01 per share and has a dividend yield of 3.7%. Peoples Bancorp pays out 47.8% of its earnings in the form of a dividend. Peoples Bancorp has increased its dividend for 5 consecutive years. Peoples Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Peoples Bancorp and Henderson Investment's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Peoples Bancorp | 12.87% | 5.60% | 0.71% |
Henderson Investment | N/A | N/A | N/A |
Volatility and Risk
Peoples Bancorp has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Henderson Investment has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for Peoples Bancorp and Henderson Investment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Peoples Bancorp | 0 | 2 | 3 | 0 | 2.60 |
Henderson Investment | 0 | 0 | 0 | 0 | N/A |
Peoples Bancorp presently has a consensus price target of $35.3750, indicating a potential upside of 5.75%. Given Peoples Bancorp's higher possible upside, research analysts plainly believe Peoples Bancorp is more favorable than Henderson Investment.
Insider and Institutional Ownership
56.4% of Peoples Bancorp shares are owned by institutional investors. 2.7% of Peoples Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Peoples Bancorp beats Henderson Investment on 13 of the 14 factors compared between the two stocks.