Comparing Sterling Bancorp (SBT) and People's United Financial (PBCT)

Sterling Bancorp (NASDAQ: SBT) and People's United Financial (NASDAQ:PBCT) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, valuation, risk, institutional ownership, dividends, profitability and earnings.

Insider and Institutional Ownership

28.8% of Sterling Bancorp shares are owned by institutional investors. Comparatively, 76.6% of People's United Financial shares are owned by institutional investors. 3.0% of Sterling Bancorp shares are owned by insiders. Comparatively, 2.5% of People's United Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Sterling Bancorp and People's United Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sterling Bancorp 0 0 1 0 3.00
People's United Financial 1 5 1 0 2.00

Sterling Bancorp presently has a consensus target price of $14.50, indicating a potential upside of 8.13%. People's United Financial has a consensus target price of $19.93, indicating a potential upside of 7.32%. Given Sterling Bancorp’s stronger consensus rating and higher probable upside, equities analysts plainly believe Sterling Bancorp is more favorable than People's United Financial.

Profitability

This table compares Sterling Bancorp and People's United Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sterling Bancorp N/A N/A N/A
People's United Financial 21.64% 7.16% 0.90%

Dividends

Sterling Bancorp pays an annual dividend of $0.01 per share and has a dividend yield of 0.1%. People's United Financial pays an annual dividend of $0.70 per share and has a dividend yield of 3.8%. People's United Financial pays out 67.3% of its earnings in the form of a dividend. People's United Financial has raised its dividend for 11 consecutive years. People's United Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Sterling Bancorp and People's United Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sterling Bancorp $139.34 million 5.10 $37.97 million N/A N/A
People's United Financial $1.66 billion 3.89 $337.20 million $1.04 17.86

People's United Financial has higher revenue and earnings than Sterling Bancorp.

Summary

People's United Financial beats Sterling Bancorp on 8 of the 13 factors compared between the two stocks.

Sterling Bancorp Company Profile

Sterling Bancorp, Inc. is a unitary thrift holding company. Its wholly owned subsidiary, Sterling Bank and Trust, F.S.B., has primary branch operations in San Francisco and Los Angeles, California and New York City, and a loan production office in Seattle, Washington. Sterling offers a broad range of loan products to the residential and commercial markets, as well as retail and business banking services. Sterling also has an operations center and a branch in Southfield, Michigan. Sterling was named as the top performing community bank in the United States with total assets between $1 billion and $10 billion in 2017 by SNL/S&P Global Market Intelligence.

People's United Financial Company Profile

People’s United Financial, Inc. is a bank holding company and a financial holding company of People’s United Bank (the Bank). The Bank is engaged in providing commercial banking, retail banking and wealth management services to individual, corporate and municipal customers. The Company operates through two segments: Commercial Banking and Retail Banking. Commercial Banking segment is engaged in commercial real estate lending, commercial and industrial lending, and commercial deposit gathering activities. It offers cash management, correspondent banking, municipal banking, institutional trust services, corporate trust, insurance services and private banking, among others. Retail Banking segment provides consumer lending (including residential mortgage and home equity lending) and consumer deposit gathering activities. The Retail Banking segment also includes brokerage, financial advisory services, investment management services, and life insurance and non-institutional trust services.

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