Contrasting Peoples Bancorp of North Carolina (NASDAQ:PEBK) and Signature Bank (NASDAQ:SBNY)

Signature Bank (NASDAQ:SBNY) and Peoples Bancorp of North Carolina (NASDAQ:PEBK) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of current recommendations for Signature Bank and Peoples Bancorp of North Carolina, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Signature Bank 0 3 6 1 2.80
Peoples Bancorp of North Carolina 0 0 0 0 N/A

Signature Bank currently has a consensus price target of $137.38, indicating a potential upside of 10.11%. Given Signature Bank’s higher probable upside, analysts clearly believe Signature Bank is more favorable than Peoples Bancorp of North Carolina.

Risk & Volatility

Signature Bank has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Peoples Bancorp of North Carolina has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Profitability

This table compares Signature Bank and Peoples Bancorp of North Carolina’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Signature Bank 31.37% 13.09% 1.24%
Peoples Bancorp of North Carolina 21.82% 11.34% 1.28%

Earnings & Valuation

This table compares Signature Bank and Peoples Bancorp of North Carolina’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Signature Bank $1.73 billion 3.91 $505.34 million $11.28 11.06
Peoples Bancorp of North Carolina $61.52 million 3.00 $13.38 million N/A N/A

Signature Bank has higher revenue and earnings than Peoples Bancorp of North Carolina.

Institutional and Insider Ownership

90.0% of Signature Bank shares are owned by institutional investors. Comparatively, 33.5% of Peoples Bancorp of North Carolina shares are owned by institutional investors. 11.3% of Peoples Bancorp of North Carolina shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Signature Bank pays an annual dividend of $2.24 per share and has a dividend yield of 1.8%. Peoples Bancorp of North Carolina pays an annual dividend of $0.56 per share and has a dividend yield of 1.8%. Signature Bank pays out 19.9% of its earnings in the form of a dividend.

Summary

Signature Bank beats Peoples Bancorp of North Carolina on 11 of the 15 factors compared between the two stocks.

About Signature Bank

Signature Bank provides various business and personal banking products and services. It accepts various deposit products, including commercial checking accounts, money market accounts, escrow deposit accounts, cash concentration accounts, interest-bearing and non-interest-bearing checking accounts, certificates of deposit, time deposits, and other cash management products. The company also offers loan products comprising commercial and industrial loans; real estate loans, such as loans secured by commercial and residential properties, and construction and land loans; temporary financing for commercial and residential properties; letters of credit; and personal lines of credit and loans to acquire personal assets, as well as asset-based lending, mortgages, home equity loans, and credit card accounts. In addition, it provides investment, brokerage, and asset management products and services; retirement products, such as individual retirement accounts and administrative services for retirement vehicles, which include pension, profit sharing, and 401(k) plans to its clients, as well as business retirement accounts; and a range of financing and leasing products consisting of equipment, transportation, taxi medallion, commercial marine, and municipal and national franchise financing services. Further, the company offers wealth management services to its high net worth personal clients; and a range of individual and group insurance products that comprise health, life, disability, and long-term care insurance products as an agent. Additionally, it purchases, securitizes, and sells guaranteed portions of the U.S. small business administration loans. As of December 31, 2017, the company operated 30 private client offices located in the New York metropolitan area, which included Manhattan, Brooklyn, Westchester, Long Island, Queens, the Bronx, Staten Island, and Connecticut. Signature Bank was incorporated in 2000 and is headquartered in New York, New York.

About Peoples Bancorp of North Carolina

Peoples Bancorp of North Carolina, Inc. operates as a bank holding company for Peoples Bank that provides various banking products and services to individuals and small to medium-sized businesses. It offers various deposit products. The company's loan products comprise commercial real estate, commercial, construction and land development, single-family residential, residential mortgage, individual taxpayer identification number mortgage loans, as well as agricultural loans. It also provides investment counseling and non-deposit investment products, such as stocks, bonds, mutual funds, tax deferred annuities, and related brokerage services; and real estate appraisal and brokerage services. In addition, the company operates as a clearing-house for the provision of appraisal services for community banks; and acquires, manages, and disposes real property, other collateral, and other assets obtained in the ordinary course of collecting debts. As of December 31, 2018, it operated 20 banking offices located in Lincolnton, Newton, Denver, Catawba, Conover, Maiden, Claremont, Hiddenite, Hickory, Charlotte, Cornelius, Mooresville, Raleigh, and Cary in North Carolina. The company also operates loan production offices in Denver and Durham, North Carolina. Peoples Bancorp of North Carolina, Inc. was founded in 1912 and is headquartered in Newton, North Carolina.

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