German American Bancorp. (NASDAQ: GABC) and Univest Co. of Pennsylvania (NASDAQ:UVSP) are both small-cap financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.
This is a breakdown of current ratings for German American Bancorp. and Univest Co. of Pennsylvania, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|German American Bancorp.||0||4||0||0||2.00|
|Univest Co. of Pennsylvania||0||2||1||0||2.33|
German American Bancorp. currently has a consensus target price of $39.33, indicating a potential upside of 5.71%. Univest Co. of Pennsylvania has a consensus target price of $33.33, indicating a potential upside of 16.75%. Given Univest Co. of Pennsylvania’s stronger consensus rating and higher possible upside, analysts clearly believe Univest Co. of Pennsylvania is more favorable than German American Bancorp..
Risk and Volatility
German American Bancorp. has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Univest Co. of Pennsylvania has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.
Valuation & Earnings
This table compares German American Bancorp. and Univest Co. of Pennsylvania’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|German American Bancorp.||$135.38 million||6.30||$35.18 million||$1.71||21.76|
|Univest Co. of Pennsylvania||$182.57 million||4.53||$19.50 million||$1.52||18.78|
German American Bancorp. has higher earnings, but lower revenue than Univest Co. of Pennsylvania. Univest Co. of Pennsylvania is trading at a lower price-to-earnings ratio than German American Bancorp., indicating that it is currently the more affordable of the two stocks.
German American Bancorp. pays an annual dividend of $0.52 per share and has a dividend yield of 1.4%. Univest Co. of Pennsylvania pays an annual dividend of $0.80 per share and has a dividend yield of 2.8%. German American Bancorp. pays out 30.4% of its earnings in the form of a dividend. Univest Co. of Pennsylvania pays out 52.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This table compares German American Bancorp. and Univest Co. of Pennsylvania’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|German American Bancorp.||27.52%||11.28%||1.31%|
|Univest Co. of Pennsylvania||18.71%||8.35%||0.99%|
Institutional and Insider Ownership
36.4% of German American Bancorp. shares are held by institutional investors. Comparatively, 58.2% of Univest Co. of Pennsylvania shares are held by institutional investors. 8.5% of German American Bancorp. shares are held by insiders. Comparatively, 3.6% of Univest Co. of Pennsylvania shares are held by 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.
German American Bancorp. beats Univest Co. of Pennsylvania on 10 of the 16 factors compared between the two stocks.
German American Bancorp. Company Profile
German American Bancorp, Inc. is a bank holding company. As of December 31, 2016, the Company, through its banking subsidiary German American Bancorp, operated 51 banking offices in 19 contiguous southern Indiana counties and one northern Kentucky county. Its segments are core banking, trust and investment advisory services, insurance, and other. The core banking segment involves attracting deposits from the general public and using such funds to originate consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, primarily in its local markets. The core banking segment also involves the sale of residential mortgage loans in the secondary market. The trust and investment advisory services segment involves providing trust, investment advisory, and brokerage services to customers. The insurance segment offers a range of personal and corporate property and casualty insurance products, in its banking subsidiary’s local markets.
Univest Co. of Pennsylvania Company Profile
Univest Corporation of Pennsylvania is the bank holding company of Univest Bank and Trust Co. (the Bank). The Bank is a Pennsylvania state-chartered bank and trust company. The Company’s business segments include Banking, Wealth Management and Insurance. The Banking segment provides financial services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking services and equipment lease financing. The Wealth Management segment offers trust and investment advisory services, guardian and custodian of employee benefits and other trust and brokerage services, as well as a registered investment advisory managing private investment accounts for both individuals and institutions. The Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, group life and health coverage, employee benefit solutions, personal insurance lines and human resources consulting.
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