People's United Financial (PBCT) and PCSB Financial (PCSB) Financial Contrast

People's United Financial (NASDAQ: PBCT) and PCSB Financial (NASDAQ:PCSB) are both financials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for People's United Financial and PCSB Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
People's United Financial 2 4 0 0 1.67
PCSB Financial 0 0 1 0 3.00

People's United Financial currently has a consensus target price of $18.96, suggesting a potential downside of 0.27%. PCSB Financial has a consensus target price of $19.00, suggesting a potential downside of 5.71%. Given People's United Financial’s higher possible upside, equities analysts clearly believe People's United Financial is more favorable than PCSB Financial.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
People's United Financial $1.66 billion 3.98 $337.20 million $0.97 19.60
PCSB Financial $45.04 million 8.13 $3.22 million N/A N/A

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

Profitability

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

Net Margins Return on Equity Return on Assets
People's United Financial 20.37% 6.69% 0.84%
PCSB Financial 3.98% 3.05% 0.49%

Insider and Institutional Ownership

75.5% of People's United Financial shares are owned by institutional investors. Comparatively, 40.4% of PCSB Financial shares are owned by institutional investors. 2.7% of People's United Financial shares are owned by company insiders. Comparatively, 1.6% of PCSB Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

People's United Financial pays an annual dividend of $0.69 per share and has a dividend yield of 3.6%. PCSB Financial does not pay a dividend. People's United Financial pays out 71.1% of its earnings in the form of a dividend. People's United Financial has increased its dividend for 11 consecutive years.

Summary

People's United Financial beats PCSB Financial on 10 of the 14 factors compared between the two stocks.

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.

PCSB Financial Company Profile

PCSB Financial Corporation will be the holding company of PCSB Bank (the Bank). The Bank is a mutual savings bank. The Bank attracts deposits from the general public and utilizes those funds primarily to originate and purchase residential real estate, commercial real estate and business loans, and to purchase investment securities. As of September 30, 2016, the Bank had consolidated total assets of $1.25 billion, total deposits of $1.12 billion and equity of $111.5 million. The Bank’s provides commercial lending and deposit opportunities for its customers. The Bank operates in 15 locations, offices located in Dutchess, Putnam, Rockland and Westchester Counties in New York. The Bank’s subsidiaries include PCSB Commercial Bank, PCSB Funding Corp. and PCSB Realty Ltd.

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