Critical Survey: Peapack-Gladstone Financial (NASDAQ:PGC) versus University Bancorp (OTCMKTS:UNIB)

Peapack-Gladstone Financial (NASDAQ:PGC) and University Bancorp (OTCMKTS:UNIB) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Valuation & Earnings

This table compares Peapack-Gladstone Financial and University Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peapack-Gladstone Financial	$444.61 million	1.54	$37.33 million	$2.11	18.49
University Bancorp	$137.51 million	0.83	$9.02 million	N/A	N/A

Peapack-Gladstone Financial has higher revenue and earnings than University Bancorp.

Institutional & Insider Ownership

72.8% of Peapack-Gladstone Financial shares are owned by institutional investors. 5.8% of Peapack-Gladstone Financial shares are owned by insiders. Comparatively, 63.7% of University Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Peapack-Gladstone Financial has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, University Bancorp has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500.

Dividends

Peapack-Gladstone Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. University Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 1.4%. Peapack-Gladstone Financial pays out 9.5% of its earnings in the form of a dividend.

Profitability

This table compares Peapack-Gladstone Financial and University Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peapack-Gladstone Financial	8.40%	5.85%	0.51%
University Bancorp	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and price targets for Peapack-Gladstone Financial and University Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peapack-Gladstone Financial	0	2	2	0	2.50
University Bancorp	0	0	0	0	0.00

Peapack-Gladstone Financial presently has a consensus price target of $40.50, suggesting a potential upside of 3.79%. Given Peapack-Gladstone Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Peapack-Gladstone Financial is more favorable than University Bancorp.

Summary

Peapack-Gladstone Financial beats University Bancorp on 11 of the 14 factors compared between the two stocks.

About Peapack-Gladstone Financial

Peapack-Gladstone Financial Corporation operates as the bank holding company for Peapack-Gladstone Bank that provides private banking and wealth management services in the United States. The company operates in two segments, Banking and Peapack Private. It offers checking and savings accounts, money market and interest-bearing checking accounts, certificates of deposit, and individual retirement accounts. The company also provides working capital lines of credit, term loans for fixed asset acquisitions, commercial mortgages, multi-family mortgages, and other forms of asset-based financing services; and residential mortgages, home equity lines of credit, and other second mortgage loans. In addition, it offers corporate and industrial (C&I) and equipment finance, commercial real estate, multifamily, residential, and consumer lending activities; treasury management services; C&I advisory services; escrow management; deposit generation; investment management services; personal trust services, including services as executor, trustee, administrator, custodian, and guardian; and other financial planning, tax preparation, and advisory services. Further, the company provides telephone and Internet banking, merchant credit card, and customer support sales services. Its private banking clients include businesses, non-profits, and consumers; wealth management clients comprise individuals, families, foundations, endowments, trusts, and estates; and commercial loan clients include business owners, professionals, retailers, contractors, and real estate investors. The company operates its private banking locations in Bedminster, Morristown, Princeton, and Teaneck, New Jersey; and branches in Somerset, Morris, Hunterdon, and Union counties, as well as operates automated teller machines. Peapack-Gladstone Financial Corporation was founded in 1921 and is headquartered in Bedminster, New Jersey.

About University Bancorp

University Bancorp, Inc. operates as the bank holding company for University Bank that provides various personal, business, and community banking services in the United States. It offers checking, NOW, savings, money market, time deposit, and certificates of deposit accounts. The company's consumer loans include home equity, short term, automobile, personal, and recreational vehicle loans, as well as home equity lines of credits; SBA, commercial real estate, equipment, home improvement, and other instalment loans; and non-profit loans, as well as working capital lines of credit. In addition, the company provides foreign currency exchange; reverse mortgage; online banking and bill pay; online reorder checks; wire transfer; and courier services, as well as credit card and ATM services. Further, it offers life, health, property, and casualty insurance products, as well as investment products, including annuities. University Bancorp, Inc. was founded in 1890 and is based in Ann Arbor, Michigan.