Peapack-Gladstone Financial (NASDAQ:PGC – Get Free Report) and AmeriServ Financial (NASDAQ:ASRV – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.
Analyst Ratings
This is a summary of current recommendations for Peapack-Gladstone Financial and AmeriServ Financial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Peapack-Gladstone Financial | 0 | 0 | 3 | 2 | 3.40 |
| AmeriServ Financial | 0 | 0 | 1 | 0 | 3.00 |
Peapack-Gladstone Financial presently has a consensus target price of $49.67, suggesting a potential upside of 4.05%. Given Peapack-Gladstone Financial’s stronger consensus rating and higher possible upside, research analysts plainly believe Peapack-Gladstone Financial is more favorable than AmeriServ Financial.
Volatility and Risk
Profitability
This table compares Peapack-Gladstone Financial and AmeriServ Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Peapack-Gladstone Financial | 9.60% | 6.75% | 0.59% |
| AmeriServ Financial | 6.20% | 4.72% | 0.38% |
Dividends
Peapack-Gladstone Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. AmeriServ Financial pays an annual dividend of $0.12 per share and has a dividend yield of 3.1%. Peapack-Gladstone Financial pays out 8.1% of its earnings in the form of a dividend. AmeriServ Financial pays out 36.4% 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.
Earnings and Valuation
This table compares Peapack-Gladstone Financial and AmeriServ Financial”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 | $293.79 million | 2.88 | $37.33 million | $2.48 | 19.25 |
| AmeriServ Financial | $88.34 million | 0.74 | $5.61 million | $0.33 | 11.62 |
Peapack-Gladstone Financial has higher revenue and earnings than AmeriServ Financial. AmeriServ Financial is trading at a lower price-to-earnings ratio than Peapack-Gladstone Financial, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
72.8% of Peapack-Gladstone Financial shares are held by institutional investors. Comparatively, 31.5% of AmeriServ Financial shares are held by institutional investors. 5.8% of Peapack-Gladstone Financial shares are held by company insiders. Comparatively, 7.9% of AmeriServ Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Peapack-Gladstone Financial beats AmeriServ Financial on 15 of the 17 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 AmeriServ Financial
AmeriServ Financial, Inc. is a holding company, which engages in the provision of consumer, mortgage and commercial financial products and services through its subsidiary. It operates through the following segments: Community Banking, Wealth Management, and Investment or Parent. The Community Banking segment includes both retail and commercial banking activities. The Wealth Management segment involves in the operations of a Trust Company, West Chester Capital Advisors an investment advisory firm, and Financial Services. The Investment or Parent segment offers investment securities, borrowing activities, and general corporate expenses. The company was founded in January 1983 and is headquartered in Johnstown, PA.
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