Parke Bancorp (NASDAQ:PKBK – Get Free Report) and Prosperity Bancshares (NYSE:PB – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
Dividends
Parke Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. Prosperity Bancshares pays an annual dividend of $2.40 per share and has a dividend yield of 3.4%. Parke Bancorp pays out 20.8% of its earnings in the form of a dividend. Prosperity Bancshares pays out 41.6% 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. Prosperity Bancshares has raised its dividend for 27 consecutive years. Prosperity Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Parke Bancorp and Prosperity Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Parke Bancorp | 29.99% | 13.88% | 2.05% |
| Prosperity Bancshares | 29.95% | 7.39% | 1.43% |
Institutional & Insider Ownership
Volatility and Risk
Parke Bancorp has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500. Comparatively, Prosperity Bancshares has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Parke Bancorp and Prosperity Bancshares, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Parke Bancorp | 0 | 0 | 1 | 0 | 3.00 |
| Prosperity Bancshares | 1 | 8 | 5 | 0 | 2.29 |
Prosperity Bancshares has a consensus price target of $78.36, suggesting a potential upside of 9.51%. Given Prosperity Bancshares’ higher possible upside, analysts clearly believe Prosperity Bancshares is more favorable than Parke Bancorp.
Earnings & Valuation
This table compares Parke Bancorp and Prosperity Bancshares”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Parke Bancorp | $146.08 million | 2.72 | $37.78 million | $3.84 | 8.79 |
| Prosperity Bancshares | $1.74 billion | 4.15 | $542.84 million | $5.77 | 12.40 |
Prosperity Bancshares has higher revenue and earnings than Parke Bancorp. Parke Bancorp is trading at a lower price-to-earnings ratio than Prosperity Bancshares, indicating that it is currently the more affordable of the two stocks.
Summary
Prosperity Bancshares beats Parke Bancorp on 11 of the 17 factors compared between the two stocks.
About Parke Bancorp
Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.
About Prosperity Bancshares
Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery. In addition, it provides internet banking, mobile banking, trust and wealth management, retail brokerage, mortgage services, and treasury management, as well as debit and credit cards. The company was incorporated in 1983 and is headquartered in Houston, Texas.
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