Provident Financial Services (NYSE:PFS – Get Free Report) and Inter & Co. Inc. (NASDAQ:INTR – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.
Dividends
Provident Financial Services pays an annual dividend of $0.96 per share and has a dividend yield of 4.2%. Inter & Co. Inc. pays an annual dividend of $0.11 per share and has a dividend yield of 2.8%. Provident Financial Services pays out 40.3% of its earnings in the form of a dividend. Inter & Co. Inc. pays out 16.7% 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.
Institutional and Insider Ownership
72.0% of Provident Financial Services shares are held by institutional investors. Comparatively, 22.9% of Inter & Co. Inc. shares are held by institutional investors. 3.0% of Provident Financial Services shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Provident Financial Services and Inter & Co. Inc.”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Provident Financial Services | $1.38 billion | 2.17 | $291.16 million | $2.38 | 9.65 |
| Inter & Co. Inc. | $1.93 billion | 0.91 | $235.05 million | $0.66 | 6.00 |
Provident Financial Services has higher earnings, but lower revenue than Inter & Co. Inc.. Inter & Co. Inc. is trading at a lower price-to-earnings ratio than Provident Financial Services, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Provident Financial Services and Inter & Co. Inc.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Provident Financial Services | 21.73% | 10.82% | 1.22% |
| Inter & Co. Inc. | 11.23% | 14.94% | 1.57% |
Risk and Volatility
Provident Financial Services has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Inter & Co. Inc. has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Provident Financial Services and Inter & Co. Inc., as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Provident Financial Services | 0 | 2 | 4 | 1 | 2.86 |
| Inter & Co. Inc. | 0 | 4 | 3 | 0 | 2.43 |
Provident Financial Services presently has a consensus target price of $26.79, suggesting a potential upside of 16.64%. Inter & Co. Inc. has a consensus target price of $9.30, suggesting a potential upside of 134.85%. Given Inter & Co. Inc.’s higher probable upside, analysts clearly believe Inter & Co. Inc. is more favorable than Provident Financial Services.
Summary
Provident Financial Services beats Inter & Co. Inc. on 11 of the 17 factors compared between the two stocks.
About Provident Financial Services
Provident Financial Services, Inc. is the bank holding company for Provident Bank, a community-focused financial institution. The bank traces its history to 1839, when it was established in Jersey City, New Jersey. Provident Bank provides personal and business banking services, including deposit accounts, residential mortgages, consumer loans and commercial lending. It also offers wealth management, trust and fiduciary services. The company primarily serves customers in New Jersey and the surrounding New York metropolitan region, with operations extending into eastern Pennsylvania.
About Inter & Co. Inc.
Inter & Co. Inc. is a digital financial services company whose platform is centered on Banco Inter, a Brazilian digital bank. The company offers banking services such as accounts, payments, credit and debit cards, lending, and financial products, including investment and insurance offerings. Its broader digital platform also includes shopping and lifestyle services, as well as tools for customers making international transactions. Inter serves customers primarily in Brazil and has expanded its offerings to include services for clients in the United States.
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