Provident Financial Services (NYSE:PFS – Get Free Report) and Grupo Aval Acciones y Valores (NYSE:AVAL – Get Free Report) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, dividends, analyst recommendations, institutional ownership, valuation and profitability.
Risk and Volatility
Provident Financial Services has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Grupo Aval Acciones y Valores has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.
Dividends
Provident Financial Services pays an annual dividend of $0.96 per share and has a dividend yield of 4.2%. Grupo Aval Acciones y Valores pays an annual dividend of $0.16 per share and has a dividend yield of 3.4%. Provident Financial Services pays out 40.0% of its earnings in the form of a dividend. Grupo Aval Acciones y Valores pays out 40.0% 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.
Analyst Ratings
This is a breakdown of current ratings and price targets for Provident Financial Services and Grupo Aval Acciones y Valores, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Provident Financial Services | 0 | 2 | 4 | 1 | 2.86 |
| Grupo Aval Acciones y Valores | 1 | 2 | 0 | 0 | 1.67 |
Provident Financial Services currently has a consensus target price of $26.79, indicating a potential upside of 15.84%. Grupo Aval Acciones y Valores has a consensus target price of $5.00, indicating a potential upside of 5.64%. Given Provident Financial Services’ stronger consensus rating and higher possible upside, research analysts clearly believe Provident Financial Services is more favorable than Grupo Aval Acciones y Valores.
Institutional and Insider Ownership
72.0% of Provident Financial Services shares are owned by institutional investors. Comparatively, 0.2% of Grupo Aval Acciones y Valores shares are owned by institutional investors. 3.0% of Provident Financial Services shares are owned by company 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.
Profitability
This table compares Provident Financial Services and Grupo Aval Acciones y Valores’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Provident Financial Services | 22.15% | 11.00% | 1.24% |
| Grupo Aval Acciones y Valores | 5.08% | 6.06% | 0.60% |
Valuation and Earnings
This table compares Provident Financial Services and Grupo Aval Acciones y Valores”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Provident Financial Services | $1.38 billion | 2.18 | $291.16 million | $2.40 | 9.63 |
| Grupo Aval Acciones y Valores | $6.76 billion | 0.83 | $344.37 million | $0.40 | 11.83 |
Grupo Aval Acciones y Valores has higher revenue and earnings than Provident Financial Services. Provident Financial Services is trading at a lower price-to-earnings ratio than Grupo Aval Acciones y Valores, indicating that it is currently the more affordable of the two stocks.
Summary
Provident Financial Services beats Grupo Aval Acciones y Valores on 13 of the 17 factors compared between the two stocks.
About Provident Financial Services
Provident Financial Services, Inc. operates as the bank holding company for Provident Bank that provides various banking products and services to individuals, families, and businesses in the United States. Its deposit products include savings, checking, interest-bearing checking, money market deposit, and certificate of deposit accounts, as well as IRA products. The company's loan portfolio comprises commercial real estate loans that are secured by properties, such as multi-family apartment buildings, office buildings, retail and industrial properties, and office buildings; commercial business loans; fixed-rate and adjustable-rate mortgage loans collateralized by one- to four-family residential real estate properties; commercial construction loans; and consumer loans consisting of home equity loans, home equity lines of credit, personal loans and unsecured lines of credit, and auto and recreational vehicle loans. It also offers cash management, remote deposit capture, payroll origination, escrow account management, and online and mobile banking services; and business credit cards. In addition, the company provides wealth management services comprising investment management, trust and estate administration, financial planning, and tax compliance and planning. Further, it sells insurance and investment products, including annuities; operates as a real estate investment trust for acquiring mortgage loans and other real estate related assets; and manages and sells real estate properties acquired through foreclosure. The company was founded in 1839 and is headquartered in Jersey City, New Jersey.
About Grupo Aval Acciones y Valores
Grupo Aval Acciones y Valores S.A. provides a range of financial services and products to public and private sector customers in Colombia and Central America. It offers traditional deposit services and products, including checking accounts, savings accounts, time deposits, and other deposits. The company also provides commercial loans comprising general purpose loans, working capital loans, leases, loans funded by development banks, corporate credit cards, and overdraft loans; consumer loans, such as payroll loans, personal loans, automobile and other vehicle loans, credit cards, overdrafts, leases, and general purpose loans; and microcredit and mortgage loans. In addition, the company offers pension and severance fund management services; investment banking, including services relating to capital markets, mergers and acquisitions, and project finance transactions; mobile and online banking services; and bancassurance, insurance, trust, bonded warehousing and brokerage transactions, real estate escrow services, merchandise and document storage and deposit, customs agency, cargo management, surety bond and merchandise distribution services, and payment and collection services. Further, it is involved in equity investments in various sectors, including infrastructure, energy and gas, agribusiness, and hospitality; and treasury operations. The company was incorporated in 1994 and is headquartered in Bogotá, Colombia. Grupo Aval Acciones y Valores S.A.
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