Peoples Financial Services (NASDAQ:PFIS – Get Free Report) and Intercorp Financial Services (NYSE:IFS – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.
Profitability
This table compares Peoples Financial Services and Intercorp Financial Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Peoples Financial Services | 20.66% | 17.27% | 1.70% |
| Intercorp Financial Services | 34.81% | 17.06% | 2.10% |
Volatility & Risk
Peoples Financial Services has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Intercorp Financial Services has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500.
Valuation & Earnings
This table compares Peoples Financial Services and Intercorp Financial Services”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Peoples Financial Services | $195.82 million | 3.60 | $59.19 million | $8.83 | 7.97 |
| Intercorp Financial Services | $1.67 billion | 3.15 | $542.25 million | $5.47 | 8.64 |
Intercorp Financial Services has higher revenue and earnings than Peoples Financial Services. Peoples Financial Services is trading at a lower price-to-earnings ratio than Intercorp Financial Services, indicating that it is currently the more affordable of the two stocks.
Dividends
Peoples Financial Services pays an annual dividend of $2.50 per share and has a dividend yield of 3.6%. Intercorp Financial Services pays an annual dividend of $1.71 per share and has a dividend yield of 3.6%. Peoples Financial Services pays out 28.3% of its earnings in the form of a dividend. Intercorp Financial Services pays out 31.3% 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. Peoples Financial Services has increased its dividend for 8 consecutive years and Intercorp Financial Services has increased its dividend for 1 consecutive years.
Analyst Recommendations
This is a breakdown of recent ratings for Peoples Financial Services and Intercorp Financial Services, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Peoples Financial Services | 0 | 3 | 1 | 0 | 2.25 |
| Intercorp Financial Services | 0 | 2 | 1 | 0 | 2.33 |
Peoples Financial Services presently has a consensus target price of $65.50, indicating a potential downside of 6.97%. Intercorp Financial Services has a consensus target price of $62.00, indicating a potential upside of 31.23%. Given Intercorp Financial Services’ stronger consensus rating and higher possible upside, analysts plainly believe Intercorp Financial Services is more favorable than Peoples Financial Services.
Insider & Institutional Ownership
31.7% of Peoples Financial Services shares are owned by institutional investors. 8.2% of Peoples Financial Services shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Intercorp Financial Services beats Peoples Financial Services on 9 of the 16 factors compared between the two stocks.
About Peoples Financial Services
Peoples Financial Services Corp. operates as the bank holding company for Peoples Security Bank and Trust Company that provides various commercial and retail banking services. The company accepts money market, negotiable order of withdrawal, savings, individual retirement, demand deposit, and certificates of deposit accounts. It also provides residential real estate, automobile, manufactured housing, personal, and home equity loans; and commercial real estate, working capital, construction, small business administration, and agricultural loans, as well as loans for equipment and other commercial needs, and mineral rights. In addition, the company offers fiduciary and investment services; investment management, IRA trustee, estate administration, living and life insurance trust, trustee under will, guardianship, custodial/IRA custodial, and corporate trust services, as well as pension and profit-sharing plans. Further, it provides wealth management products and services comprising investment portfolio management, estate and business succession planning, annuities, insurance, retirement plan, and tax planning, as well as education funding strategies; and securities, brokerage, and investor services. Additionally, the company offers small business checking and merchant money market accounts, online and telephone banking, business credit cards, merchant line of credit, and financial checkup services; and remote deposit capture, automatic clearing house transaction, cash management, automated teller machine, point of sale transaction, safe deposit box, night depository, direct deposit, and official check services. It serves business, non-profit, governmental, municipal agency, and professional customers, as well as retail customers. Peoples Financial Services Corp. was founded in 1905 and is headquartered in Scranton, Pennsylvania.
About Intercorp Financial Services
Intercorp Financial Services Inc., together with its subsidiaries, offers banking, insurance, wealth management, and payment services for retail and commercial clients in Peru. The company provides loans, credit facilities, deposits, and current accounts; life annuity products with single-premium payment and conventional life insurance products, as well as other retail insurance products; and brokerage and investment management services. It engages in the development, management, operation, and processing of credit and debit cards; facilitation of payments and services through commercial stores; and installation and maintenance of infrastructure for transactions through electronic commerce modality and networks of payment methods processors. The company was incorporated in 1897 and is based in Lima, Peru. Intercorp Financial Services Inc. operates as a subsidiary of Intercorp Perú Ltd.
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