Peoples Bancorp (NASDAQ: PEBO) and First Interstate Bancsystem (NASDAQ:FIBK) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.
This is a breakdown of recent ratings and recommmendations for Peoples Bancorp and First Interstate Bancsystem, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Interstate Bancsystem||0||1||3||0||2.75|
Insider and Institutional Ownership
63.5% of Peoples Bancorp shares are owned by institutional investors. Comparatively, 46.1% of First Interstate Bancsystem shares are owned by institutional investors. 3.0% of Peoples Bancorp shares are owned by insiders. Comparatively, 38.2% of First Interstate Bancsystem shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
Peoples Bancorp has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, First Interstate Bancsystem has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.
Peoples Bancorp pays an annual dividend of $1.04 per share and has a dividend yield of 2.9%. First Interstate Bancsystem pays an annual dividend of $1.12 per share and has a dividend yield of 2.7%. Peoples Bancorp pays out 49.5% of its earnings in the form of a dividend. First Interstate Bancsystem pays out 54.6% 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. Peoples Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Peoples Bancorp and First Interstate Bancsystem’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Peoples Bancorp||$179.18 million||3.73||$38.47 million||$2.10||17.32|
|First Interstate Bancsystem||$519.53 million||4.47||$106.52 million||$2.05||20.05|
First Interstate Bancsystem has higher revenue and earnings than Peoples Bancorp. Peoples Bancorp is trading at a lower price-to-earnings ratio than First Interstate Bancsystem, indicating that it is currently the more affordable of the two stocks.
This table compares Peoples Bancorp and First Interstate Bancsystem’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Interstate Bancsystem||20.50%||9.10%||1.05%|
First Interstate Bancsystem beats Peoples Bancorp on 10 of the 16 factors compared between the two stocks.
Peoples Bancorp Company Profile
Peoples Bancorp Inc. is a financial holding company. The Company operates principally through its subsidiary, Peoples Bank. Peoples Bank’s operating subsidiaries include Peoples Insurance Agency, LLC (Peoples Insurance) and two asset management companies, PBNA, L.L.C. and Peoples Tax Credit Equity, LLC. Peoples Investment Company has one subsidiary, Peoples Capital Corporation. The Company offers banking, insurance, investment and trust solutions. Its products and services include various demand deposit accounts, savings accounts, money market accounts and certificates of deposit; commercial, consumer and real estate mortgage loans (both commercial and residential) and lines of credit; debit and automated teller machine (ATM) cards; credit cards for individuals and businesses; merchant credit card transaction processing services; corporate and personal trust services; a range of life, health and property and casualty insurance products, and brokerage services.
First Interstate Bancsystem Company Profile
First Interstate BancSystem, Inc. is a financial and bank holding company. The Company, through its bank subsidiary First Interstate Bank (the Bank), delivers a range of banking products and services to individuals, businesses, municipalities and other entities. The Company also, through its subsidiary Bank of the Cascades, offers full-service community banking through 46 branches in Oregon, Idaho and Washington. The Company operates through community banking segment. Its community banking segment provides customers with commercial and consumer banking products and services in its market areas through community service activities. In addition to its primary emphasis on commercial and consumer banking services, the Company also offers trust, employee benefit, investment and insurance services through its bank subsidiary. As of December 31, 2016, it operated 80 banking offices, including detached drive-up facilities, in 46 communities located in Montana, Wyoming and South Dakota.
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