Pinnacle Financial Partners (NASDAQ:PNFP) and Peoples Financial Services (NASDAQ:PFIS) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.
Valuation and Earnings
This table compares Pinnacle Financial Partners and Peoples Financial Services’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pinnacle Financial Partners||$1.15 billion||3.54||$359.44 million||$4.74||11.14|
|Peoples Financial Services||$98.32 million||3.27||$24.92 million||N/A||N/A|
This is a breakdown of current recommendations for Pinnacle Financial Partners and Peoples Financial Services, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pinnacle Financial Partners||0||3||2||0||2.40|
|Peoples Financial Services||0||0||0||0||N/A|
Pinnacle Financial Partners presently has a consensus target price of $61.20, indicating a potential upside of 15.89%. Given Pinnacle Financial Partners’ higher probable upside, analysts plainly believe Pinnacle Financial Partners is more favorable than Peoples Financial Services.
Risk and Volatility
Pinnacle Financial Partners has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Peoples Financial Services has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500.
This table compares Pinnacle Financial Partners and Peoples Financial Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pinnacle Financial Partners||30.46%||9.82%||1.55%|
|Peoples Financial Services||25.63%||9.45%||1.16%|
Institutional and Insider Ownership
79.9% of Pinnacle Financial Partners shares are held by institutional investors. Comparatively, 25.1% of Peoples Financial Services shares are held by institutional investors. 3.0% of Pinnacle Financial Partners shares are held by company insiders. Comparatively, 7.7% of Peoples Financial Services shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Pinnacle Financial Partners pays an annual dividend of $0.64 per share and has a dividend yield of 1.2%. Peoples Financial Services pays an annual dividend of $1.36 per share and has a dividend yield of 3.1%. Pinnacle Financial Partners pays out 13.5% of its earnings in the form of a dividend. Peoples Financial Services has raised its dividend for 2 consecutive years. Peoples Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Pinnacle Financial Partners beats Peoples Financial Services on 10 of the 15 factors compared between the two stocks.
Pinnacle Financial Partners Company Profile
Pinnacle Financial Partners, Inc. operates as a bank holding company for Pinnacle Bank that provides various banking products and services in the United States. The company accepts various deposits, including savings, checking, interest-bearing checking, money market, and certificate of deposit accounts. Its loan products include commercial loans, such as equipment and working capital loans; commercial real estate loans comprising investment properties and business loans secured by real estate; and loans to individuals consisting of secured and unsecured installment and term loans, lines of credit, residential first mortgage loans, and home equity loans and lines of credit. The company also offers various securities and other financial products; investment products; brokerage and investment advisory programs; and fiduciary and investment management services, such as personal trust, endowments, foundations, individual retirement accounts, pensions, and custody. In addition, it provides insurance products primarily in the property and casualty area; merger and acquisition advisory services; and private debt, equity and mezzanine, interest rate derivatives, and other middle-market advisory services. Further, the company offers treasury management, telephone and online banking, mobile banking, debit and credit cards, direct and remote deposit, automated teller machine, and cash management services. It serves individuals, small-to medium-sized businesses, and professional entities. As of December 31, 2018, the company operates 114 offices, including 47 in Tennessee, 38 in North Carolina, 21 in South Carolina, and 8 in Virginia. Pinnacle Financial Partners, Inc. was founded in 2000 and is headquartered in Nashville, Tennessee.
Peoples Financial Services Company Profile
Peoples Financial Services Corp. operates as the bank holding company for Peoples Security Bank and Trust Company that provides financial services. The company accepts money market, NOW, savings, individual retirement, demand deposit, and certificates of deposit accounts. Its loan products include residential real estate, automobile, manufactured housing, personal, student, 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. The company also offers 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. In addition, it provides investment portfolio management, estate and business succession planning, annuities, insurance, retirement plan, and tax planning, as well as education funding strategies; and securities and brokerage, and investor services. Further, 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. Additionally, it provides various other services, including remote deposit capture; automatic clearing house transactions; cash management services; automated teller machines; point of sale transactions; safe deposit boxes; night depository services; direct deposit; and official check services. The company serves business, non-profit, governmental, municipal agency, and professional customers, as well as retail customers through 27 full-service community banking offices located in Pennsylvania; and Broome County of New York. Peoples Financial Services Corp. was founded in 1905 and is headquartered in Scranton, Pennsylvania.
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