Head-To-Head Comparison: Provident Financial Services (NYSE:PFS) versus First Niles Financial (OTCMKTS:FNFI)

Provident Financial Services (NYSE:PFSGet Rating) and First Niles Financial (OTCMKTS:FNFIGet Rating) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.

Insider & Institutional Ownership

64.3% of Provident Financial Services shares are held by institutional investors. Comparatively, 0.3% of First Niles Financial shares are held by institutional investors. 4.3% of Provident Financial Services shares are held by company insiders. Comparatively, 23.4% of First Niles Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Provident Financial Services and First Niles Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Provident Financial Services 31.47% 10.16% 1.20%
First Niles Financial N/A N/A N/A

Dividends

Provident Financial Services pays an annual dividend of $0.96 per share and has a dividend yield of 4.3%. First Niles Financial pays an annual dividend of $0.24 per share and has a dividend yield of 2.6%. Provident Financial Services pays out 44.0% of its earnings in the form of a dividend. Provident Financial Services has raised its dividend for 1 consecutive years. Provident Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Provident Financial Services and First Niles Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Provident Financial Services 0 2 1 0 2.33
First Niles Financial 0 0 0 0 N/A

Provident Financial Services presently has a consensus price target of $25.33, suggesting a potential upside of 12.24%. Given Provident Financial Services’ higher probable upside, equities research analysts plainly believe Provident Financial Services is more favorable than First Niles Financial.

Volatility & Risk

Provident Financial Services has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, First Niles Financial has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Valuation & Earnings

This table compares Provident Financial Services and First Niles Financial’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 $489.15 million 3.47 $167.92 million $2.18 10.35
First Niles Financial N/A N/A N/A N/A N/A

Provident Financial Services has higher revenue and earnings than First Niles Financial.

Summary

Provident Financial Services beats First Niles Financial on 10 of the 12 factors compared between the two stocks.

About Provident Financial Services

(Get Rating)

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. The company's deposit products include savings, checking, interest-bearing checking, money market deposit, and certificate of deposit accounts, as well as IRA products. Its loan portfolio comprises commercial real estate loans that are secured by properties, such as multi-family apartment buildings, office buildings, and retail and industrial properties; 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, marine loans, personal loans and unsecured lines of credit, and auto and recreational vehicle loans. The company also offers cash management, remote deposit capture, payroll origination, escrow account management, and online and mobile banking services; and business credit cards. In addition, it provides wealth management services comprising investment management, trust and estate administration, financial planning, tax compliance and planning, and private banking. Further, the company 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. As of December 31, 2021, it operated 96 full-service branch offices in northern and central New Jersey, as well as in Pennsylvania and New York counties. The company was founded in 1839 and is headquartered in Jersey City, New Jersey.

About First Niles Financial

(Get Rating)

First Niles Financial, Inc. operates as the holding company for the Home Federal Savings and Loan Association of Niles that provides various banking products and services. The company offers personal and business checking and savings, money market deposit, statement savings, and christmas club accounts, as well as certificates of deposit. In addition, it offers various loans, including mortgage and consumer loans, and home equity line of credit; and commercial loans and commercial line of credit. Further, the company provides other services, which include e-banking and night depository services, debit and ATM cards, safe deposit boxes, direct and I.R.A. certificates of deposit products, and others. First Niles Financial, Inc. was founded in 1897 and is based in Niles, Ohio.

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