OFG Bancorp (NYSE:OFG) versus Eagle Bancorp (NASDAQ:EGBN) Head-To-Head Comparison

OFG Bancorp (NYSE:OFG) and Eagle Bancorp (NASDAQ:EGBN) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Institutional & Insider Ownership

92.7% of OFG Bancorp shares are held by institutional investors. Comparatively, 78.0% of Eagle Bancorp shares are held by institutional investors. 1.2% of OFG Bancorp shares are held by insiders. Comparatively, 3.4% of Eagle Bancorp shares are held by 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 OFG Bancorp and Eagle Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OFG Bancorp	23.45%	15.62%	1.74%
Eagle Bancorp	-18.65%	-10.03%	-1.10%

Analyst Ratings

This is a summary of recent ratings and price targets for OFG Bancorp and Eagle Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OFG Bancorp	0	3	2	1	2.67
Eagle Bancorp	1	2	0	1	2.25

OFG Bancorp presently has a consensus target price of $47.20, suggesting a potential downside of 3.74%. Eagle Bancorp has a consensus target price of $29.00, suggesting a potential downside of 0.43%. Given Eagle Bancorp’s higher possible upside, analysts clearly believe Eagle Bancorp is more favorable than OFG Bancorp.

Valuation and Earnings

This table compares OFG Bancorp and Eagle Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OFG Bancorp	$688.35 million	3.01	$205.10 million	$4.84	10.13
Eagle Bancorp	$634.26 million	1.40	-$138.05 million	($3.79)	-7.68

OFG Bancorp has higher revenue and earnings than Eagle Bancorp. Eagle Bancorp is trading at a lower price-to-earnings ratio than OFG Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

OFG Bancorp pays an annual dividend of $1.40 per share and has a dividend yield of 2.9%. Eagle Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.1%. OFG Bancorp pays out 28.9% of its earnings in the form of a dividend. Eagle Bancorp pays out -1.1% 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. OFG Bancorp has increased its dividend for 5 consecutive years. OFG Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

OFG Bancorp has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, Eagle Bancorp has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Summary

OFG Bancorp beats Eagle Bancorp on 13 of the 17 factors compared between the two stocks.

About OFG Bancorp

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, and individual retirement accounts; certificate of deposits, as well as time deposit products; commercial, consumer, auto leasing, and mortgage lending services; credit cards; cash management; financial planning and insurance services; and corporate and individual trust, and retirement services. In addition, it provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. Further, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; and various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments. Additionally, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company provides investment brokerage, transactional, international trade financing, residential mortgage, and consumer finance services. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.

About Eagle Bancorp

Eagle Bancorp, Inc. operates as the bank holding company for EagleBank that provides commercial and consumer banking services primarily in the United States. The company also offers various commercial and consumer lending products comprising commercial loans for working capital, equipment purchases, real estate lines of credit, and government contract financing; asset based lending and accounts receivable financing; construction and commercial real estate loans; business equipment financing; consumer home equity lines of credit, personal lines of credit, and term loans; consumer installment loans, such as auto and personal loans; personal credit cards; and residential mortgage loans. In addition, it provides online and mobile banking services; checking and saving accounts; and other deposit services, including cash management services, business sweep accounts, lock boxes, remote deposit captures, account reconciliation services, merchant card services, safety deposit boxes, and automated clearing house origination, as well as after-hours depositories and ATM services. Further, the company offers insurance products and services through a referral program; and treasury management services. The company serves sole proprietors, small and medium-sized businesses, partnerships, corporations, and non-profit organizations and associations, as well as investors. Eagle Bancorp, Inc. was incorporated in 1997 and is headquartered in Bethesda, Maryland.