Peapack-Gladstone Financial Corporation (NASDAQ: PGC) and Green Bancorp (NASDAQ:GNBC) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for Peapack-Gladstone Financial Corporation and Green Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Peapack-Gladstone Financial Corporation 0 1 2 0 2.67
Green Bancorp 0 0 2 0 3.00

Peapack-Gladstone Financial Corporation currently has a consensus target price of $32.00, indicating a potential downside of 5.21%. Green Bancorp has a consensus target price of $18.00, indicating a potential downside of 22.75%. Given Peapack-Gladstone Financial Corporation’s higher probable upside, equities analysts plainly believe Peapack-Gladstone Financial Corporation is more favorable than Green Bancorp.

Volatility & Risk

Peapack-Gladstone Financial Corporation has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Green Bancorp has a beta of 2.2, indicating that its stock price is 120% more volatile than the S&P 500.

Valuation & Earnings

This table compares Peapack-Gladstone Financial Corporation and Green Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Peapack-Gladstone Financial Corporation $124.41 million 4.72 $30.80 million $1.77 19.07
Green Bancorp $105.91 million 8.15 $13.33 million $0.36 64.72

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

Profitability

This table compares Peapack-Gladstone Financial Corporation and Green Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Peapack-Gladstone Financial Corporation 19.54% 9.12% 0.77%
Green Bancorp 7.69% 3.14% 0.34%

Dividends

Peapack-Gladstone Financial Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Green Bancorp does not pay a dividend. Peapack-Gladstone Financial Corporation pays out 11.3% of its earnings in the form of a dividend.

Insider and Institutional Ownership

67.9% of Peapack-Gladstone Financial Corporation shares are held by institutional investors. Comparatively, 60.7% of Green Bancorp shares are held by institutional investors. 5.9% of Peapack-Gladstone Financial Corporation shares are held by company insiders. Comparatively, 16.7% of Green Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Peapack-Gladstone Financial Corporation beats Green Bancorp on 9 of the 15 factors compared between the two stocks.

Peapack-Gladstone Financial Corporation Company Profile

Peapack-Gladstone Financial Corporation is a bank holding company. The Company’s principal subsidiary is Peapack-Gladstone Bank (the Bank), which is a state chartered commercial bank. The Company operates through two segments: Banking and Private Wealth Management Division. The Banking segment includes commercial, commercial real estate, multifamily, residential and consumer lending activities; deposit generation; operation of automated teller machines (ATMs); telephone and Internet banking services; merchant credit card services, and customer support sales. The Private Wealth Management Division includes asset management services provided for individuals and institutions; personal trust services, including services as executor, trustee, administrator, custodian and guardian; corporate trust services, including services as trustee for pension and profit sharing plans, and other financial planning and advisory services.

Green Bancorp Company Profile

Green Bancorp, Inc. is a bank holding company. As of December 31, 2016, the Company’s subsidiary, Green Bank, N.A., a nationally chartered commercial bank, provided commercial and private banking services primarily to Texas based customers through 22 full service branches in the Houston and Dallas metropolitan statistical areas (MSAs) and other markets. The Company provides banking services to a range of customers. It offers a suite of online banking solutions, including access to account balances, online transfers, online bill payment and electronic delivery of customer statements, as well as extended drive through hours, automated teller machines (ATMs), Bank at Work and banking by telephone, mail and personal appointment. The Company also offers debit cards, night depository, direct deposit, cashier’s checks and letters of credit, as well as treasury management services, wire transfer services and automated clearing house (ACH) services.

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