Fulton Financial Corp (NASDAQ: FULT) and Peapack-Gladstone Financial Corporation (NASDAQ:PGC) are both financials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Volatility & Risk

Fulton Financial Corp has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Peapack-Gladstone Financial Corporation has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Insider and Institutional Ownership

63.0% of Fulton Financial Corp shares are owned by institutional investors. Comparatively, 67.8% of Peapack-Gladstone Financial Corporation shares are owned by institutional investors. 0.7% of Fulton Financial Corp shares are owned by insiders. Comparatively, 5.9% of Peapack-Gladstone Financial Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Fulton Financial Corp and Peapack-Gladstone Financial Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fulton Financial Corp 1 5 0 0 1.83
Peapack-Gladstone Financial Corporation 0 1 2 0 2.67

Fulton Financial Corp presently has a consensus price target of $17.90, indicating a potential downside of 6.77%. Peapack-Gladstone Financial Corporation has a consensus price target of $32.00, indicating a potential downside of 8.07%. Given Fulton Financial Corp’s higher possible upside, equities research analysts clearly believe Fulton Financial Corp is more favorable than Peapack-Gladstone Financial Corporation.

Dividends

Fulton Financial Corp pays an annual dividend of $0.44 per share and has a dividend yield of 2.3%. Peapack-Gladstone Financial Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Fulton Financial Corp pays out 44.4% of its earnings in the form of a dividend. Peapack-Gladstone Financial Corporation pays out 11.3% 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.

Valuation & Earnings

This table compares Fulton Financial Corp and Peapack-Gladstone Financial Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fulton Financial Corp $713.65 million 4.71 $173.19 million $0.99 19.39
Peapack-Gladstone Financial Corporation $124.41 million 4.87 $30.80 million $1.77 19.67

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

Profitability

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

Net Margins Return on Equity Return on Assets
Fulton Financial Corp 23.44% 8.39% 0.94%
Peapack-Gladstone Financial Corporation 19.54% 9.12% 0.77%

Summary

Peapack-Gladstone Financial Corporation beats Fulton Financial Corp on 9 of the 16 factors compared between the two stocks.

Fulton Financial Corp Company Profile

Fulton Financial Corporation is a financial holding company. The Company is the bank holding company of Fulton Bank N.A. (the Bank). As of December 31, 2016, the Company’s six subsidiary banks were located primarily in suburban or semi-rural geographic markets throughout a five-state region (Pennsylvania, Delaware, Maryland, New Jersey and Virginia). Each of the Company’s subsidiary banks offers a range of consumer and commercial banking products and services in its local market area. Personal banking services include various checking account and savings deposit products, certificates of deposit and individual retirement accounts. The subsidiary banks offer a range of consumer lending products to creditworthy customers in their market areas. Commercial banking services are provided to small and medium sized businesses. It also offers investment management, trust, brokerage, insurance and investment advisory services to consumer and commercial banking customers in its market areas.

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.

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