Regions Financial (NYSE:RF) and Bridge Bancorp (NASDAQ:BDGE) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Dividends

Regions Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.2%. Bridge Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 3.1%. Regions Financial pays out 56.0% of its earnings in the form of a dividend. Regions Financial has raised its dividend for 5 consecutive years. Regions Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Regions Financial has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Bridge Bancorp has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Regions Financial and Bridge Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Regions Financial 1 6 5 2 2.57
Bridge Bancorp 0 2 1 0 2.33

Regions Financial presently has a consensus price target of $18.91, indicating a potential upside of 9.68%. Bridge Bancorp has a consensus price target of $39.17, indicating a potential upside of 30.04%. Given Bridge Bancorp’s higher probable upside, analysts plainly believe Bridge Bancorp is more favorable than Regions Financial.

Valuation and Earnings

This table compares Regions Financial and Bridge Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Regions Financial $6.09 billion 3.12 $1.26 billion $1.00 17.24
Bridge Bancorp $167.95 million 3.55 $20.53 million N/A N/A

Regions Financial has higher revenue and earnings than Bridge Bancorp.

Profitability

This table compares Regions Financial and Bridge Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Regions Financial 26.39% 10.15% 1.21%
Bridge Bancorp 10.46% 8.90% 0.87%

Institutional and Insider Ownership

73.9% of Regions Financial shares are held by institutional investors. Comparatively, 57.2% of Bridge Bancorp shares are held by institutional investors. 0.8% of Regions Financial shares are held by company insiders. Comparatively, 13.8% of Bridge Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Regions Financial beats Bridge Bancorp on 13 of the 17 factors compared between the two stocks.

About Regions Financial

Regions Financial Corporation, together with its subsidiaries, provides banking and bank-related services to individual and corporate customers in the United States. Its Corporate Bank segment offers commercial banking services, such as commercial and industrial, commercial real estate, and investor real estate lending, as well as equipment lease financing services and corresponding deposits. This segment serves corporate, middle market, and commercial real estate developers and investors. The company's Consumer Bank segment provides consumer banking products and services related to residential first mortgages, home equity lines and loans, branch small business and indirect loans, consumer credit cards, and other consumer loans, as well as the corresponding deposit relationships. Its Wealth Management segment offers wealth management products and services, including credit related products, trust and investment management, asset management, retirement and savings solutions, estate planning, and personal and commercial insurance products to individuals, businesses, governmental institutions, and non-profit entities. The company also provides insurance coverage for various lines of personal and commercial insurance, such as property, vehicle, casualty, life, health, and accident insurance, as well as crop and life insurance; services related to employee benefits and wholesale insurance broking; and equipment financing products, as well as offers securities and advisory services. In addition, it offers securities brokerage, merger and acquisition advisory, trust, and other specialty financing services. As of February 8, 2018, the company operated 1,500 banking offices and 1,900 ATMs. Regions Financial Corporation was founded in 1971 and is headquartered in Birmingham, Alabama.

About Bridge Bancorp

Bridge Bancorp, Inc. operates as the bank holding company for the BNB Bank that provide commercial and consumer banking products and services to small businesses, and municipal and consumer relationships. It accepts time, savings, and demand deposits. The company offers commercial real estate, multi-family mortgage, residential mortgage, secured and unsecured commercial and consumer, home equity, and construction loans; and mortgage-backed securities, collateralized mortgage obligations, and other asset backed securities. In addition, it offers certificate of deposit account registry service and insured cash sweep programs; merchant credit and debit card processing, cash management, lockbox processing, online banking, and remote deposit capture services; automated teller machines, safe deposit boxes, and individual retirement accounts; and investment products and services through a third party broker dealer, as well as title insurance brokerage services. As of January 29, 2018, the company operated 44 retail branch locations serving Long Island and the greater New York metropolitan area; and 1 loan production office in Manhattan. Bridge Bancorp, Inc. was founded in 1910 and is headquartered in Bridgehampton, New York.

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