Popular (NASDAQ:BPOP – Get Free Report) and Bank7 (NASDAQ:BSVN – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.
Valuation & Earnings
This table compares Popular and Bank7″s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Popular | $4.44 billion | 2.00 | $833.16 million | $12.32 | 11.10 |
| Bank7 | $137.26 million | 2.85 | $43.07 million | $4.49 | 9.15 |
Volatility & Risk
Popular has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Bank7 has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for Popular and Bank7, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Popular | 0 | 1 | 10 | 1 | 3.00 |
| Bank7 | 0 | 1 | 3 | 0 | 2.75 |
Popular currently has a consensus target price of $159.09, suggesting a potential upside of 16.29%. Bank7 has a consensus target price of $54.00, suggesting a potential upside of 31.48%. Given Bank7’s higher possible upside, analysts clearly believe Bank7 is more favorable than Popular.
Profitability
This table compares Popular and Bank7’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Popular | 18.75% | 13.70% | 1.10% |
| Bank7 | 31.38% | 18.21% | 2.30% |
Insider & Institutional Ownership
87.3% of Popular shares are owned by institutional investors. Comparatively, 23.5% of Bank7 shares are owned by institutional investors. 2.1% of Popular shares are owned by company insiders. Comparatively, 25.8% of Bank7 shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Dividends
Popular pays an annual dividend of $3.00 per share and has a dividend yield of 2.2%. Bank7 pays an annual dividend of $1.08 per share and has a dividend yield of 2.6%. Popular pays out 24.4% of its earnings in the form of a dividend. Bank7 pays out 24.1% 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. Popular has increased its dividend for 6 consecutive years and Bank7 has increased its dividend for 5 consecutive years. Bank7 is clearly the better dividend stock, given its higher yield and lower payout ratio.
About Popular
Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking products and services in Puerto Rico, the United States, and the British Virgin Islands. The company provides savings, NOW, money market, and other interest-bearing demand accounts; non-interest bearing demand deposits; and certificates of deposit. It also offers commercial and industrial, commercial multi-family, commercial real estate, and residential mortgage loans; consumer loans, including personal loans, credit cards, automobile loans, home equity lines of credit, and other loans to individual borrowers; construction loans; and lease financing comprising automobile loans/leases. In addition, the company provides investment banking, auto and equipment leasing and financing, broker-dealer, and insurance services; debit cards; and online banking services. Popular, Inc. was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.
About Bank7
Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers. It offers commercial deposit, commercial checking, money market, and other deposit accounts; and retail deposit services, such as certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and automated teller machine access. The company also provides commercial real estate, hospitality, energy, and commercial and industrial lending services; consumer lending services to individuals for personal and household purposes comprising residential real estate loans and mortgage banking services, personal lines of credit, loans for the purchase of automobiles, and other installment loans, as well as secured and unsecured term loans and home improvement loans. It operates through a network of full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas. The company was formerly known as Haines Financial Corp. Bank7 Corp. was founded in 1901 and is headquartered in Oklahoma City, Oklahoma.
Receive News & Ratings for Popular Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Popular and related companies with MarketBeat.com's FREE daily email newsletter.
