Analyzing Peoples Bancorp (NASDAQ:PEBO) and Bancorp (NASDAQ:TBBK)

Bancorp (NASDAQ:TBBK) and Peoples Bancorp (NASDAQ:PEBO) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bancorp	$879.70 million	2.20	$228.21 million	$5.67	8.54
Peoples Bancorp	$618.38 million	2.23	$106.78 million	$3.39	11.29

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

Institutional & Insider Ownership

96.2% of Bancorp shares are owned by institutional investors. Comparatively, 60.7% of Peoples Bancorp shares are owned by institutional investors. 6.0% of Bancorp shares are owned by company insiders. Comparatively, 3.3% of Peoples Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Bancorp and Peoples Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bancorp	1	2	5	0	2.50
Peoples Bancorp	0	2	3	1	2.83

Bancorp presently has a consensus target price of $62.25, suggesting a potential upside of 28.62%. Peoples Bancorp has a consensus target price of $42.00, suggesting a potential upside of 9.75%. Given Bancorp’s higher possible upside, equities research analysts plainly believe Bancorp is more favorable than Peoples Bancorp.

Volatility and Risk

Bancorp has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Peoples Bancorp has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500.

Profitability

This table compares Bancorp and Peoples Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bancorp	28.50%	34.29%	2.51%
Peoples Bancorp	19.76%	11.08%	1.41%

Summary

Bancorp beats Peoples Bancorp on 11 of the 15 factors compared between the two stocks.

About Bancorp

The Bancorp, Inc. is a financial holding company based in Wilmington, Delaware. Through its subsidiary, The Bancorp Bank, National Association, it provides banking and financial services primarily to businesses and other organizations rather than operating a traditional branch-focused consumer bank. The company’s services include payment and card programs, such as prepaid and debit card solutions, along with payment processing and banking services for fintech companies and other partners. Its lending activities include specialty financing for businesses and individuals.

About Peoples Bancorp

Peoples Bancorp Inc. is a financial holding company headquartered in Marietta, Ohio. Its principal subsidiary, Peoples Bank, provides commercial and consumer banking services to individuals, businesses and local organizations. The company offers deposit accounts, loans, payment services and other banking products, along with services such as wealth management, insurance and equipment financing. Its branches and service areas extend across Ohio, West Virginia, Kentucky and Virginia. Peoples traces its history to 1902, when it was established in Marietta.