Analyzing Boston Private Financial (BPFH) and Peoples Utah Bancorp (PUB)

Boston Private Financial (NASDAQ: PUB) and Peoples Utah Bancorp (NASDAQ:PUB) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

92.7% of Boston Private Financial shares are owned by institutional investors. Comparatively, 38.7% of Peoples Utah Bancorp shares are owned by institutional investors. 2.1% of Boston Private Financial shares are owned by company insiders. Comparatively, 18.3% of Peoples Utah Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Boston Private Financial pays an annual dividend of $0.48 per share and has a dividend yield of 3.4%. Peoples Utah Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 1.2%. Boston Private Financial pays out 54.5% of its earnings in the form of a dividend. Peoples Utah Bancorp pays out 28.8% 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. Boston Private Financial has raised its dividend for 5 consecutive years and Peoples Utah Bancorp has raised its dividend for 2 consecutive years. Boston Private Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Boston Private Financial and Peoples Utah Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boston Private Financial 0 4 0 0 2.00
Peoples Utah Bancorp 0 1 0 0 2.00

Boston Private Financial presently has a consensus target price of $16.25, indicating a potential upside of 16.07%. Peoples Utah Bancorp has a consensus target price of $35.00, indicating a potential downside of 1.27%. Given Boston Private Financial’s higher possible upside, analysts plainly believe Boston Private Financial is more favorable than Peoples Utah Bancorp.

Earnings & Valuation

This table compares Boston Private Financial and Peoples Utah Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Boston Private Financial $412.66 million 2.87 $40.59 million $0.88 15.91
Peoples Utah Bancorp $100.54 million 6.60 $19.84 million $1.53 23.17

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

Profitability

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

Net Margins Return on Equity Return on Assets
Boston Private Financial 6.97% 10.48% 0.93%
Peoples Utah Bancorp 22.22% 13.24% 1.67%

Risk and Volatility

Boston Private Financial has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Peoples Utah Bancorp has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Summary

Peoples Utah Bancorp beats Boston Private Financial on 8 of the 15 factors compared between the two stocks.

About Boston Private Financial

Boston Private Financial Holdings, Inc. operates as the bank holding company for Boston Private Bank & Trust Company that provides a range of banking services in the United States. The company operates through four segments: Private Banking, Wealth Management and Trust, Investment Management, and Wealth Advisory. The Private Banking segment offers private banking services to high net worth individuals, privately-owned businesses and partnerships, and nonprofit organizations; and financing services for affordable housing, first-time homebuyers, economic development, social services, community revitalization, and small businesses. It provides various deposit products. This segment also offers loans to individuals, such as residential mortgage loans, mortgage loans on investment or vacation properties, unsecured and secured personal lines of credits, home equity loans, and overdraft protection; and loans to businesses consisting of commercial and mortgage loans, revolving lines of credit, working capital loans, equipment financing, community lending programs, and construction and land loans. The Wealth Management and Trust segment provides wealth management solutions, including customized investment, wealth planning, trust, and family office services to high net worth individuals and families. The Investment Management segment offers services for pension funds, endowments, trusts, foundations and select institutions, mutual funds, and high net worth individuals and their families. The Wealth Advisory segment provides financial, estate and insurance, charitable, and intergenerational gifting and succession planning, as well as tax planning and preparation services. As of January 2, 2018, the company had offices in Boston, New York, Los Angeles, San Francisco, San Jose, Florida, and Wisconsin. Boston Private Financial Holdings, Inc. was incorporated in 1987 and is headquartered in Boston, Massachusetts.

About Peoples Utah Bancorp

People's Utah Bancorp operates as the bank holding company for People's Intermountain Bank that provides retail and commercial banking products and services. The company accepts various deposits, such as checking, rewards checking, savings, and money market deposit accounts, as well as individual retirement accounts and certificates of deposit. Its loan products include commercial and residential real estate lending comprising acquisition and development loans, construction loans, and mortgage financing; commercial and industrial loans, as well as leasing; consumer loans consisting of home equity loans, home improvement loans, automobile loans, debt consolidation loans, and general consumer lending; and SBA loans. The company also offers credit and debit cards; investment securities, such as U.S. Agency issues, mortgage-backed securities, and municipal bonds; and mobile and Internet banking, automatic teller machine, treasury management, remote deposit capture, bill pay, cashier's checks, money orders, and safe deposit services. It serves real estate developers and contractors, small to medium sized businesses, individuals, and professionals and professional firms through 25 retail branches located in Utah and southern Idaho. People's Utah Bancorp was founded in 1905 and is headquartered in American Fork, Utah.

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