Fox Chase Bancorp (NASDAQ: FXCB) and Stock Yards Bancorp (NASDAQ:SYBT) are both commercial banks companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.
Institutional and Insider Ownership
47.7% of Stock Yards Bancorp shares are owned by institutional investors. 6.2% of Stock Yards Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Fox Chase Bancorp and Stock Yards Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fox Chase Bancorp||24.42%||5.09%||0.80%|
|Stock Yards Bancorp||28.57%||13.51%||1.42%|
Earnings & Valuation
This table compares Fox Chase Bancorp and Stock Yards Bancorp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fox Chase Bancorp||N/A||N/A||N/A||$0.85||N/A|
|Stock Yards Bancorp||$145.71 million||5.87||$41.02 million||$1.90||19.84|
Stock Yards Bancorp has higher revenue and earnings than Fox Chase Bancorp. Fox Chase Bancorp is trading at a lower price-to-earnings ratio than Stock Yards Bancorp, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings for Fox Chase Bancorp and Stock Yards Bancorp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fox Chase Bancorp||0||0||0||0||N/A|
|Stock Yards Bancorp||0||1||0||0||2.00|
Stock Yards Bancorp has a consensus target price of $38.00, suggesting a potential upside of 0.80%.
Fox Chase Bancorp pays an annual dividend of $0.56 per share. Stock Yards Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 2.2%. Fox Chase Bancorp pays out 65.9% of its earnings in the form of a dividend. Stock Yards Bancorp pays out 44.2% 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. Stock Yards Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.
Stock Yards Bancorp beats Fox Chase Bancorp on 9 of the 10 factors compared between the two stocks.
About Fox Chase Bancorp
Fox Chase Bancorp, Inc. is the holding company of Fox Chase Bank (the Bank). The Bank’s business activities consist of the ownership of common stock of the Bank and making over two loans to the Fox Chase Bank Employee Stock Ownership Plan (the ESOP). The Bank operates as a community-oriented financial institution offering financial services to businesses and consumers in its market areas. The Bank’s loan portfolio consists of multi-family and commercial real estate loans, one- to four-family residential real estate loans, commercial and industrial loans, construction loans and consumer loans. It offers fixed-rate and adjustable-rate mortgage loans secured by multi-family and commercial real estate to individuals and small businesses. The Bank also maintains an investment portfolio. It maintains approximately two offices in Montgomery County, Pennsylvania, over one office in each of Philadelphia and Chester Counties, Pennsylvania, and over three offices in Bucks County, Pennsylvania.
About Stock Yards Bancorp
Stock Yards Bancorp, Inc. is the holding company for Stock Yards Bank & Trust Company (the Bank). The Bank is a state chartered bank. The Company operates through two segments: commercial banking, and wealth management and trust. The commercial banking segment provides a full range of loan and deposit products to individual consumers and businesses, plus origination of consumer mortgages and securities brokerage activity. The wealth management and trust segment provides investment management, trust and estate administration, and retirement plan services. The Bank provides commercial and personal banking services in the Louisville, Kentucky, Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets through 37 full service banking offices, as of December 31, 2016. The Bank also originates and sells single-family residential mortgages. Additionally, the Bank offers securities brokerage services via its branch network through an arrangement with a third party broker-dealer.
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