Pacific Premier Bancorp (NASDAQ:PPBI) and HopFed Bancorp (NASDAQ:HFBC) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Pacific Premier Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. HopFed Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 4.7%. Pacific Premier Bancorp pays out 35.1% of its earnings in the form of a dividend. HopFed Bancorp has increased its dividend for 2 consecutive years. HopFed Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Pacific Premier Bancorp has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, HopFed Bancorp has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for Pacific Premier Bancorp and HopFed Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pacific Premier Bancorp||0||2||1||0||2.33|
Pacific Premier Bancorp currently has a consensus target price of $35.00, indicating a potential upside of 14.30%. Given Pacific Premier Bancorp’s higher probable upside, equities analysts clearly believe Pacific Premier Bancorp is more favorable than HopFed Bancorp.
Valuation and Earnings
This table compares Pacific Premier Bancorp and HopFed Bancorp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pacific Premier Bancorp||$479.45 million||4.00||$123.34 million||$2.51||12.20|
|HopFed Bancorp||$44.55 million||2.91||$5.67 million||N/A||N/A|
Pacific Premier Bancorp has higher revenue and earnings than HopFed Bancorp.
Insider and Institutional Ownership
82.6% of Pacific Premier Bancorp shares are held by institutional investors. Comparatively, 50.4% of HopFed Bancorp shares are held by institutional investors. 3.7% of Pacific Premier Bancorp shares are held by company insiders. Comparatively, 4.1% of HopFed Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Pacific Premier Bancorp and HopFed Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pacific Premier Bancorp||25.82%||8.24%||1.39%|
Pacific Premier Bancorp beats HopFed Bancorp on 10 of the 15 factors compared between the two stocks.
Pacific Premier Bancorp Company Profile
Pacific Premier Bancorp, Inc. operates as the bank holding company for Pacific Premier Bank that provides banking services to businesses, professionals, real estate investors, and non-profit organizations. The company accepts deposit products, such as checking, money market, and savings accounts; and certificates of deposit. Its loan products include commercial business loans, lines of credit, small business administration loans, commercial real estate loans, agribusiness loans, home equity lines of credit, construction loans, farmland, and consumer loans, as well as multi-family residential, one-to-four family real estate, commercial and industrial, and franchise lending; and credit facilities to Homeowners' Associations (HOA) and HOA management companies. The company also offers cash management, electronic banking, and online bill payment services. It operates 44 full-service depository branches in the counties of Orange, Los Angeles, Riverside, San Bernardino, San Diego, San Luis Obispo, and Santa Barbara, California; Pima and Maricopa Counties, Arizona; Clark County, Nevada; and Clark County, Washington. Pacific Premier Bancorp, Inc. was founded in 1983 and is headquartered in Irvine, California.
HopFed Bancorp Company Profile
HopFed Bancorp, Inc. operates as the bank holding company for Heritage Bank USA, Inc. that provides various banking products and services. The company accepts various deposit products, including money market accounts, passbook savings accounts, individual retirement accounts, certificates of deposit, and time deposits, as well as non-interest bearing, savings, and interest bearing checking accounts. It also provides loans, such as one-to-four family first mortgages, home equity lines of credit, junior liens, multi-family loans, construction and land loans, non-residential real estate loans, and farm loans, as well as secured and unsecured consumer and commercial loans. In addition, the company owns a low income senior citizen housing facility that offers apartments for rent in Bowling Green, Kentucky. Further, it invests in the United States government agency securities, municipal and corporate bonds, collateralized mortgages obligations, and mortgage-backed securities. As of March 21, 2018, the company operated 18 offices in western Kentucky and middle Tennessee; Heritage Bank Wealth Management of Murray, Kentucky, Hopkinsville, Kentucky, Kingston Springs, Tennessee, and Clarksville, Tennessee; and Heritage Mortgage Services of Clarksville, Tennessee, as well as loan production offices in Nashville, Tennessee, and Brentwood, Tennessee. HopFed Bancorp, Inc. was founded in 1879 and is headquartered in Hopkinsville, Kentucky.
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