Pathfinder Bancorp (NASDAQ:PBHC) versus Pacific Premier Bancorp (NASDAQ:PPBI) Financial Comparison

Pathfinder Bancorp (NASDAQ:PBHC) and Pacific Premier Bancorp (NASDAQ:PPBI) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, risk, earnings and valuation.

Valuation and Earnings

This table compares Pathfinder Bancorp and Pacific Premier Bancorp’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pathfinder Bancorp	$72.85 million	0.98	$9.29 million	$1.42	10.68
Pacific Premier Bancorp	$714.07 million	3.33	$30.85 million	$0.13	189.94

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

Dividends

Pathfinder Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.6%. Pacific Premier Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 5.3%. Pathfinder Bancorp pays out 28.2% of its earnings in the form of a dividend. Pacific Premier Bancorp pays out 1,015.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pathfinder Bancorp has increased its dividend for 4 consecutive years.

Profitability

This table compares Pathfinder Bancorp and Pacific Premier Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pathfinder Bancorp	11.16%	7.41%	0.61%
Pacific Premier Bancorp	N/A	6.34%	0.96%

Institutional and Insider Ownership

26.7% of Pathfinder Bancorp shares are owned by institutional investors. Comparatively, 93.1% of Pacific Premier Bancorp shares are owned by institutional investors. 22.4% of Pathfinder Bancorp shares are owned by company insiders. Comparatively, 2.2% of Pacific Premier Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Pathfinder Bancorp and Pacific Premier Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pathfinder Bancorp	0	0	0	0	N/A
Pacific Premier Bancorp	0	3	3	0	2.50

Pacific Premier Bancorp has a consensus target price of $26.50, indicating a potential upside of 7.33%. Given Pacific Premier Bancorp’s higher possible upside, analysts plainly believe Pacific Premier Bancorp is more favorable than Pathfinder Bancorp.

Risk and Volatility

Pathfinder Bancorp has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, Pacific Premier Bancorp has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Summary

Pacific Premier Bancorp beats Pathfinder Bancorp on 10 of the 16 factors compared between the two stocks.

About Pathfinder Bancorp

Pathfinder Bancorp, Inc. operates as a bank holding company for Pathfinder Bank that provides various banking and financial products and services in New York. The company's deposit products include checking, savings, and money market deposit accounts; certificates of deposit; and demand and time deposits. Its loan portfolio comprises commercial real estate, commercial, residential real estate, construction, and tax-exempt loans; home equity loans and junior liens; and consumer loans comprising automobile, recreational vehicles, and unsecured personal loans, as well as unsecured lines of credit and loans secured by deposit accounts. The company is also involved in the property, casualty, and life insurance brokerage business. It primarily serves individuals, families, small to mid-size businesses, and municipalities. The company was founded in 1859 and is headquartered in Oswego, New York.

About Pacific Premier Bancorp

Pacific Premier Bancorp, Inc. operates as the bank holding company for Pacific Premier Bank that provides various banking products and services in the United States. The company accepts deposit products, which includes checking, money market, savings accounts, and certificates of deposit. Its loan portfolio includes commercial real estate owner and non-owner-occupied, multifamily, construction and land, franchise real estate secured, and small business administration (SBA); revolving lines of credit, term loans, seasonal loans, and loans secured by liquid collateral; one-to-four family and home equity lines of credit loans; and small balance personal unsecured loans and savings account secured loans. It also offers cash management, online and mobile banking, and treasury management services, as well as payment processing, remote capture, and automated clearing house payment capabilities. In addition, it operates as a custodian for alternative assets held in qualified self-directed IRA accounts, including investments in private equity, real estate, notes, cash, and other non-exchange traded assets; and provides real-property and non-real property escrow services. The company serves small and middle-market businesses, corporations, professionals, real estate investors, non-profit organizations, and consumers. The company was founded in 1983 and is headquartered in Irvine, California.