Analyzing Credicorp (NYSE:BAP) & Patriot National Bancorp (NASDAQ:PNBK)

Credicorp (NYSE:BAP) and Patriot National Bancorp (NASDAQ:PNBK) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Dividends

Credicorp pays an annual dividend of $14.47 per share and has a dividend yield of 3.7%. Patriot National Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 4.7%. Credicorp pays out 53.6% of its earnings in the form of a dividend. Patriot National Bancorp pays out -57.1% 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. Credicorp has raised its dividend for 3 consecutive years. Patriot National Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Credicorp and Patriot National Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Credicorp	25.04%	20.52%	2.87%
Patriot National Bancorp	-9.76%	-7.09%	-0.58%

Valuation and Earnings

This table compares Credicorp and Patriot National Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Credicorp	$25.62 billion	1.43	$1.94 billion	$26.99	14.39
Patriot National Bancorp	$38.89 million	2.58	-$12.71 million	($0.07)	-12.07

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

Analyst Ratings

This is a summary of current recommendations for Credicorp and Patriot National Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Credicorp	0	2	5	0	2.71
Patriot National Bancorp	1	0	0	0	1.00

Credicorp presently has a consensus target price of $431.80, suggesting a potential upside of 11.17%. Given Credicorp’s stronger consensus rating and higher possible upside, analysts plainly believe Credicorp is more favorable than Patriot National Bancorp.

Risk & Volatility

Credicorp has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Patriot National Bancorp has a beta of -0.62, meaning that its stock price is 162% less volatile than the S&P 500.

Institutional and Insider Ownership

89.8% of Credicorp shares are owned by institutional investors. Comparatively, 39.3% of Patriot National Bancorp shares are owned by institutional investors. 15.9% of Credicorp shares are owned by company insiders. Comparatively, 12.8% of Patriot National Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Credicorp beats Patriot National Bancorp on 14 of the 17 factors compared between the two stocks.

About Credicorp

Credicorp Ltd. provides various financial, insurance, and health services and products primarily in Peru and internationally. It operates through Universal Banking, Insurance and Pensions, Microfinance, and Investment Banking and Equity Management segments. The Universal Banking segment grants various credits and financial instruments to individuals and legal entities; and various deposits and current accounts. The Insurance and Pensions segment issues insurance policies to cover losses in commercial property, transport, marine vessels, automobiles, life, health, and pensions; and management services for private pension funds. The Microfinance segment provides management of loans, deposits, and current accounts for small and microenterprises. The Investment Banking and Equity Management segment is involved in provision of brokerage and investment management services for corporations, institutional investors, governments, and foundations; structuring and placement of issues in the primary market; execution and negotiation of transactions in the secondary market; and structuring of securitization processes for corporate customers and manages mutual funds. The company was founded in 1889 and is headquartered in Lima, Peru.

About Patriot National Bancorp

Patriot National Bancorp, Inc. operates as the holding company for Patriot Bank, N.A. that provides community banking services to individuals, small and medium-sized businesses, and professionals. The company accepts consumer and commercial deposit accounts, such as checking, interest-bearing negotiable order of withdrawal, money market, time certificates of deposit, savings, prepaid deposit, on-line national money market, individual retirement accounts, and health savings accounts, as well as certificate of deposit account registry service. Its loan portfolio comprises commercial real estate, commercial business, small business administration, construction, purchased residential real estate, and various consumer loans. The company also offers automated clearing house transfers, lockbox, internet banking, bill payment, remote deposit capture, debit card, money order, traveler's check, and automatic teller machine services. Patriot National Bancorp, Inc. was founded in 1994 and is headquartered in Stamford, Connecticut.