Head-To-Head Comparison: FirstRand (OTCMKTS:FANDF) versus Univest Corporation of Pennsylvania (NASDAQ:UVSP)

Univest Corporation of Pennsylvania (NASDAQ:UVSP) and FirstRand (OTCMKTS:FANDF) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Valuation & Earnings

This table compares Univest Corporation of Pennsylvania and FirstRand”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Univest Corporation of Pennsylvania	$518.35 million	2.37	$90.76 million	$3.46	12.86
FirstRand	N/A	N/A	N/A	$2.94	1.90

Univest Corporation of Pennsylvania has higher revenue and earnings than FirstRand. FirstRand is trading at a lower price-to-earnings ratio than Univest Corporation of Pennsylvania, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Univest Corporation of Pennsylvania and FirstRand’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Univest Corporation of Pennsylvania	18.86%	10.41%	1.18%
FirstRand	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings for Univest Corporation of Pennsylvania and FirstRand, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Univest Corporation of Pennsylvania	0	2	0	2	3.00
FirstRand	0	0	2	0	3.00

Univest Corporation of Pennsylvania presently has a consensus price target of $40.50, indicating a potential downside of 8.99%. Given Univest Corporation of Pennsylvania’s higher probable upside, analysts plainly believe Univest Corporation of Pennsylvania is more favorable than FirstRand.

Insider & Institutional Ownership

75.1% of Univest Corporation of Pennsylvania shares are held by institutional investors. 1.8% of Univest Corporation of Pennsylvania 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.

Dividends

Univest Corporation of Pennsylvania pays an annual dividend of $0.92 per share and has a dividend yield of 2.1%. FirstRand pays an annual dividend of $1.17 per share and has a dividend yield of 20.9%. Univest Corporation of Pennsylvania pays out 26.6% of its earnings in the form of a dividend. FirstRand pays out 39.7% 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. Univest Corporation of Pennsylvania has raised its dividend for 1 consecutive years.

Summary

Univest Corporation of Pennsylvania beats FirstRand on 12 of the 14 factors compared between the two stocks.

About Univest Corporation of Pennsylvania

Univest Financial Corporation operates as the bank holding company for Univest Bank and Trust Co. that provides banking products and services primarily in the United States. It operates through three segments: Banking, Wealth Management, and Insurance. The Banking segment offers a range of banking services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking, and equipment lease financing services for individuals, businesses, municipalities, and nonprofit organizations. Its Wealth Management segment provides investment advisory, financial planning, and trust and brokerage services for private families and individuals, municipal pension plans, retirement plans, and trusts and guardianships. The Insurance segment offers commercial property and casualty insurance, employee benefits solutions, personal insurance lines, and human resources consulting services. The company was formerly known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. The company was founded in 1876 and is headquartered in Souderton, Pennsylvania.

About FirstRand

FirstRand Limited, together with its subsidiaries, provides transactional, lending, investment, and insurance products and services in South Africa, rest of Africa, the United Kingdom, Europe, Asia, the United States, and Australia. The company offers deposit and savings products; personal loans; and asset and invoice finance, as well as SME commercial, residential, and buy-to-let mortgages. It also provides life and short-term insurance products; and vehicle finance, instalment credit and fleet management, and corporate and investment banking services. In addition, the company offers asset management, as well as vehicle-related insurance services. It serves retail and public sector customers, SMEs, business, agricultural, and medium corporates. The company was incorporated in 1966 and is based in Sandton, South Africa.