Investar (NASDAQ:ISTR) and Pathfinder Bancorp (NASDAQ:PBHC) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.
Volatility and Risk
Investar has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500. Comparatively, Pathfinder Bancorp has a beta of -0.45, suggesting that its share price is 145% less volatile than the S&P 500.
Earnings and Valuation
This table compares Investar and Pathfinder Bancorp’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Investar||$78.21 million||2.93||$13.61 million||$1.64||14.06|
|Pathfinder Bancorp||$38.84 million||1.64||$4.03 million||N/A||N/A|
Investar has higher revenue and earnings than Pathfinder Bancorp.
This table compares Investar and Pathfinder Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Investar and Pathfinder Bancorp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Investar presently has a consensus price target of $29.00, indicating a potential upside of 25.76%. Given Investar’s higher probable upside, research analysts plainly believe Investar is more favorable than Pathfinder Bancorp.
Investar pays an annual dividend of $0.22 per share and has a dividend yield of 1.0%. Pathfinder Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.8%. Investar pays out 13.4% of its earnings in the form of a dividend. Investar has raised its dividend for 3 consecutive years and Pathfinder Bancorp has raised its dividend for 3 consecutive years.
Insider and Institutional Ownership
53.9% of Investar shares are owned by institutional investors. Comparatively, 18.7% of Pathfinder Bancorp shares are owned by institutional investors. 9.6% of Investar shares are owned by insiders. Comparatively, 20.0% of Pathfinder Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Investar beats Pathfinder Bancorp on 10 of the 14 factors compared between the two stocks.
Investar Holding Corporation operates as the bank holding company for Investar Bank that provides a range of commercial banking products for individuals and small to medium-sized businesses in South Louisiana. The company offers various deposit products and services, such as savings, checking, money market, and individual retirement accounts, as well as various certificates of deposit; debit cards; and mobile banking services. It also provides commercial real estate loans; loans for the construction of commercial projects, and single family residential and multifamily properties; commercial and industrial loans, such as working capital lines of credit and equipment loans; consumer loans comprising secured and unsecured installment and term loans, second mortgages, home equity loans and lines of credit, and auto loans, as well as loans for personal, family, and household purposes; and one-to-four family residential real estate loans consisting of second and other second mortgage loans. In addition, the company offers cash management products, including remote deposit capture, electronic statements, positive pay, ACH origination and wire transfer, investment sweep accounts, and business Internet banking services. Further, it provides various other banking services, such as cashiers' checks, direct deposit of payroll and social security checks, night depository, bank-by-mail, automated teller machine, and merchant card services. The company operates through a network of 24 full service branches. Investar Holding Corporation was founded in 2006 and is headquartered in Baton Rouge, Louisiana.
About Pathfinder Bancorp
Pathfinder Bancorp, Inc. operates as a holding company for Pathfinder Bank that provides various banking and financial products and services primarily in Oswego and Onondaga counties, New York. The company accepts various deposits, including checking, savings, and money market deposit accounts, as well as certificates of deposit, and demand and time deposits. Its loan portfolio comprises commercial real estate loans; commercial loans; residential real estate and construction loans; tax-exempt loans; home equity loans and junior liens; municipal loans; 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. As of April 4, 2018, it operated nine full service offices. The company also operates one loan production office in Oneida County. Pathfinder Bancorp, Inc. was founded in 1859 and is headquartered in Oswego, New York.
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