Parke Bancorp (PKBK) vs. Its Peers Critical Review

Parke Bancorp (NASDAQ:PKBK) is one of 920 public companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Parke Bancorp to similar businesses based on the strength of its risk, dividends, profitability, analyst recommendations, earnings, valuation and institutional ownership.

Risk and Volatility

Parke Bancorp has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Parke Bancorp’s competitors have a beta of 0.67, meaning that their average stock price is 33% less volatile than the S&P 500.

Insider & Institutional Ownership

49.7% of Parke Bancorp shares are held by institutional investors. Comparatively, 47.7% of shares of all “Banks” companies are held by institutional investors. 13.0% of Parke Bancorp shares are held by insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by 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.

Profitability

This table compares Parke Bancorp and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Parke Bancorp	N/A	N/A	N/A
Parke Bancorp Competitors	3.80%	5.40%	0.17%

Dividends

Parke Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. Parke Bancorp pays out 20.2% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 13.3% and pay out 29.3% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Parke Bancorp and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Parke Bancorp	0	0	1	0	3.00
Parke Bancorp Competitors	7444	30086	27632	1436	2.35

As a group, “Banks” companies have a potential upside of 15.45%. Given Parke Bancorp’s competitors higher possible upside, analysts plainly believe Parke Bancorp has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Parke Bancorp and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Parke Bancorp	$93.60 million	N/A	8.30
Parke Bancorp Competitors	$6.29 billion	$4.08 billion	18.94

Parke Bancorp’s competitors have higher revenue and earnings than Parke Bancorp. Parke Bancorp is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Parke Bancorp competitors beat Parke Bancorp on 9 of the 14 factors compared.

Parke Bancorp Company Profile

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.