Park Sterling (NASDAQ: PSTB) and CoBiz Financial (NASDAQ:COBZ) are both small-cap banks – nec companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.
This is a summary of recent recommendations and price targets for Park Sterling and CoBiz Financial, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CoBiz Financial has a consensus price target of $20.50, suggesting a potential downside of 4.25%. Given CoBiz Financial’s stronger consensus rating and higher possible upside, analysts plainly believe CoBiz Financial is more favorable than Park Sterling.
Volatility & Risk
Park Sterling has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, CoBiz Financial has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.
Institutional & Insider Ownership
82.6% of Park Sterling shares are owned by institutional investors. Comparatively, 82.9% of CoBiz Financial shares are owned by institutional investors. 7.3% of Park Sterling shares are owned by insiders. Comparatively, 9.9% of CoBiz Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Park Sterling pays an annual dividend of $0.16 per share and has a dividend yield of 1.2%. CoBiz Financial pays an annual dividend of $0.22 per share and has a dividend yield of 1.0%. Park Sterling pays out 28.6% of its earnings in the form of a dividend. CoBiz Financial pays out 24.2% 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.
This table compares Park Sterling and CoBiz Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Park Sterling and CoBiz Financial’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Park Sterling||$140.91 million||4.86||$19.94 million||$0.56||22.98|
|CoBiz Financial||$161.94 million||5.58||$34.89 million||$0.91||23.53|
CoBiz Financial has higher revenue and earnings than Park Sterling. Park Sterling is trading at a lower price-to-earnings ratio than CoBiz Financial, indicating that it is currently the more affordable of the two stocks.
CoBiz Financial beats Park Sterling on 13 of the 16 factors compared between the two stocks.
Park Sterling Company Profile
Park Sterling Corporation is a holding company for Park Sterling Bank (the Bank). The Bank is a North Carolina-chartered commercial non-member bank. The Company provides banking services to small and medium-sized businesses, real estate owners, residential builders, institutions, professionals and consumers doing business or residing within its target markets. It provides a range of banking products, including personal, business and non-profit checking accounts, interest on lawyer trust accounts (IOLTA), individual retirement accounts, business and personal money market accounts, time deposits, overdraft protection, safe deposit boxes, and online and mobile banking. Its wealth management activities include investment management, private banking, personal trust and investment brokerage services. Its cash management activities include remote deposit capture, lockbox services, sweep accounts, purchasing cards, automated clearing house (ACH) and wire payments.
CoBiz Financial Company Profile
CoBiz Financial Inc. is a financial holding company. The Company provides a range of banking and related services through its subsidiaries, CoBiz Bank (Bank), CoBiz Insurance, Inc. and CoBiz IM, Inc. (CoBiz IM). The Company’s segments include Commercial Banking, Fee-Based Lines, and Corporate Support and Other. Its Commercial Banking segment consists of the operations of the Bank, a full-service business banking institution that offers commercial, real estate and private banking, as well as treasury management, interest-rate hedging and depository products. Its Fee-Based Lines segment consists of the operations of CoBiz Wealth, LLC and CoBiz Insurance, Inc. CoBiz Wealth, LLC provides investment management advisory services to individuals, families and businesses. CoBiz Insurance, Inc. offers property and casualty (P&C) and employee benefit group insurance (EB) broker agency to small to mid-sized employers, commercial enterprises and individual lines to their owners.
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