Analyzing Pathfinder Bancorp (NASDAQ:PBHC) & Ameris Bancorp (NYSE:ABCB)

Ameris Bancorp (NYSE:ABCB) and Pathfinder Bancorp (NASDAQ:PBHC) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Dividends

Ameris Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 1.0%. Pathfinder Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.4%. Ameris Bancorp pays out 14.5% of its earnings in the form of a dividend. Pathfinder Bancorp pays out -190.5% 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. Pathfinder Bancorp has raised its dividend for 1 consecutive years. Pathfinder Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Ameris Bancorp has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Pathfinder Bancorp has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Ameris Bancorp and Pathfinder Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ameris Bancorp	0	4	4	0	2.50
Pathfinder Bancorp	0	1	0	0	2.00

Ameris Bancorp currently has a consensus target price of $90.67, indicating a potential upside of 16.13%. Given Ameris Bancorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Ameris Bancorp is more favorable than Pathfinder Bancorp.

Insider & Institutional Ownership

91.6% of Ameris Bancorp shares are owned by institutional investors. Comparatively, 26.7% of Pathfinder Bancorp shares are owned by institutional investors. 5.7% of Ameris Bancorp shares are owned by insiders. Comparatively, 15.7% of Pathfinder Bancorp shares are owned 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.

Valuation & Earnings

This table compares Ameris Bancorp and Pathfinder Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ameris Bancorp	$1.67 billion	3.15	$412.15 million	$5.53	14.12
Pathfinder Bancorp	$48.33 million	1.71	-$1.93 million	($0.21)	-80.12

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

Profitability

This table compares Ameris Bancorp and Pathfinder Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ameris Bancorp	21.98%	10.62%	1.55%
Pathfinder Bancorp	-1.70%	-1.08%	-0.09%

Summary

Ameris Bancorp beats Pathfinder Bancorp on 13 of the 17 factors compared between the two stocks.

About Ameris Bancorp

Ameris Bancorp operates as the bank holding company for Ameris Bank that provides range of banking services to retail and commercial customers. It operates through five segments: Banking Division, Retail Mortgage Division, Warehouse Lending Division, SBA Division, and Premium Finance Division. The company offers commercial and retail checking, regular interest-bearing savings, money market, individual retirement, and certificates of deposit accounts. It also provides commercial real estate, residential real estate mortgage, agricultural, and commercial and industrial loans; consumer loans, including motor vehicle, home improvement, and home equity loans, as well as loans secured by savings accounts and personal credit lines. In addition, the company originates, administers, and services commercial insurance premium loans, equipment finance loans, and small business administration loans. It operates full service domestic banking offices, and mortgage and loan production offices. The company was founded in 1971 and is headquartered in Atlanta, Georgia.

About Pathfinder Bancorp

Pathfinder Bancorp, Inc. operates as a bank holding company for Pathfinder Bank that provides various banking and financial products and services in New York. The company's deposit products include checking, savings, and money market deposit accounts; certificates of deposit; and demand and time deposits. Its loan portfolio comprises commercial real estate, commercial, residential real estate, construction, and tax-exempt loans; home equity loans and junior liens; 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. The company was founded in 1859 and is headquartered in Oswego, New York.