Critical Survey: Parke Bancorp (PKBK) and The Competition

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets 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	7462	30180	27739	1456	2.35

As a group, “Banks” companies have a potential upside of 15.73%. Given Parke Bancorp’s competitors higher probable upside, analysts plainly believe Parke Bancorp has less favorable growth aspects than its competitors.

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	30.55%	14.13%	2.10%
Parke Bancorp Competitors	15.72%	9.53%	0.93%

Risk and Volatility

Parke Bancorp has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Parke Bancorp’s competitors have a beta of 0.61, indicating that their average share price is 39% less volatile than the S&P 500.

Earnings & Valuation

This table compares Parke Bancorp and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Parke Bancorp	$93.60 million	$37.78 million	8.41
Parke Bancorp Competitors	$222.02 billion	$2.41 billion	16.81

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.

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 9.4% and pay out 28.9% of their earnings in the form of a dividend.

Institutional & Insider Ownership

49.7% of Parke Bancorp shares are held by institutional investors. Comparatively, 47.8% 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Parke Bancorp beats its competitors on 8 of the 15 factors compared.

About Parke Bancorp

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.