Financial review: Signature Bank (NASDAQ:SBNY) and Popular (NASDAQ:BPOP)
Signature Bank (NASDAQ: SBNY – Get an assessment) and popular (NASDAQ:BPOP – Get an assessment) are both finance companies, but which stock is superior? We’ll compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.
Analyst Notes
This is a breakdown of the current ratings and target prices for Signature Bank and Popular, as provided by MarketBeat.com.
| Sales Ratings | Hold odds | Buy reviews | Strong buy odds | Rating | |
| Signature Bank | 0 | 0 | 13 | 1 | 3.07 |
| Popular | 0 | 0 | 4 | 0 | 3.00 |
Signature Bank currently has a consensus price target of $347.31, suggesting a potential upside of 80.76%. Popular has a consensus price target of $112.00, suggesting a potential upside of 41.99%. Given Signature Bank’s higher consensus rating and possible higher upside, stock analysts clearly believe Signature Bank is more favorable than Popular.
Dividends
Signature Bank pays an annual dividend of $2.24 per share and has a dividend yield of 1.2%. Popular pays an annual dividend of $2.20 per share and has a dividend yield of 2.8%. Signature Bank pays 13.1% of its profits as a dividend. Popular pays 20.0% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Popular has increased its dividend for 4 consecutive years. Popular is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.
Volatility and risk
Signature Bank has a beta of 1.78, indicating its stock price is 78% more volatile than the S&P 500. In comparison, Popular has a beta of 0.96, indicating its stock price is 4% less volatile than the S&P 500.
Institutional and Insider Ownership
96.2% of Signature Bank shares are held by institutional investors. By comparison, 89.4% of Popular’s shares are held by institutional investors. 1.9% of Popular shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers, and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares the net margins, return on equity and return on assets of Signature Bank and Popular.
| Net margins | Return on equity | return on assets | |
| Signature Bank | 43.29% | 13.97% | 0.96% |
| Popular | 31.84% | 15.80% | 1.21% |
Benefits and evaluation
This table compares the gross revenue, earnings per share and valuation of Signature Bank and Popular.
| Gross revenue | Price/sales ratio | Net revenue | Earnings per share | Price/earnings ratio | |
| Signature Bank | $2.31 billion | 5.04 | $918.44 million | $17.09 | 11.24 |
| Popular | $2.76 billion | 2.18 | $934.89 million | $11.02 | 7.16 |
Popular has higher revenue and profit than Signature Bank. Popular trades at a lower price-to-earnings ratio than Signature Bank, indicating that it is currently the more affordable of the two stocks.
Summary
Signature Bank beats Popular on 11 of the 18 factors compared between the two stocks.
About Signature Bank (Get an assessment)
Signature Bank provides commercial banking products and services. It accepts various deposit products, including checking accounts, money market accounts, escrow deposit accounts, cash concentration accounts, certificates of deposit, and other cash management products. The Company offers various loan products including commercial and industrial loans, real estate loans and letters of credit. In addition, it offers asset management and investment products; and retirement products, such as individual retirement accounts and administrative services for retirement vehicles. In addition, the company provides wealth management services to its high net worth individual clients; and buys, sells, and assembles small business loans and administration pools. In addition, it offers individual and group insurance products, including health, life, disability and long-term care insurance products for businesses and individuals. As of December 31, 2021, the company operated 37 private client offices located in the New York metro area, Connecticut, California and North Carolina. Signature Bank was incorporated in 2000 and is headquartered in New York, New York.
About popular (Get an assessment)
Popular, Inc., through its subsidiaries, provides various retail, mortgage and commercial banking products and services in Puerto Rico, the United States and the British Virgin Islands. The company offers savings, NOW, money market and other interest-bearing current accounts; sight deposits not bearing interest; and certificates of deposit. It also offers commercial and industrial real estate, commercial multifamily, commercial and residential real estate loans; consumer loans, including personal loans, credit cards, auto loans, home equity lines of credit and other loans to individual borrowers; building loans; and leasing financing including car loans/leases. In addition, the Company provides investment banking, automotive and equipment leasing and financing, brokerage and insurance services; debit cards; and online banking. As of December 31, 2021, it operated 169 branches; and 616 ATMs in Puerto Rico, 23 ATMs in the Virgin Islands, and 91 ATMs in the continental United States. Popular, Inc. was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.
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