Reviewing Provident Financial Services (NYSE:PFS) and Logansport Financial (OTCMKTS:LOGN)

Logansport Financial (OTCMKTS:LOGN – Get Rating) and Provident Financial Services (NYSE:PFS – Get Rating) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Dividends

Logansport Financial pays an annual dividend of $1.60 per share and has a dividend yield of 3.6%. Provident Financial Services pays an annual dividend of $0.96 per share and has a dividend yield of 4.4%. Logansport Financial pays out 32.0% of its earnings in the form of a dividend. Provident Financial Services pays out 44.9% 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. Provident Financial Services has raised its dividend for 1 consecutive years. Provident Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Logansport Financial and Provident Financial Services, as reported by MarketBeat.

Risk and Volatility

Logansport Financial has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, Provident Financial Services has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Profitability

This table compares Logansport Financial and Provident Financial Services’ net margins, return on equity and return on assets.

Earnings and Valuation

This table compares Logansport Financial and Provident Financial Services’ revenue, earnings per share and valuation.

Provident Financial Services has higher revenue and earnings than Logansport Financial. Logansport Financial is trading at a lower price-to-earnings ratio than Provident Financial Services, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

63.8% of Provident Financial Services shares are owned by institutional investors. 17.4% of Logansport Financial shares are owned by company insiders. Comparatively, 4.3% of Provident Financial Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Provident Financial Services beats Logansport Financial on 12 of the 15 factors compared between the two stocks.

About Logansport Financial (Get Rating)

Logansport Financial Corp. operates as the holding company for Logansport Savings Bank that provides various banking products and services to individuals and businesses in Cass County, Indiana. The company’s personal banking products and services include checking accounts, rite accounts, NOW accounts, savings accounts, health savings accounts, certificates of deposit, and individual retirement accounts; mortgage, home equity lines of credit, home improvement, construction, commercial buildings, farm, consumer, education, and car loans, as well as loans for single family and multi-family dwellings; and overdraft, and internet and mobile banking services. It also provides business and commercial checking accounts, commercial savings accounts/certificates of deposit, money market accounts and certificates, commercial sweep accounts, ACH debit/credit capabilities, electric federal tax payment systems, remote banking and merchant card services, wires, coin services, night deposit bags, and remote deposit banking services. In addition, the company offers revolving or seasonal lines of credit, term loans for equipment, commercial real estate mortgages for expansion or acquisition, commercial letters of credit, and guaranteed loans, as well as agricultural loans. Logansport Financial Corp. was founded in 1925 and is based in Logansport, Indiana.

About Provident Financial Services (Get Rating)

Provident Financial Services, Inc. operates as the bank holding company for Provident Bank that provides various banking products and services to individuals, families, and businesses in the United States. The company’s deposit products include savings, checking, interest-bearing checking, money market deposit, and certificate of deposit accounts, as well as IRA products. Its loan portfolio comprises commercial real estate loans that are secured by properties, such as multi-family apartment buildings, office buildings, and retail and industrial properties; commercial business loans; fixed-rate and adjustable-rate mortgage loans collateralized by one- to four-family residential real estate properties; commercial construction loans; and consumer loans consisting of home equity loans, home equity lines of credit, marine loans, personal loans and unsecured lines of credit, and auto and recreational vehicle loans. The company also offers cash management, remote deposit capture, payroll origination, escrow account management, and online and mobile banking services; and business credit cards. In addition, it provides wealth management services comprising investment management, trust and estate administration, financial planning, tax compliance and planning, and private banking. Further, the company sells insurance and investment products, including annuities; operates as a real estate investment trust for acquiring mortgage loans and other real estate related assets; and manages and sells real estate properties acquired through foreclosure. As of December 31, 2021, it operated 96 full-service branch offices in northern and central New Jersey, as well as in Pennsylvania and New York counties. The company was founded in 1839 and is headquartered in Jersey City, New Jersey.

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