Popular (NASDAQ:BPOP – Get Free Report) is one of 920 public companies in the “Banks” industry, but how does it contrast to its rivals? We will compare Popular to similar businesses based on the strength of its valuation, dividends, risk, profitability, institutional ownership, analyst recommendations and earnings.
Volatility & Risk
Popular has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Popular’s rivals have a beta of 0.61, meaning that their average stock price is 39% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for Popular and its rivals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Popular | 0 | 1 | 11 | 1 | 3.00 |
| Popular Competitors | 7458 | 30171 | 27726 | 1451 | 2.35 |
Popular presently has a consensus target price of $186.83, indicating a potential upside of 17.53%. As a group, “Banks” companies have a potential upside of 15.75%. Given Popular’s stronger consensus rating and higher possible upside, analysts plainly believe Popular is more favorable than its rivals.
Valuation and Earnings
This table compares Popular and its rivals top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Popular | $4.44 billion | $833.16 million | 10.02 |
| Popular Competitors | $13.77 billion | $2.41 billion | 16.82 |
Popular’s rivals have higher revenue and earnings than Popular. Popular is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Dividends
Popular pays an annual dividend of $3.60 per share and has a dividend yield of 2.3%. Popular pays out 22.7% 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. Popular has raised its dividend for 6 consecutive years.
Insider & Institutional Ownership
87.3% of Popular shares are held by institutional investors. Comparatively, 47.7% of shares of all “Banks” companies are held by institutional investors. 2.1% of Popular 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, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Popular and its rivals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Popular | 22.36% | 16.08% | 1.32% |
| Popular Competitors | 15.72% | 9.53% | 0.93% |
Summary
Popular beats its rivals on 10 of the 15 factors compared.
About Popular
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 provides savings, NOW, money market, and other interest-bearing demand accounts; non-interest bearing demand deposits; and certificates of deposit. It also offers commercial and industrial, commercial multi-family, commercial real estate, and residential mortgage loans; consumer loans, including personal loans, credit cards, automobile loans, home equity lines of credit, and other loans to individual borrowers; construction loans; and lease financing comprising automobile loans/leases. In addition, the company provides investment banking, auto and equipment leasing and financing, broker-dealer, and insurance services; debit cards; and online banking services. Popular, Inc. was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.
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