Boston Private Financial (NASDAQ:BPFH) and IA 1ST BANCSHAR/SH (OTCMKTS:IOFB) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Valuation and Earnings

This table compares Boston Private Financial and IA 1ST BANCSHAR/SH’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Boston Private Financial $311.29 million 2.92 $80.38 million $0.97 11.19
IA 1ST BANCSHAR/SH N/A N/A $2.31 million N/A N/A

Boston Private Financial has higher revenue and earnings than IA 1ST BANCSHAR/SH.

Dividends

Boston Private Financial pays an annual dividend of $0.48 per share and has a dividend yield of 4.4%. IA 1ST BANCSHAR/SH pays an annual dividend of $1.16 per share and has a dividend yield of 3.0%. Boston Private Financial pays out 49.5% of its earnings in the form of a dividend. Boston Private Financial has raised its dividend for 6 consecutive years. Boston Private Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

89.3% of Boston Private Financial shares are held by institutional investors. Comparatively, 7.1% of IA 1ST BANCSHAR/SH shares are held by institutional investors. 1.9% of Boston Private Financial shares are held by insiders. Comparatively, 12.8% of IA 1ST BANCSHAR/SH shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Boston Private Financial has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, IA 1ST BANCSHAR/SH has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Boston Private Financial and IA 1ST BANCSHAR/SH, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boston Private Financial 0 1 0 0 2.00
IA 1ST BANCSHAR/SH 0 0 0 0 N/A

Boston Private Financial presently has a consensus price target of $15.00, indicating a potential upside of 38.25%. Given Boston Private Financial’s higher possible upside, analysts plainly believe Boston Private Financial is more favorable than IA 1ST BANCSHAR/SH.

Profitability

This table compares Boston Private Financial and IA 1ST BANCSHAR/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Boston Private Financial 18.42% 10.87% 0.96%
IA 1ST BANCSHAR/SH N/A N/A N/A

Summary

Boston Private Financial beats IA 1ST BANCSHAR/SH on 10 of the 13 factors compared between the two stocks.

Boston Private Financial Company Profile

Boston Private Financial Holdings, Inc. operates as the bank holding company for Boston Private Bank & Trust Company that provides a range of banking services in the United States. It operates in three segments: Private Banking, Wealth Management and Trust, and Affiliate Partners. The company accepts deposit products, such as checking accounts, savings and NOW accounts, money market accounts, and certificates of deposit. Its loan products include loans to individuals, such as residential mortgage loans, mortgage loans on investment or vacation properties, unsecured and secured personal lines of credits, home equity loans, and overdraft protection; and loans to businesses consisting of commercial and mortgage loans, revolving lines of credit, working capital loans, equipment financing, community lending programs, and construction and land loans. In addition, it provides wealth management solutions comprising customized investment solutions, wealth planning, trust, and family office services for high net worth individuals and families; services for pension funds, endowments, trusts, foundations and select institutions, mutual funds, and high net worth individuals and their families; and financial planning, tax planning and preparation, estate and insurance planning, retirement planning, charitable planning, and intergenerational gifting and succession planning. As of January 31, 2019, the company operated offices in Boston, New York, Los Angeles, San Francisco, San Jose, and Florida. Boston Private Financial Holdings, Inc. was founded in 1987 and is headquartered in Boston, Massachusetts.

IA 1ST BANCSHAR/SH Company Profile

Iowa First Bancshares Corp. operates as the bank holding company for First National Bank of Muscatine and First National Bank in Fairfield that provide various banking products and services for individuals and businesses in Iowa. It offers checking, savings, money market, and time deposit accounts; and commercial and industrial, commercial real estate owner and nonowner occupied, agriculture, residential real estate, and consumer and other loans. The company also provides safe deposit, funds transmitting, trust, debit and credit card, Internet banking, automated teller machine, and other banking services. It operates through four locations in Muscatine and two locations in Fairfield, Iowa. The company was founded in 1984 and is headquartered in Muscatine, Iowa.

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