Meta Financial Group (CASH) and People’s United Financial (PBCT) Financial Analysis
Meta Financial Group (NASDAQ: CASH) and People’s United Financial (NASDAQ:PBCT) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
Meta Financial Group pays an annual dividend of $0.52 per share and has a dividend yield of 0.6%. People’s United Financial pays an annual dividend of $0.69 per share and has a dividend yield of 3.8%. Meta Financial Group pays out 10.9% of its earnings in the form of a dividend. People’s United Financial pays out 75.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. People’s United Financial has increased its dividend for 10 consecutive years. People’s United Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares Meta Financial Group and People’s United Financial’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Meta Financial Group||$280.27 million||3.05||$44.91 million||$4.79||18.55|
|People’s United Financial||$1.47 billion||4.32||$281.00 million||$0.91||20.14|
People’s United Financial has higher revenue and earnings than Meta Financial Group. Meta Financial Group is trading at a lower price-to-earnings ratio than People’s United Financial, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
71.4% of Meta Financial Group shares are held by institutional investors. Comparatively, 76.4% of People’s United Financial shares are held by institutional investors. 6.1% of Meta Financial Group shares are held by insiders. Comparatively, 2.7% of People’s United Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of current ratings and target prices for Meta Financial Group and People’s United Financial, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Meta Financial Group||0||0||3||0||3.00|
|People’s United Financial||2||8||0||0||1.80|
Meta Financial Group currently has a consensus price target of $94.33, indicating a potential upside of 6.17%. People’s United Financial has a consensus price target of $18.84, indicating a potential upside of 2.80%. Given Meta Financial Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Meta Financial Group is more favorable than People’s United Financial.
Volatility and Risk
Meta Financial Group has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, People’s United Financial has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.
This table compares Meta Financial Group and People’s United Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Meta Financial Group||16.03%||15.91%||1.50%|
|People’s United Financial||19.32%||6.28%||0.78%|
Meta Financial Group beats People’s United Financial on 9 of the 17 factors compared between the two stocks.
Meta Financial Group Company Profile
Meta Financial Group, Inc. is a unitary savings and loan holding company. The Company operates through its banking subsidiary, MetaBank (the Bank). Its segments include Payments, Banking, and Corporate Services/Other. MetaBank is both a community-oriented financial institution offering a range of financial services to meet the needs of the communities it serves and a payments company providing services on a nationwide basis. It operates in both the banking and payments industries through MetaBank, its retail banking operation; Meta Payment Systems (MPS), its electronic payments division; AFS/IBEX Financial Services Inc. (AFS/IBEX), its insurance premium financing division, and Refund Advantage, EPS Financial, LLC (EPS) Financial and Specialty Consumer Services, its tax-related financial solutions divisions.
People’s United Financial Company Profile
People’s United Financial, Inc. is a bank holding company and a financial holding company of People’s United Bank (the Bank). The Bank is engaged in providing commercial banking, retail banking and wealth management services to individual, corporate and municipal customers. The Company operates through two segments: Commercial Banking and Retail Banking. Commercial Banking segment is engaged in commercial real estate lending, commercial and industrial lending, and commercial deposit gathering activities. It offers cash management, correspondent banking, municipal banking, institutional trust services, corporate trust, insurance services and private banking, among others. Retail Banking segment provides consumer lending (including residential mortgage and home equity lending) and consumer deposit gathering activities. The Retail Banking segment also includes brokerage, financial advisory services, investment management services, and life insurance and non-institutional trust services.
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