Critical Survey: Prudential Bancorp (PBIP) and Its Competitors

Prudential Bancorp (NASDAQ: PBIP) is one of 35 publicly-traded companies in the “Savings institutions, except federal” industry, but how does it weigh in compared to its peers? We will compare Prudential Bancorp to related companies based on the strength of its risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Profitability

This table compares Prudential Bancorp and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prudential Bancorp 17.44% N/A N/A
Prudential Bancorp Competitors 17.07% 8.91% 0.95%

Earnings & Valuation

This table compares Prudential Bancorp and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Prudential Bancorp $50.33 million $9.56 million 12.37
Prudential Bancorp Competitors $146.26 million $14.78 million 17.96

Prudential Bancorp’s peers have higher revenue and earnings than Prudential Bancorp. Prudential Bancorp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Prudential Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 2.0%. Prudential Bancorp pays out 25.0% of its earnings in the form of a dividend. As a group, “Savings institutions, except federal” companies pay a dividend yield of 2.2% and pay out 28.2% of their earnings in the form of a dividend. Prudential Bancorp has raised its dividend for 1 consecutive years.

Risk and Volatility

Prudential Bancorp has a beta of 0.06, suggesting that its share price is 94% less volatile than the S&P 500. Comparatively, Prudential Bancorp’s peers have a beta of 0.78, suggesting that their average share price is 22% less volatile than the S&P 500.

Insider and Institutional Ownership

36.8% of Prudential Bancorp shares are owned by institutional investors. Comparatively, 39.8% of shares of all “Savings institutions, except federal” companies are owned by institutional investors. 7.0% of Prudential Bancorp shares are owned by company insiders. Comparatively, 7.6% of shares of all “Savings institutions, except federal” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Prudential Bancorp and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prudential Bancorp 0 1 0 0 2.00
Prudential Bancorp Competitors 108 412 243 12 2.21

Prudential Bancorp presently has a consensus price target of $15.00, indicating a potential upside of 8.30%. As a group, “Savings institutions, except federal” companies have a potential downside of 6.93%. Given Prudential Bancorp’s higher probable upside, analysts plainly believe Prudential Bancorp is more favorable than its peers.

Summary

Prudential Bancorp peers beat Prudential Bancorp on 12 of the 15 factors compared.

About Prudential Bancorp

Prudential Bancorp, Inc. operates as the bank holding company for Prudential Bank that provides various banking products or services. The company accepts interest-bearing and non-interest-bearing checking, money market, savings, and certificates of deposit accounts. Its loan portfolio comprises single-family residential mortgage loans, construction and land development loans, non-residential or commercial real estate mortgage loans, home equity loans and lines of credit, and commercial business loans, as well as consumer loans, such as loans secured by deposit accounts and unsecured personal loans. The company also manages a portfolio of investment and mortgage-backed securities; and provides ATM, and online and mobile banking services. It operates a main office in Philadelphia, Pennsylvania, as well as nine additional full-service branch offices, including seven in Philadelphia, Philadelphia County; one in Drexel Hill, Delaware County; and one in Huntingdon Valley, Montgomery County, Pennsylvania. Prudential Bancorp, Inc. was founded in 1886 and is headquartered in Philadelphia, Pennsylvania.

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