Park Sterling (NASDAQ: PSTB) and Enterprise Bancorp (NASDAQ:EBTC) are both small-cap financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.
This is a summary of current ratings for Park Sterling and Enterprise Bancorp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Earnings & Valuation
This table compares Park Sterling and Enterprise Bancorp’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Park Sterling||$140.91 million||4.86||$19.94 million||$0.56||22.98|
|Enterprise Bancorp||$106.76 million||3.69||$18.75 million||$1.86||18.28|
Park Sterling has higher revenue and earnings than Enterprise Bancorp. Enterprise Bancorp is trading at a lower price-to-earnings ratio than Park Sterling, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
82.6% of Park Sterling shares are held by institutional investors. Comparatively, 19.8% of Enterprise Bancorp shares are held by institutional investors. 7.3% of Park Sterling shares are held by insiders. Comparatively, 19.7% of Enterprise Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Park Sterling pays an annual dividend of $0.16 per share and has a dividend yield of 1.2%. Enterprise Bancorp pays an annual dividend of $0.54 per share and has a dividend yield of 1.6%. Park Sterling pays out 28.6% of its earnings in the form of a dividend. Enterprise Bancorp pays out 29.0% 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.
This table compares Park Sterling and Enterprise Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Park Sterling has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500. Comparatively, Enterprise Bancorp has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.
Park Sterling beats Enterprise Bancorp on 8 of the 13 factors compared between the two stocks.
About Park Sterling
Park Sterling Corporation is a holding company for Park Sterling Bank (the Bank). The Bank is a North Carolina-chartered commercial non-member bank. The Company provides banking services to small and medium-sized businesses, real estate owners, residential builders, institutions, professionals and consumers doing business or residing within its target markets. It provides a range of banking products, including personal, business and non-profit checking accounts, interest on lawyer trust accounts (IOLTA), individual retirement accounts, business and personal money market accounts, time deposits, overdraft protection, safe deposit boxes, and online and mobile banking. Its wealth management activities include investment management, private banking, personal trust and investment brokerage services. Its cash management activities include remote deposit capture, lockbox services, sweep accounts, purchasing cards, automated clearing house (ACH) and wire payments.
About Enterprise Bancorp
Enterprise Bancorp, Inc. operates as the holding company of Enterprise Bank and Trust Company (the Bank). The Company is engaged in the business of gathering deposits from the general public and investing primarily in loans and investment securities and utilizing the resulting cash flows to conduct operations, expand the branch network, and pay dividends to stockholders. Through the Bank and its subsidiaries, the Company offers a range of commercial and consumer loan products, deposit products and cash management services. The Company also offers investment advisory and wealth management, trust and insurance services. The Company offers lending services to business entities, non-profit organizations, professionals and individuals. Loans made to businesses include commercial mortgage loans; construction and land development loans; secured and unsecured commercial loans; lines of credit, and standby letters of credit.
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