Critical Analysis: Citizens (NASDAQ:CIZN) versus Parke Bancorp (NASDAQ:PKBK)

Profitability

This table compares Citizens and Parke Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Citizens	7.00%	11.28%	0.37%
Parke Bancorp	21.25%	9.41%	1.35%

Dividends

Citizens pays an annual dividend of $0.64 per share and has a dividend yield of 6.3%. Parke Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 3.6%. Citizens pays out 65.3% of its earnings in the form of a dividend. Parke Bancorp pays out 31.7% 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.

Valuation and Earnings

This table compares Citizens and Parke Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citizens	$40.95 million	1.40	$5.49 million	$0.98	10.41
Parke Bancorp	$63.01 million	3.77	$27.51 million	$2.27	8.80

Parke Bancorp has higher revenue and earnings than Citizens. Parke Bancorp is trading at a lower price-to-earnings ratio than Citizens, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Citizens has a beta of -0.02, indicating that its share price is 102% less volatile than the S&P 500. Comparatively, Parke Bancorp has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Institutional and Insider Ownership

9.7% of Citizens shares are held by institutional investors. Comparatively, 49.7% of Parke Bancorp shares are held by institutional investors. 8.9% of Citizens shares are held by company insiders. Comparatively, 15.3% of Parke Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Parke Bancorp beats Citizens on 10 of the 13 factors compared between the two stocks.

About Citizens

Citizens Holding Company operates as the bank holding company for The Citizens Bank of Philadelphia that provides various commercial and personal banking products and services. It offers demand deposits; and savings and time deposit accounts. The company also provides secured and unsecured loans; mortgage loans; single and multi-family housing, farm, residential and commercial construction, and commercial real estate loans; commercial, industrial, and agricultural production loans; and consumer loans, as well as issues letters of credit. In addition, it offers personal and corporate trust services; credit life and title insurance; and online and mobile banking services. The company was founded in 1908 and is headquartered in Philadelphia, Mississippi.

About Parke Bancorp

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.