Head-To-Head Analysis: Arrow Financial (NASDAQ:AROW) vs. Pioneer Bancorp (NASDAQ:PBFS)

Arrow Financial (NASDAQ:AROW) and Pioneer Bancorp (NASDAQ:PBFS) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for Arrow Financial and Pioneer Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arrow Financial	0	1	1	0	2.50
Pioneer Bancorp	0	0	1	0	3.00

Arrow Financial currently has a consensus target price of $34.50, indicating a potential downside of 3.58%. Given Arrow Financial’s higher probable upside, analysts plainly believe Arrow Financial is more favorable than Pioneer Bancorp.

Volatility and Risk

Arrow Financial has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Pioneer Bancorp has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Institutional & Insider Ownership

46.7% of Arrow Financial shares are held by institutional investors. 3.5% of Arrow Financial shares are held by insiders. Comparatively, 2.8% of Pioneer Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Arrow Financial and Pioneer Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arrow Financial	20.72%	12.38%	1.17%
Pioneer Bancorp	16.17%	5.02%	0.74%

Earnings and Valuation

This table compares Arrow Financial and Pioneer Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arrow Financial	$242.58 million	2.44	$43.95 million	$3.09	11.58
Pioneer Bancorp	$31.81 million	12.47	$6.45 million	$0.66	23.97

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

Summary

Arrow Financial beats Pioneer Bancorp on 10 of the 13 factors compared between the two stocks.

About Arrow Financial

Arrow Financial Corporation, a bank holding company, provides commercial and consumer banking, and financial products and services. The company’s deposit products include demand deposits, interest-bearing checking accounts, savings deposits, time deposits, and other time deposits. Its lending activities comprise commercial loans, such as term loans, time notes, and lines of credit; and commercial real estate loans to finance real estate purchases, refinancing, expansions, and enhancement to commercial properties, as well as commercial construction and land development loans to finance projects. The company’s lending activities also include consumer installment loans to finance personal expenditures, personal lines of credit, overdraft protection, and automobile loans; and residential real estate loans, fixed home equity loans, and home equity lines of credit for consumers to finance home improvements, debt consolidation, education, and other uses. In addition, it maintains an indirect lending program. Further, the company provides retirement planning, trust, and estate administration services for individuals, as well as pension, profit-sharing, and employee benefit plan administration services for corporations. Additionally, it offers insurance agency services comprising group health care policies and life insurance, and property and casualty insurance products; and investment advisory services to its proprietary mutual funds, as well as holds a real estate investment trust. It operates in the northeastern region of New York State in Warren, Washington, Saratoga, Essex, Clinton, Rensselaer, Albany, and Schenectady counties. Arrow Financial Corporation was founded in 1851 and is headquartered in Glens Falls, New York.

About Pioneer Bancorp

Pioneer Bancorp, Inc. operates as a holding company for Pioneer Savings Bank that provides various banking products and services in New York. The company accepts various deposit products, such as demand, savings, and money market accounts, as well as certificates of deposit accounts. Its loan products include commercial real estate, commercial and industrial, commercial construction, residential mortgage lending, consumer loans, and home equity lines of credit. The company also invests in the U.S. governmental securities, fixed rate collateralized mortgage obligations, mortgage-backed securities, fixed-rate investment grade bonds, and equity securities. In addition, the company offers personal and commercial insurance products, including homeowners, automobile, and comprehensive business insurance; employee benefit products and services, such as group health, dental, disability, and life insurance products, as well as defined contribution, defined benefit administration, and human resource management services; and wealth management services comprising investment advice, retirement income planning, estate planning, business succession, and employer retirement planning. The company was founded in 1889 and is based in Albany, New York. Pioneer Bancorp, Inc. operates as a subsidiary of Pioneer Bancorp, MHC.