Parke Bancorp (NASDAQ:PKBK) & Two Rivers Bancorp (NASDAQ:TRCB) Critical Review

Parke Bancorp (NASDAQ:PKBK) and Two Rivers Bancorp (NASDAQ:TRCB) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Parke Bancorp and Two Rivers Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Parke Bancorp 0 0 0 0 N/A
Two Rivers Bancorp 0 1 1 0 2.50

Two Rivers Bancorp has a consensus target price of $18.00, suggesting a potential downside of 14.89%. Given Two Rivers Bancorp’s higher probable upside, analysts plainly believe Two Rivers Bancorp is more favorable than Parke Bancorp.

Institutional and Insider Ownership

37.7% of Parke Bancorp shares are owned by institutional investors. Comparatively, 24.4% of Two Rivers Bancorp shares are owned by institutional investors. 17.8% of Parke Bancorp shares are owned by company insiders. Comparatively, 15.0% of Two Rivers Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Parke Bancorp and Two Rivers Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Parke Bancorp $65.28 million 3.80 $24.82 million N/A N/A
Two Rivers Bancorp $50.02 million 3.69 $11.21 million $1.31 16.15

Parke Bancorp has higher revenue and earnings than Two Rivers Bancorp.

Risk and Volatility

Parke Bancorp has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Two Rivers Bancorp has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500.

Dividends

Parke Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 2.8%. Two Rivers Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.3%. Two Rivers Bancorp pays out 21.4% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Parke Bancorp 36.47% 17.81% 1.89%
Two Rivers Bancorp 20.47% 9.97% 1.06%

Summary

Parke Bancorp beats Two Rivers Bancorp on 11 of the 14 factors compared between the two stocks.

Parke Bancorp Company Profile

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, 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. It operates through full-service offices in Northfield, New Jersey; Washington Township, Gloucester County, New Jersey; Philadelphia, Pennsylvania; and Galloway Township, New Jersey. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.

Two Rivers Bancorp Company Profile

Two River Bancorp operates as the bank holding company for Two River Community Bank that provides a range of banking services to small and medium-sized businesses, not-for-profit organizations, professionals, and individuals. The company offers deposit products, including checking, savings, and money market accounts, as well as certificates of deposit. It also provides construction and land development loans; commercial and industrial loans; commercial real estate loans; residential real estate loans consisting of single-family detached units, individual condominium units, two-to-four family dwelling units, and townhouses; consumer loans comprising home equity lines of credit, home equity loans, personal loans, automobile loans, and overdraft protection; participation loans; and small business administration loans. In addition, the company offers remote deposit capture, ACH, direct deposit, coin counting, night depository, corporate business, and telephone and Internet banking services; and safe deposit boxes, debit and ATM cards, money orders, wire transfers, and automated teller machines. It operates 13 branches and 2 loan production offices in Monmouth, Middlesex, Union, and Ocean Counties, New Jersey. The company was formerly known as Community Partners Bancorp and changed its name to Two River Bancorp in June 2013. Two River Bancorp was founded in 2000 and is headquartered in Tinton Falls, New Jersey.

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