Provident Financial Services (NYSE:PFS) and Community Investors Bancorp (NYSE:CIBN) Financial Analysis

Community Investors Bancorp (OTCMKTS:CIBN) and Provident Financial Services (NYSE:PFS) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Dividends

Community Investors Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.6%. Provident Financial Services pays an annual dividend of $0.92 per share and has a dividend yield of 6.5%. Provident Financial Services pays out 52.9% of its earnings in the form of a dividend. Provident Financial Services has increased its dividend for 9 consecutive years. Provident Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Community Investors Bancorp and Provident Financial Services’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Community Investors Bancorp $7.61 million 1.62 $460,000.00 N/A N/A
Provident Financial Services $435.26 million 2.14 $112.63 million $1.74 8.13

Provident Financial Services has higher revenue and earnings than Community Investors Bancorp.

Insider and Institutional Ownership

65.4% of Provident Financial Services shares are held by institutional investors. 15.8% of Community Investors Bancorp shares are held by insiders. Comparatively, 3.4% of Provident Financial Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Community Investors Bancorp and Provident Financial Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Community Investors Bancorp 0 0 0 0 N/A
Provident Financial Services 0 1 1 0 2.50

Provident Financial Services has a consensus target price of $26.00, suggesting a potential upside of 83.88%. Given Provident Financial Services’ higher probable upside, analysts plainly believe Provident Financial Services is more favorable than Community Investors Bancorp.

Risk & Volatility

Community Investors Bancorp has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, Provident Financial Services has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Profitability

This table compares Community Investors Bancorp and Provident Financial Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Community Investors Bancorp N/A N/A N/A
Provident Financial Services 22.18% 6.89% 0.97%

Summary

Provident Financial Services beats Community Investors Bancorp on 12 of the 14 factors compared between the two stocks.

About Community Investors Bancorp

Community Investors Bancorp, Inc. operates as the bank holding company for First Federal Community Bank of Bucyrus that provides personal and commercial banking services in Ohio. It accepts checking and savings accounts, individual retirement accounts, time deposits, and health savings accounts. The company offers consumer loans, including personal, auto, home equity, and home improvement loans; commercial loans, such as real estate, term, business expansion, construction, and SBA loans; and mortgages. It also provides Internet and telephone banking, debit cards, night depositary and shareholder services, merchant services, and financial planning and investment advice services. The company was founded in 1888 and is based in Bucyrus, Ohio.

About Provident Financial Services

Provident Financial Services, Inc. operates as the holding company for Provident Bank that provides various banking services to individuals, families, and businesses in the United States. The company's deposit products include savings, checking, interest-bearing checking, money market deposit, and certificate of deposit accounts, as well as IRA, and KEOGH products. Its loan portfolio comprises commercial real estate loans that are secured by properties, such as multi-family apartment buildings, office buildings, and retail and industrial properties; commercial business loans; fixed-rate and adjustable-rate mortgage loans collateralized by one- to four-family residential real estate properties; commercial construction loans; and consumer loans consisting of home equity loans, home equity lines of credit, and marine loans. The company also offers cash management, remote deposit capture, payroll origination, escrow account management, and online and mobile banking services; and business credit cards. In addition, it provides trust and estate administration services; and asset management services comprising investment management, asset allocation, trust and estate administration, financial planning, tax compliance and planning, and family office services to individuals, municipalities, non-profits, corporations, and pension funds. Further, the company sells insurance and investment products, including annuities; operates as a real estate investment trust for acquiring mortgage loans and other real estate related assets; and manages and sells real estate properties acquired through foreclosure. As of December 31, 2018, it operated 84 full-service branch offices in northern and central New Jersey, as well as in Pennsylvania. The company was founded in 1839 and is headquartered in Jersey City, New Jersey.

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