Contrasting Oxford Bank (OTCMKTS:OXBC) & Peapack-Gladstone Financial (NASDAQ:PGC)

Peapack-Gladstone Financial (NASDAQ:PGC) and Oxford Bank (OTCMKTS:OXBC) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Institutional and Insider Ownership

72.8% of Peapack-Gladstone Financial shares are owned by institutional investors. Comparatively, 4.5% of Oxford Bank shares are owned by institutional investors. 7.2% of Peapack-Gladstone Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Peapack-Gladstone Financial and Oxford Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peapack-Gladstone Financial	8.12%	5.60%	0.51%
Oxford Bank	N/A	N/A	N/A

Volatility and Risk

Peapack-Gladstone Financial has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Oxford Bank has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Peapack-Gladstone Financial and Oxford Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peapack-Gladstone Financial	0	0	2	0	3.00
Oxford Bank	0	0	0	0	0.00

Peapack-Gladstone Financial currently has a consensus target price of $33.50, indicating a potential downside of 7.66%. Given Peapack-Gladstone Financial’s stronger consensus rating and higher possible upside, equities analysts plainly believe Peapack-Gladstone Financial is more favorable than Oxford Bank.

Valuation & Earnings

This table compares Peapack-Gladstone Financial and Oxford Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peapack-Gladstone Financial	$377.59 million	1.70	$48.85 million	$1.81	20.04
Oxford Bank	N/A	N/A	$12.06 million	$4.50	7.44

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

Summary

Peapack-Gladstone Financial beats Oxford Bank on 12 of the 13 factors compared between the two stocks.

About Peapack-Gladstone Financial

Peapack-Gladstone Financial Corporation operates as the bank holding company for Peapack-Gladstone Bank that provides private banking and wealth management services in the United States. The company operates in two segments, Banking and Peapack Private. It offers checking and savings accounts, money market and interest-bearing checking accounts, certificates of deposit, and individual retirement accounts. The company also provides working capital lines of credit, term loans for fixed asset acquisitions, commercial mortgages, multi-family mortgages, and other forms of asset-based financing services; and residential mortgages, home equity lines of credit, and other second mortgage loans. In addition, it offers corporate and industrial (C&I) and equipment finance, commercial real estate, multifamily, residential, and consumer lending activities; treasury management services; C&I advisory services; escrow management; deposit generation; investment management services; personal trust services, including services as executor, trustee, administrator, custodian, and guardian; and other financial planning, tax preparation, and advisory services. Further, the company provides telephone and Internet banking, merchant credit card, and customer support sales services. Its private banking clients include businesses, non-profits, and consumers; wealth management clients comprise individuals, families, foundations, endowments, trusts, and estates; and commercial loan clients include business owners, professionals, retailers, contractors, and real estate investors. The company operates its private banking locations in Bedminster, Morristown, Princeton, and Teaneck, New Jersey; and branches in Somerset, Morris, Hunterdon, and Union counties, as well as operates automated teller machines. Peapack-Gladstone Financial Corporation was founded in 1921 and is headquartered in Bedminster, New Jersey.

About Oxford Bank

Oxford Bank Corporation provides banking products and services to various customers in Michigan. Its deposit products include savings, checking, and individual retirement accounts, as well as certificates of deposit. The company's loan portfolio comprises home mortgage, home equity, auto, student, term, commercial real estate, and small business administration loans, as well as lines of credit. It also offers cash management, merchant card, remote deposit capture, payroll, overdraft protection, wire transfer, night depository, and notary services, as well as safe deposit box and interactive teller machine services; online, telephone, and mobile banking services; debit and credit cards; and insurance products. The company operates its branches in Clarkston, Davison, Dryden, Lake Orion, Ortonville, Oxford, and Oakland. Oxford Bank Corporation was founded in 1884 and is based in Oxford, Michigan.