Premier Financial (NASDAQ:PFC) vs. Stock Yards Bancorp (NASDAQ:SYBT) Financial Survey

Premier Financial (NASDAQ:PFCGet Free Report) and Stock Yards Bancorp (NASDAQ:SYBTGet Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Volatility and Risk

Premier Financial has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Stock Yards Bancorp has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Profitability

This table compares Premier Financial and Stock Yards Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Premier Financial 16.12% 7.66% 0.87%
Stock Yards Bancorp 22.54% 12.71% 1.38%

Insider & Institutional Ownership

66.1% of Premier Financial shares are held by institutional investors. Comparatively, 56.5% of Stock Yards Bancorp shares are held by institutional investors. 2.2% of Premier Financial shares are held by insiders. Comparatively, 3.9% of Stock Yards Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Premier Financial and Stock Yards Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Premier Financial 0 3 1 0 2.25
Stock Yards Bancorp 0 4 0 0 2.00

Premier Financial presently has a consensus target price of $22.50, suggesting a potential downside of 19.21%. Stock Yards Bancorp has a consensus target price of $69.25, suggesting a potential downside of 7.48%. Given Stock Yards Bancorp’s higher possible upside, analysts clearly believe Stock Yards Bancorp is more favorable than Premier Financial.

Earnings and Valuation

This table compares Premier Financial and Stock Yards Bancorp”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Premier Financial $442.88 million 2.25 $71.40 million $1.99 13.99
Stock Yards Bancorp $508.11 million 4.34 $114.54 million $3.89 19.24

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

Dividends

Premier Financial pays an annual dividend of $1.24 per share and has a dividend yield of 4.5%. Stock Yards Bancorp pays an annual dividend of $1.24 per share and has a dividend yield of 1.7%. Premier Financial pays out 62.3% of its earnings in the form of a dividend. Stock Yards Bancorp pays out 31.9% 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. Stock Yards Bancorp has raised its dividend for 15 consecutive years.

Summary

Stock Yards Bancorp beats Premier Financial on 12 of the 17 factors compared between the two stocks.

About Premier Financial

(Get Free Report)

Premier Financial Corp., through its subsidiaries, provides various banking services. It offers demand, checking, money market, and savings accounts, as well as certificates of deposits and certificates of deposit account registry service; and investment products. The company also provides residential and commercial real estate, commercial, construction, home improvement and home equity, installment, and consumer loans. In addition, it invests in the U.S. treasury and federal government agency obligations, obligations of states and political subdivisions, mortgage-backed securities that are issued by federal agencies, residential collateralized mortgage obligations, and corporate bonds. Further, the company offers property and casualty, life, and group health insurance agency services; mezzanine funding services; and digital banking services, which include mobile banking, zelle, online bill pay, and online account opening, as well as the MoneyPass ATM network. It operates in Ohio, Michigan, Indiana, Pennsylvania, and West Virginia. The company was formerly known as First Defiance Financial Corp. and changed its name to Premier Financial Corp. in June 2020. Premier Financial Corp. was founded in 1920 and is headquartered in Defiance, Ohio.

About Stock Yards Bancorp

(Get Free Report)

Stock Yards Bancorp, Inc. operates as a holding company for Stock Yards Bank & Trust Company that provides various financial services for individuals, corporations, and others in the United States. It operates in two segments, Commercial Banking, and WM&T. The Commercial Banking segment offers a range of loan and deposit products to individual consumers and businesses in all its markets through retail lending, mortgage banking, deposit services, online banking, mobile banking, private banking, commercial lending, commercial real estate lending, leasing, treasury management services, merchant services, international banking, correspondent banking, and other banking services. This segment also provides securities brokerage services through an arrangement with a third party broker-dealer. The WM&T segment provides investment management, financial and retirement planning, and trust and estate services, as well as retirement plan management for businesses and corporations. It provides services in Louisville, central, eastern, and northern Kentucky, as well as Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets. The company was founded in 1904 and is headquartered in Louisville, Kentucky.

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