Financial Review: PB Bancorp (PBBI) and BankUnited (BKU)

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PB Bancorp (NASDAQ:PBBI) and BankUnited (NYSE:BKU) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and target prices for PB Bancorp and BankUnited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PB Bancorp 0 0 0 0 N/A
BankUnited 0 4 5 0 2.56

BankUnited has a consensus price target of $40.33, indicating a potential upside of 14.55%. Given BankUnited’s higher probable upside, analysts plainly believe BankUnited is more favorable than PB Bancorp.

Valuation and Earnings

This table compares PB Bancorp and BankUnited’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PB Bancorp $20.09 million 4.22 $3.12 million N/A N/A
BankUnited $1.58 billion 2.30 $324.87 million $2.36 14.92

BankUnited has higher revenue and earnings than PB Bancorp.

Volatility and Risk

PB Bancorp has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500. Comparatively, BankUnited has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Institutional and Insider Ownership

34.2% of PB Bancorp shares are owned by institutional investors. Comparatively, 96.5% of BankUnited shares are owned by institutional investors. 10.9% of PB Bancorp shares are owned by company insiders. Comparatively, 2.3% of BankUnited shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares PB Bancorp and BankUnited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PB Bancorp 19.17% 4.65% 0.75%
BankUnited 20.31% 10.71% 1.06%

Dividends

PB Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 2.5%. BankUnited pays an annual dividend of $0.84 per share and has a dividend yield of 2.4%. BankUnited pays out 35.6% of its earnings in the form of a dividend. PB Bancorp has increased its dividend for 2 consecutive years. PB Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

BankUnited beats PB Bancorp on 9 of the 15 factors compared between the two stocks.

PB Bancorp Company Profile

PB Bancorp, Inc. operates as the holding company of Putnam Bank that provides various banking products and services to individuals and small business customers primarily in Connecticut. It offers a range of deposits, including checking, savings, and money market deposit accounts, as well as negotiable order of withdrawal accounts and fixed-term certificates of deposit. The company's loan portfolio comprises residential real estate loans, including one-to four-family mortgage loans, residential construction loans, second mortgage loans, and home equity lines of credit; commercial real estate loans comprising multi-family real estate loans; commercial loans, such as term loans and revolving lines of credit; and consumer and other loans. In addition, it invests in securities. As of October 4, 2018, PB Bancorp, Inc. operated through its eight full-service offices and a full-service loan center in Putnam, Connecticut. It also operates through a special needs limited branch and limited services mobile office. The company was founded in 1862 and is headquartered in Putnam, Connecticut.

BankUnited Company Profile

BankUnited, Inc. operates as the bank holding company for BankUnited, National Association that provides a range of banking services to small and medium sized businesses, and individual and corporate customers in the United States. The company offers deposit products, such as checking, money market deposit, and savings accounts, as well as certificates of deposit; and treasury management services. Its loans portfolio includes small business loans, commercial real estate loans, equipment loans and leases, term loans, formula-based loans, municipal and non-profit loans and leases, commercial and residential mortgage warehouse lines of credit, letters of credit, and consumer loans, as well as purchases performing residential loans. The company also offers integrated on-line, mobile, and telephone banking services. As of December 31, 2017, it operated through a network of 87 branches located in 15 Florida counties; and 6 banking centers in the New York metropolitan area, as well as 89 automated teller machines. The company was formerly known as BU Financial Corporation. BankUnited, Inc. was founded in 2009 and is headquartered in Miami Lakes, Florida.

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