Contrasting Old Line Bancshares (OLBK) and Popular (BPOP)

Old Line Bancshares (NASDAQ: OLBK) and Popular (NASDAQ:BPOP) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.

Earnings and Valuation

This table compares Old Line Bancshares and Popular’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Old Line Bancshares $62.10 million 5.48 $17.80 million $1.43 19.10
Popular $1.71 billion 2.43 $226.46 million $2.22 18.34

Popular has higher revenue and earnings than Old Line Bancshares. Popular is trading at a lower price-to-earnings ratio than Old Line Bancshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Old Line Bancshares and Popular’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Old Line Bancshares 21.68% 10.23% 0.91%
Popular 11.57% 7.11% 0.93%

Dividends

Old Line Bancshares pays an annual dividend of $0.32 per share and has a dividend yield of 1.2%. Popular pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. Old Line Bancshares pays out 22.4% of its earnings in the form of a dividend. Popular pays out 45.0% 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Old Line Bancshares and Popular, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Old Line Bancshares 0 1 1 0 2.50
Popular 1 6 2 0 2.11

Old Line Bancshares currently has a consensus price target of $29.00, suggesting a potential upside of 6.19%. Popular has a consensus price target of $48.00, suggesting a potential upside of 17.91%. Given Popular’s higher probable upside, analysts plainly believe Popular is more favorable than Old Line Bancshares.

Volatility & Risk

Old Line Bancshares has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500. Comparatively, Popular has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Institutional & Insider Ownership

41.6% of Old Line Bancshares shares are held by institutional investors. Comparatively, 85.9% of Popular shares are held by institutional investors. 25.1% of Old Line Bancshares shares are held by company insiders. Comparatively, 1.3% of Popular shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Popular beats Old Line Bancshares on 9 of the 16 factors compared between the two stocks.

About Old Line Bancshares

Old Line Bancshares, Inc. is the holding company of Old Line Bank (The Bank). The Bank is a chartered trust company engaged in commercial banking business, making various types of loans, investments and accepting deposits. The Bank markets its financial services to small to medium sized businesses, entrepreneurs, professionals, consumers and clients. The Bank, through its division Old Line Financial Services, provides retirement planning and products, as well as investment services, including investment management, estate and succession planning, and allows its customers to directly purchase individual stocks, bonds and mutual funds. The Bank offers its customers safe deposit boxes, wire transfer services, debit cards, prepaid cards, automated teller machines at all of its branch locations, investment services and credit cards through a third party processor.

About Popular

Popular, Inc. (Popular) is a financial holding company. The Company operates in two segments: Banco Popular de Puerto Rico (BPPR), which includes its Puerto Rico business, and Banco Popular North America (BPNA), which includes its the United States mainland business. The Company has operations in Puerto Rico, the United States and the Caribbean. The Company’s BPPR segment provides retail, mortgage and commercial banking services through its banking subsidiary, Banco Popular de Puerto Rico, as well as auto and equipment leasing and financing, investment banking, broker-dealer and insurance services through specialized subsidiaries. The Company’s BPNA segment consists of Popular North America, Inc. (PNA) functioning as the holding company for its operations in the United States. It also operates PNA’s subsidiary, E-LOAN, Inc. The banking operations of BPNA in the United States mainland are based in New York, Florida and New Jersey, conducted under the name of Popular Community Bank.

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