Provident Financial Services (NYSE:PFS) vs. Equity Bancshares (NYSE:EQBK) Financial Contrast

Equity Bancshares (NYSE:EQBK – Get Free Report) and Provident Financial Services (NYSE:PFS – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Profitability

This table compares Equity Bancshares and Provident Financial Services’ net margins, return on equity and return on assets.

Earnings and Valuation

This table compares Equity Bancshares and Provident Financial Services”s gross revenue, earnings per share (EPS) and valuation.

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

Risk and Volatility

Equity Bancshares has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Provident Financial Services has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Equity Bancshares and Provident Financial Services, as reported by MarketBeat.com.

Equity Bancshares presently has a consensus price target of $53.67, indicating a potential upside of 13.04%. Provident Financial Services has a consensus price target of $26.79, indicating a potential upside of 20.46%. Given Provident Financial Services’ stronger consensus rating and higher possible upside, analysts clearly believe Provident Financial Services is more favorable than Equity Bancshares.

Insider and Institutional Ownership

71.8% of Equity Bancshares shares are owned by institutional investors. Comparatively, 72.0% of Provident Financial Services shares are owned by institutional investors. 14.5% of Equity Bancshares shares are owned by company insiders. Comparatively, 3.0% of Provident Financial Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Equity Bancshares pays an annual dividend of $0.88 per share and has a dividend yield of 1.9%. Provident Financial Services pays an annual dividend of $0.96 per share and has a dividend yield of 4.3%. Equity Bancshares pays out 19.5% of its earnings in the form of a dividend. Provident Financial Services pays out 40.0% 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. Equity Bancshares has raised its dividend for 3 consecutive years.

About Equity Bancshares

(Get Free Report)

Equity Bancshares, Inc. operates as the bank holding company for Equity Bank that provides a range of banking, mortgage banking, and financial services to individual and corporate customers. The company accepts various demand, savings, money market, and time deposits. Its loan products include commercial and industrial, commercial real estate-backed, commercial lines of credit, working capital, term, equipment financing, acquisition, expansion and development, borrowing base, real estate construction, homebuilder, agricultural, government guaranteed, and other loan products to national and regional companies, restaurant franchisees, hoteliers, real estate developers, manufacturing and industrial companies, agribusiness companies, and other businesses. The company’s loan products also comprise various consumer loans to individuals and professionals, including residential real estate loans, home equity loans and lines of credit, installment loans, unsecured and secured personal lines of credit, overdraft protection, and letters of credit. It also provides debit cards; online banking solutions, such as access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions comprising remote check deposits with mobile bill pay; ATMs; and treasury management, wire transfer, automated clearing house, and stop payment services. In addition, the company offers cash management deposit products, such as lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts, as well as banking services through telephone, mail, and personal appointments. As of December 31, 2021, it operated a network of 69 branches in Arkansas, Kansas, Missouri, and Oklahoma. The company was founded in 2002 and is headquartered in Wichita, Kansas.

About Provident Financial Services

(Get Free Report)

Provident Financial Services, Inc. operates as the bank holding company for Provident Bank that provides various banking products and services to individuals, families, and businesses in the United States. Its deposit products include savings, checking, interest-bearing checking, money market deposit, and certificate of deposit accounts, as well as IRA products. The company's loan portfolio comprises commercial real estate loans that are secured by properties, such as multi-family apartment buildings, office buildings, retail and industrial properties, and office buildings; 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, personal loans and unsecured lines of credit, and auto and recreational vehicle loans. It also offers cash management, remote deposit capture, payroll origination, escrow account management, and online and mobile banking services; and business credit cards. In addition, the company provides wealth management services comprising investment management, trust and estate administration, financial planning, and tax compliance and planning. Further, it 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. The company was founded in 1839 and is headquartered in Jersey City, New Jersey.