Financial Contrast: Peapack-Gladstone Financial (NASDAQ:PGC) and Banco Itau Chile Spon (NASDAQ:ITCLY)

Peapack-Gladstone Financial (NASDAQ:PGC) and Banco Itau Chile Spon (NASDAQ:ITCLY) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Peapack-Gladstone Financial and Banco Itau Chile Spon, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peapack-Gladstone Financial	0	1	1	0	2.50
Banco Itau Chile Spon	0	0	0	0	N/A

Peapack-Gladstone Financial presently has a consensus target price of $28.00, suggesting a potential upside of 16.18%. Given Peapack-Gladstone Financial’s higher probable upside, equities research analysts clearly believe Peapack-Gladstone Financial is more favorable than Banco Itau Chile Spon.

Earnings & Valuation

This table compares Peapack-Gladstone Financial and Banco Itau Chile Spon’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peapack-Gladstone Financial	$377.59 million	1.13	$48.85 million	$2.18	11.06
Banco Itau Chile Spon	$3.99 billion	0.50	$423.68 million	$0.66	4.70

Banco Itau Chile Spon has higher revenue and earnings than Peapack-Gladstone Financial. Banco Itau Chile Spon 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.

Dividends

Peapack-Gladstone Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Banco Itau Chile Spon pays an annual dividend of $0.17 per share and has a dividend yield of 5.5%. Peapack-Gladstone Financial pays out 9.2% of its earnings in the form of a dividend. Banco Itau Chile Spon pays out 25.8% 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.

Profitability

This table compares Peapack-Gladstone Financial and Banco Itau Chile Spon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peapack-Gladstone Financial	10.11%	7.23%	0.64%
Banco Itau Chile Spon	10.54%	10.65%	0.91%

Insider and Institutional Ownership

72.8% of Peapack-Gladstone Financial shares are held by institutional investors. Comparatively, 22.2% of Banco Itau Chile Spon shares are held by institutional investors. 7.6% of Peapack-Gladstone Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Peapack-Gladstone Financial beats Banco Itau Chile Spon on 8 of the 14 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 Banco Itau Chile Spon

Banco Ita? Chile provides banking services principally in Chile and Colombia. It provides wholesale and corporate banking; real estate and construction and retail, private, companies and personal banking services, as well as treasury and other financial services. Banco Ita? Chile, formerly known as Ita? Corpbanca, is based in Santiago, Chile.