Critical Contrast: Citizens & Northern (NASDAQ:CZNC) & Parke Bancorp (NASDAQ:PKBK)

Earnings and Valuation

This table compares Citizens & Northern and Parke Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citizens & Northern	$137.92 million	2.32	$24.15 million	$1.44	14.39
Parke Bancorp	$119.40 million	2.35	$28.46 million	$2.33	10.11

Parke Bancorp has lower revenue, but higher earnings than Citizens & Northern. Parke Bancorp is trading at a lower price-to-earnings ratio than Citizens & Northern, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Citizens & Northern and Parke Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Citizens & Northern	14.47%	8.28%	0.86%
Parke Bancorp	22.32%	9.75%	1.39%

Dividends

Citizens & Northern pays an annual dividend of $1.12 per share and has a dividend yield of 5.4%. Parke Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 3.1%. Citizens & Northern pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Parke Bancorp pays out 30.9% of its earnings in the form of a dividend.

Risk and Volatility

Citizens & Northern has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Parke Bancorp has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Institutional and Insider Ownership

30.8% of Citizens & Northern shares are held by institutional investors. Comparatively, 49.7% of Parke Bancorp shares are held by institutional investors. 3.7% of Citizens & Northern shares are held by company insiders. Comparatively, 15.3% of Parke Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Parke Bancorp beats Citizens & Northern on 10 of the 13 factors compared between the two stocks.

About Citizens & Northern

Citizens & Northern Corporation operates as the bank holding company for Citizens & Northern Bank that provides various banking and related services to individual and corporate customers. Its deposit products include various types of checking accounts, passbook and statement savings, money market accounts, interest checking accounts, and individual retirement accounts, as well as certificates of deposit; and lending products, including commercial, mortgage, and consumer loans, as well as specialized instruments, such as commercial letters-of-credit. The company also offers wealth management services comprising 401(k) plans, retirement planning, estate planning, estate settlements, and asset management; personal and commercial insurance products; and mutual funds, annuities, educational savings accounts, and other investment products through registered agents; and reinsures credit and mortgage, life and accident, and health insurance products. Citizens & Northern Corporation was founded in 1864 and is headquartered in Wellsboro, Pennsylvania.

About Parke Bancorp

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.