Head-to-head review: S&T Bancorp (NASDAQ: STBA) and OFG Bancorp (NYSE: OFG)


S&T Bancorp (NASDAQ: STBAGet a rating) and OFG Bancorp (NYSE: OFGGet a rating) are both small-cap finance companies, but which business is superior? We’ll compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Dividends

S&T Bancorp pays an annual dividend of $1.20 per share and has a dividend yield of 4.3%. OFG Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 2.3%. S&T Bancorp pays 43.8% of its profits as a dividend. OFG Bancorp pays 19.9% ​​of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. S&T Bancorp has increased its dividend for 2 consecutive years and OFG Bancorp has increased its dividend for 2 consecutive years.

Profitability

This table compares the net margins, return on equity and return on assets of S&T Bancorp and OFG Bancorp.

Net margins Return on equity return on assets
S&T Bancorp 30.99% 9.00% 1.14%
OFG Bancorp 26.28% 14.53% 1.49%

Analyst Recommendations

This is a summary of current recommendations and price targets for S&T Bancorp and OFG Bancorp, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
S&T Bancorp 0 3 1 0 2.25
OFG Bancorp 0 0 2 0 3.00

S&T Bancorp currently has a consensus price target of $30.23, indicating a potential upside of 7.87%. OFG Bancorp has a consensus price target of $32.50, indicating a potential upside of 26.26%. Given OFG Bancorp’s stronger consensus rating and higher likely upside, analysts clearly believe that OFG Bancorp is more favorable than S&T Bancorp.

Insider and Institutional Ownership

61.1% of S&T Bancorp shares are held by institutional investors. By comparison, 94.0% of OFG Bancorp’s shares are held by institutional investors. 1.5% of S&T Bancorp shares are held by insiders. By comparison, 2.7% of OFG Bancorp’s shares are held by insiders. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a company is poised for long-term growth.

Valuation and benefits

This table compares the revenue, earnings per share (EPS) and valuation of S&T Bancorp and OFG Bancorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
S&T Bancorp $353.87 million 3.11 $110.34 million $2.74 10.23
OFG Bancorp $578.46 million 2.16 $146.15 million $3.01 8.55

OFG Bancorp has higher revenue and profit than S&T Bancorp. OFG Bancorp trades at a lower price-to-earnings ratio than S&T Bancorp, indicating that it is currently the more affordable of the two stocks.

Volatility and risk

S&T Bancorp has a beta of 0.65, suggesting its stock price is 35% less volatile than the S&P 500. In comparison, OFG Bancorp has a beta of 1.21, suggesting its stock price is 21% more volatile than the S&P 500.

Summary

OFG Bancorp beats S&T Bancorp on 12 of the 16 factors compared between the two stocks.

S&T Bancorp Company Profile (Get a rating)

S&T Bancorp, Inc. operates as a bank holding company for S&T Bank which provides retail and commercial banking products and services. The Company operates through six segments: commercial, commercial and industrial real estate, corporate banking, commercial construction, consumer real estate and other consumer goods. The company accepts demand and term deposits; and offers commercial and consumer loans, cash management and brokerage and trust services, as well as custodial and custodian of employee benefits. She also manages private investment accounts for individuals and institutions. Additionally, the Company distributes life and long-term disability insurance products, as well as title insurance agency services to commercial clients; and acts as a reinsurer of life, accident and health insurance policies. As of December 31, 2021, it operated 73 bank branches and 5 loan origination offices located in Western Pennsylvania, Eastern Pennsylvania, Northeastern Ohio, Central Ohio and upstate New York. S&T Bancorp, Inc. was founded in 1902 and is headquartered in Indiana, Pennsylvania.

OFG Bancorp Company Profile (Get a rating)

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management and Treasury. The company offers checking and savings accounts, as well as term deposit products; commercial, consumer, automobile and mortgage loan services; financial planning and insurance services; and corporate and personal trust and pension services. It also provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks and bonds to retail and institutional clients. ; and separately managed accounts and mutual fund asset allocation programs. In addition, the company is engaged in insurance and reinsurance agency business; pension plan administration and service; various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, US government-sponsored agency bonds, US Treasury securities and money market instruments; and managing and participating in public offerings and private placements of debt and equity securities. In addition, it offers fund management and investment banking services; and engages in asset and liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives and borrowings. The company operates through a network of 50 branches in Puerto Rico and 2 branches in USVI. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.



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About Meredith Campagna

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