ConnectOne Bancorp (CNOB) versus Beneficial Bancorp (NASDAQ:BNCL) Head to Head Analysis

Beneficial Bancorp (NASDAQ: BNCL) and ConnectOne Bancorp (NASDAQ:CNOB) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitabiliy, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Profitability

This table compares Beneficial Bancorp and ConnectOne Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Beneficial Bancorp 16.20% 3.48% 0.62%
ConnectOne Bancorp 18.56% 9.27% 1.09%

Earnings & Valuation

This table compares Beneficial Bancorp and ConnectOne Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Beneficial Bancorp $191.53 million 5.80 $33.62 million $0.48 33.02
ConnectOne Bancorp $106.89 million 6.73 $33.50 million $1.05 21.48

Beneficial Bancorp has higher revenue and earnings than ConnectOne Bancorp. ConnectOne Bancorp is trading at a lower price-to-earnings ratio than Beneficial Bancorp, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Beneficial Bancorp has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, ConnectOne Bancorp has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Beneficial Bancorp and ConnectOne Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Beneficial Bancorp 0 1 0 0 2.00
ConnectOne Bancorp 0 0 3 0 3.00

Beneficial Bancorp currently has a consensus price target of $16.50, suggesting a potential upside of 4.10%. ConnectOne Bancorp has a consensus price target of $29.33, suggesting a potential upside of 30.08%. Given ConnectOne Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe ConnectOne Bancorp is more favorable than Beneficial Bancorp.

Institutional & Insider Ownership

70.0% of Beneficial Bancorp shares are held by institutional investors. Comparatively, 68.2% of ConnectOne Bancorp shares are held by institutional investors. 5.8% of Beneficial Bancorp shares are held by company insiders. Comparatively, 7.6% of ConnectOne Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Beneficial Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. ConnectOne Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 1.3%. Beneficial Bancorp pays out 50.0% of its earnings in the form of a dividend. ConnectOne Bancorp pays out 28.6% 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.

Summary

ConnectOne Bancorp beats Beneficial Bancorp on 11 of the 16 factors compared between the two stocks.

About Beneficial Bancorp

Beneficial Mutual Bancorp, Inc. is a savings and loan holding company. The Company’s business activities are the ownership of Beneficial Bank (the Bank). The Bank has also operated under the name Beneficial Mutual Savings Bank. The Bank is a Pennsylvania chartered savings bank. It attracts deposits from the general public and uses those funds to originate a variety of loans, including commercial real estate loans, consumer loans, home equity loans, one- to four-family real estate loans, commercial business loans and construction loans. It offers insurance brokerage and investment advisory services through its wholly owned subsidiaries, Beneficial Insurance Services, LLC and Beneficial Advisors, LLC, respectively. It also maintains an investment portfolio. As of December 31, 2012, it operated 36 full-service banking offices in Chester, Delaware, Montgomery, Philadelphia and Bucks Counties, Pennsylvania and 26 full-service banking offices in Burlington and Camden Counties, New Jersey.

About ConnectOne Bancorp

ConnectOne Bancorp, Inc. is a bank holding company of ConnectOne Bank (the Bank). The Bank is a community-based, full-service New Jersey-chartered commercial bank. The Bank offers a range of deposit and loan products. In addition, to attract the business of consumer and business customers, it also provides an array of other banking services. Products and services provided include personal and business checking accounts, retirement accounts, money market accounts, time and savings accounts, credit cards, wire transfers, access to automated teller services, Internet banking, Treasury Direct, automated clearing house (ACH) origination, lockbox services and mobile banking by phone. In addition, it offers safe deposit boxes. The Bank also offers remote deposit capture banking for both retail and business customers. It offers a range of deposit and loan products and services to the general public and, in particular, to small and mid-sized businesses, local professionals and individuals.

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