Chiba Bank (OTCMKTS:CHBAY) versus Ponce Financial Group (NASDAQ:PDLB) Critical Review
by Michael Walen · The Markets DailyPonce Financial Group (NASDAQ:PDLB – Get Free Report) and Chiba Bank (OTCMKTS:CHBAY – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.
Institutional & Insider Ownership
64.3% of Ponce Financial Group shares are held by institutional investors. 7.2% of Ponce Financial Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk and Volatility
Ponce Financial Group has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Chiba Bank has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500.
Profitability
This table compares Ponce Financial Group and Chiba Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ponce Financial Group | 16.51% | 10.52% | 1.02% |
| Chiba Bank | 20.96% | 8.25% | 0.49% |
Analyst Recommendations
This is a summary of current ratings and price targets for Ponce Financial Group and Chiba Bank, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ponce Financial Group | 0 | 1 | 0 | 2 | 3.33 |
| Chiba Bank | 0 | 1 | 0 | 0 | 2.00 |
Ponce Financial Group presently has a consensus price target of $24.00, indicating a potential upside of 19.70%. Given Ponce Financial Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Ponce Financial Group is more favorable than Chiba Bank.
Valuation and Earnings
This table compares Ponce Financial Group and Chiba Bank”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ponce Financial Group | $194.94 million | 2.49 | $28.70 million | $1.40 | 14.32 |
| Chiba Bank | $2.96 billion | 4.73 | $620.82 million | $4.72 | 19.12 |
Chiba Bank has higher revenue and earnings than Ponce Financial Group. Ponce Financial Group is trading at a lower price-to-earnings ratio than Chiba Bank, indicating that it is currently the more affordable of the two stocks.
Summary
Ponce Financial Group beats Chiba Bank on 8 of the 14 factors compared between the two stocks.
About Ponce Financial Group
Ponce Financial Group, Inc. operates as the bank holding company for Ponce Bank that provides various banking products and services. It offers various deposit products, including demand accounts, NOW/IOLA, money market, reciprocal deposits, savings accounts, and certificates of deposit to individuals, business entities, and non-profit organizations, as well as individual retirement accounts. The company also provides real estate-secured loans, which includes one-to-four family investor-owned and owner-occupied residential; multifamily residential; nonresidential property; construction and land; commercial and industrial; and business and consumer loans, as well as lines of credit. In addition, it invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or owned enterprises, as well as corporate securities, mortgage-backed securities, and Federal Home Loan Bank stock. Ponce Financial Group, Inc. was founded in 1960 and is headquartered in Bronx, New York.
About Chiba Bank
The Chiba Bank, Ltd., together with its subsidiaries, provides banking products and services in Japan and internationally. The company offers various deposit products, including savings, time deposits, currency deposits, investment trusts, bonds, and pensions; loans, which include mortgages, renovation loans, photovoltaic, vehicle, education, and other loan products; and insurance products, such as annuity, life, medical, student, death, and travel insurance. It also offers debit and credit cards, as well as internet banking services. In addition, the company engages in securities, investment management and advisory, software development, commissioned computation tasks, research and investigation of IT and financial technologies, leasing, operation, and management of investment funds, mergers and acquisition advisory, credit guarantee businesses, management and collection of claims businesses. Further, it provides loan guarantees and fee collection services; accounting, general administration entrustment, and temporary staff services; and is involved in outsourcing of operational business. Additionally, it rents and maintains office buildings and welfare facilities; provides research, survey, and consulting services; purchases and sells supplies and consumer goods; and engages in renewable energy generation. The company serves individuals and corporations. The Chiba Bank, Ltd. was incorporated in 1943 and is headquartered in Chiba City, Japan.