Comparing Peoples Bancorp of North Carolina (NASDAQ:PEBK) and University Bancorp (OTCMKTS:UNIB)

University Bancorp (OTCMKTS:UNIB – Get Free Report) and Peoples Bancorp of North Carolina (NASDAQ:PEBK – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Earnings & Valuation

This table compares University Bancorp and Peoples Bancorp of North Carolina”s revenue, earnings per share and valuation.

Peoples Bancorp of North Carolina has lower revenue, but higher earnings than University Bancorp.

Analyst Ratings

This is a breakdown of current ratings and price targets for University Bancorp and Peoples Bancorp of North Carolina, as provided by MarketBeat.com.

Dividends

University Bancorp pays an annual dividend of $0.45 per share and has a dividend yield of 2.8%. Peoples Bancorp of North Carolina pays an annual dividend of $0.76 per share and has a dividend yield of 3.0%. Peoples Bancorp of North Carolina pays out 25.6% of its earnings in the form of a dividend. Peoples Bancorp of North Carolina has raised its dividend for 11 consecutive years. Peoples Bancorp of North Carolina is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

University Bancorp has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Peoples Bancorp of North Carolina has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Profitability

This table compares University Bancorp and Peoples Bancorp of North Carolina’s net margins, return on equity and return on assets.

Insider & Institutional Ownership

43.8% of Peoples Bancorp of North Carolina shares are held by institutional investors. 63.7% of University Bancorp shares are held by company insiders. Comparatively, 16.9% of Peoples Bancorp of North Carolina shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Peoples Bancorp of North Carolina beats University Bancorp on 9 of the 12 factors compared between the two stocks.

About University Bancorp

(Get Free Report)

University Bancorp, Inc. operates as the bank holding company for University Bank that provides various personal, business, and community banking services in the United States. It offers checking, NOW, savings, money market, time deposit, and certificates of deposit accounts. The company's consumer loans include home equity, short term, automobile, personal, and recreational vehicle loans, as well as home equity lines of credits; SBA, commercial real estate, equipment, home improvement, and other instalment loans; and non-profit loans, as well as working capital lines of credit. In addition, the company provides foreign currency exchange; reverse mortgage; online banking and bill pay; online reorder checks; wire transfer; and courier services, as well as credit card and ATM services. Further, it offers life, health, property, and casualty insurance products, as well as investment products, including annuities. University Bancorp, Inc. was founded in 1890 and is based in Ann Arbor, Michigan.

About Peoples Bancorp of North Carolina

(Get Free Report)

Peoples Bancorp of North Carolina, Inc. operates as the bank holding company for Peoples Bank that provides various banking products and services for individuals and small-to medium-sized businesses. It offers checking, savings, money market, and retirement accounts; certificates of deposits; and credit and debit cards. The company also originates commercial real estate loans, commercial loans, construction and land development loans, and residential mortgage loans; and individual taxpayer identification number mortgage loans, as well as agricultural loans. In addition, it provides investment counseling and non-deposit investment products, such as stocks, bonds, mutual funds, tax deferred annuities, and related brokerage services; and real estate appraisal and brokerage services. Further, the company operates as a clearing-house for the provision of appraisal services for community banks; and acquires, manages, and disposes real property, other collateral, and other assets obtained in the ordinary course of collecting debts. Peoples Bancorp of North Carolina, Inc. was founded in 1912 and is headquartered in Newton, North Carolina.