Analyzing Peapack-Gladstone Financial (NASDAQ:PGC) & Oxford Bank (OTCMKTS:OXBC)

Oxford Bank (OTCMKTS:OXBC) and Peapack-Gladstone Financial (NASDAQ:PGC) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Risk and Volatility

Oxford Bank has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Peapack-Gladstone Financial has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Valuation and Earnings

This table compares Oxford Bank and Peapack-Gladstone Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oxford Bank	N/A	N/A	$12.06 million	$4.50	7.33
Peapack-Gladstone Financial	$377.59 million	1.53	$48.85 million	$1.81	18.10

Peapack-Gladstone Financial has higher revenue and earnings than Oxford Bank. Oxford Bank is trading at a lower price-to-earnings ratio than Peapack-Gladstone Financial, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for Oxford Bank and Peapack-Gladstone Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oxford Bank	0	0	0	0	N/A
Peapack-Gladstone Financial	0	0	2	0	3.00

Peapack-Gladstone Financial has a consensus price target of $33.50, suggesting a potential upside of 2.26%. Given Peapack-Gladstone Financial’s higher probable upside, analysts clearly believe Peapack-Gladstone Financial is more favorable than Oxford Bank.

Insider & Institutional Ownership

4.5% of Oxford Bank shares are owned by institutional investors. Comparatively, 72.8% of Peapack-Gladstone Financial shares are owned by institutional investors. 7.2% of Peapack-Gladstone Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Oxford Bank and Peapack-Gladstone Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oxford Bank	N/A	N/A	N/A
Peapack-Gladstone Financial	8.12%	5.60%	0.51%

Summary

Peapack-Gladstone Financial beats Oxford Bank on 11 of the 12 factors compared between the two stocks.

About Oxford Bank

Oxford Bank Corporation provides banking products and services to various customers in Michigan. Its deposit products include savings, checking, and individual retirement accounts, as well as certificates of deposit. The company's loan portfolio comprises home mortgage, home equity, auto, student, term, commercial real estate, and small business administration loans, as well as lines of credit. It also offers cash management, merchant card, remote deposit capture, payroll, overdraft protection, wire transfer, night depository, and notary services, as well as safe deposit box and interactive teller machine services; online, telephone, and mobile banking services; debit and credit cards; and insurance products. The company operates its branches in Clarkston, Davison, Dryden, Lake Orion, Ortonville, Oxford, and Oakland. Oxford Bank Corporation was founded in 1884 and is based in Oxford, Michigan.

About Peapack-Gladstone Financial

Peapack-Gladstone Financial Corporation operates as the bank holding company for Peapack-Gladstone Bank that provides private banking and wealth management services in the United States. The company operates in two segments, Banking and Peapack Private. It offers checking and savings accounts, money market and interest-bearing checking accounts, certificates of deposit, and individual retirement accounts. The company also provides working capital lines of credit, term loans for fixed asset acquisitions, commercial mortgages, multi-family mortgages, and other forms of asset-based financing services; and residential mortgages, home equity lines of credit, and other second mortgage loans. In addition, it offers corporate and industrial (C&I) and equipment finance, commercial real estate, multifamily, residential, and consumer lending activities; treasury management services; C&I advisory services; escrow management; deposit generation; investment management services; personal trust services, including services as executor, trustee, administrator, custodian, and guardian; and other financial planning, tax preparation, and advisory services. Further, the company provides telephone and Internet banking, merchant credit card, and customer support sales services. Its private banking clients include businesses, non-profits, and consumers; wealth management clients comprise individuals, families, foundations, endowments, trusts, and estates; and commercial loan clients include business owners, professionals, retailers, contractors, and real estate investors. The company operates its private banking locations in Bedminster, Morristown, Princeton, and Teaneck, New Jersey; and branches in Somerset, Morris, Hunterdon, and Union counties, as well as operates automated teller machines. Peapack-Gladstone Financial Corporation was founded in 1921 and is headquartered in Bedminster, New Jersey.