Flagstar Bancorp (NYSE:FBC) and PDL Community Bancorp (NASDAQ:PDLB) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.
Volatility & Risk
Flagstar Bancorp has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, PDL Community Bancorp has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.
Valuation and Earnings
This table compares Flagstar Bancorp and PDL Community Bancorp’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flagstar Bancorp | $1.12 billion | 1.93 | $187.00 million | $3.02 | 12.67 |
| PDL Community Bancorp | $49.09 million | 5.26 | $2.68 million | N/A | N/A |
Flagstar Bancorp has higher revenue and earnings than PDL Community Bancorp.
Profitability
This table compares Flagstar Bancorp and PDL Community Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Flagstar Bancorp | 16.36% | 11.20% | 0.91% |
| PDL Community Bancorp | 5.60% | 1.78% | 0.28% |
Institutional & Insider Ownership
97.6% of Flagstar Bancorp shares are held by institutional investors. Comparatively, 21.0% of PDL Community Bancorp shares are held by institutional investors. 49.9% of Flagstar Bancorp shares are held by company insiders. Comparatively, 1.2% of PDL Community Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Flagstar Bancorp and PDL Community Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flagstar Bancorp | 0 | 2 | 4 | 0 | 2.67 |
| PDL Community Bancorp | 0 | 0 | 0 | 0 | N/A |
Flagstar Bancorp presently has a consensus target price of $37.75, indicating a potential downside of 1.31%. Given Flagstar Bancorp’s higher possible upside, equities research analysts clearly believe Flagstar Bancorp is more favorable than PDL Community Bancorp.
Summary
Flagstar Bancorp beats PDL Community Bancorp on 10 of the 12 factors compared between the two stocks.
Flagstar Bancorp Company Profile
Flagstar Bancorp, Inc. operates as a savings and loan holding company for Flagstar Bank, FSB that provides commercial and consumer banking services to individuals and businesses in the United States. Its Community Banking segment offers various products, such as checking accounts, savings accounts, money market accounts, certificates of deposit, consumer and commercial loans, commercial real estate loans, equipment finance and leasing, home builder finance loans, and warehouse lines of credit. It also provides other financial services, including consumer and corporate card services, customized treasury management solutions, merchant services, and capital markets services, such as loan syndications, as well as wealth management products and services. This segment serves consumer, business, and mortgage lending customers through its branch banking, business and commercial banking, government banking, warehouse lending, and loans held-for-investment (LHFI) portfolio groups. The company's Mortgage Originations segment originates, acquires, and sells one-to-four family residential mortgage loans through mortgage branches, call centers, the Internet, and third party counterparties. Its Mortgage Servicing segment offers services and subservices mortgage loans; and the servicing of residential mortgages for its LHFI portfolio, as well as noninterest-bearing escrow services. As of December 31, 2018, the company provided banking services through 160 full service banking branches; and home loans through a wholesale network of brokers and correspondents in 50 states, as well as 75 retail locations in 24 states. Flagstar Bancorp, Inc. was founded in 1987 and is headquartered in Troy, Michigan.
PDL Community Bancorp Company Profile
PDL Community Bancorp provides various banking products and services primarily in the New York City metropolitan area. The company offers a range of deposit accounts, including demand, savings, and money market accounts, as well as certificates of deposit accounts; and individual retirement accounts. It also provides mortgage loans consisting of one-to-four family real estate loans, including residential investor-owned and owner-occupied, multifamily residential, and nonresidential property loans, as well as construction and land loans; commercial business and consumer loans; commercial and industrial loans; and lines of credit. In addition, the company invests in debt securities. It operates a network of 13 banking offices, which include 4 branches in Bronx, 2 branches in Manhattan, 3 branches in Queens, and 3 branches in Brooklyn, New York; and 1 branch in Union City, New Jersey. The company was formerly known as Ponce De Leon Federal Bank and changed its name to PDL Community Bancorp in September 2017. The company was founded in 1960 and is headquartered in Bronx, New York. PDL Community Bancorp is a subsidiary of Ponce Bank Mutual Holding Company.