Head to Head Analysis: Franklin Financial Services (NASDAQ:FRAF) vs. Peoples Financial (OTCMKTS:PFBX)

Franklin Financial Services (NASDAQ:FRAFGet Free Report) and Peoples Financial (OTCMKTS:PFBXGet Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Dividends

Franklin Financial Services pays an annual dividend of $1.28 per share and has a dividend yield of 4.8%. Peoples Financial pays an annual dividend of $0.36 per share and has a dividend yield of 2.2%. Franklin Financial Services pays out 41.3% of its earnings in the form of a dividend. Peoples Financial pays out 18.4% 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.

Insider and Institutional Ownership

22.7% of Franklin Financial Services shares are held by institutional investors. Comparatively, 13.2% of Peoples Financial shares are held by institutional investors. 6.3% of Franklin Financial Services shares are held by company insiders. Comparatively, 28.1% of Peoples Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Franklin Financial Services and Peoples Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Franklin Financial Services $91.61 million 1.27 $13.60 million $3.10 8.55
Peoples Financial $30.60 million 2.44 $9.17 million $1.96 8.19

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

Risk & Volatility

Franklin Financial Services has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Peoples Financial has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.

Profitability

This table compares Franklin Financial Services and Peoples Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Franklin Financial Services 14.84% 11.10% 0.76%
Peoples Financial 32.60% 14.75% 1.02%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Franklin Financial Services and Peoples Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Franklin Financial Services 0 0 0 0 N/A
Peoples Financial 0 0 0 0 N/A

About Franklin Financial Services

(Get Free Report)

Franklin Financial Services Corporation operates as the bank holding company for Farmers and Merchants Trust Company of Chambersburg that provides commercial, retail banking, and trust services to small and medium-sized businesses, individuals, governmental entities, and non-profit organizations in Pennsylvania. It offers various deposit products, including checking, savings, money management, and time deposit accounts, as well as demand deposits. The company also provides commercial real estate, construction and land development, agricultural, commercial and industrial, and residential mortgage loans, as well as installment and revolving loans to consumers; and secured and unsecured commercial and industrial loans, including accounts receivable and inventory financing, and commercial equipment financing. In addition, it offers various investment and trust services comprising estate planning and administration, corporate and personal trust fund management, pension, and profit sharing and other employee benefit funds management services, as well as custodial services; sells mutual funds, annuities, and insurance products; and offers safe deposit facilities and fiduciary services. Further, the company, through its subsidiary, Franklin Future Fund Inc., operates as a non-bank investment company that makes venture capital investments. The company was founded in 1906 and is headquartered in Chambersburg, Pennsylvania.

About Peoples Financial

(Get Free Report)

Peoples Financial Corporation operates as the bank holding company for The Peoples Bank that provides banking, financial, and trust services to government entities, individuals, and small and commercial businesses in Mississippi. It accepts various deposits, such as interest and non-interest-bearing checking accounts, savings accounts, certificates of deposit, and individual retirement accounts (IRAs). The company also offers business, commercial, real estate, construction, personal, and installment loans; and personal trust, agencies, and estate services, including living and testamentary trusts, executorships, guardianships, and conservatorships. In addition, it provides self-directed IRAs; and escrow management, stock transfer, and bond paying agency accounts to corporate customers. Further, the company offers various other services consisting of safe deposit box rental, wire transfer, night drop facilities, collection, cash management, and Internet banking services. The company was founded in 1896 and is headquartered in Biloxi, Mississippi.

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