Princeton Bancorp (NASDAQ:BPRN) vs. Dundee Precious Metals (OTCMKTS:DPMLF) Financial Analysis

Princeton Bancorp (NASDAQ:BPRNGet Rating) and Dundee Precious Metals (OTCMKTS:DPMLFGet Rating) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Insider & Institutional Ownership

37.5% of Princeton Bancorp shares are held by institutional investors. Comparatively, 0.0% of Dundee Precious Metals shares are held by institutional investors. 21.8% of Princeton Bancorp shares are held by insiders. Comparatively, 0.3% of Dundee Precious Metals shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Princeton Bancorp and Dundee Precious Metals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Princeton Bancorp 0 3 0 0 2.00
Dundee Precious Metals 0 0 4 0 3.00

Princeton Bancorp currently has a consensus price target of $30.83, suggesting a potential downside of 3.19%. Dundee Precious Metals has a consensus price target of $10.54, suggesting a potential upside of 40.18%. Given Dundee Precious Metals’ stronger consensus rating and higher possible upside, analysts plainly believe Dundee Precious Metals is more favorable than Princeton Bancorp.

Dividends

Princeton Bancorp pays an annual dividend of $1.20 per share and has a dividend yield of 3.8%. Dundee Precious Metals pays an annual dividend of $0.16 per share and has a dividend yield of 2.1%. Princeton Bancorp pays out 28.9% of its earnings in the form of a dividend. Dundee Precious Metals pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Princeton Bancorp has raised its dividend for 3 consecutive years. Princeton Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Princeton Bancorp has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500. Comparatively, Dundee Precious Metals has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Earnings & Valuation

This table compares Princeton Bancorp and Dundee Precious Metals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Princeton Bancorp $78.94 million 2.53 $25.98 million $4.15 7.67
Dundee Precious Metals $569.79 million 2.51 $35.92 million $0.20 37.60

Dundee Precious Metals has higher revenue and earnings than Princeton Bancorp. Princeton Bancorp is trading at a lower price-to-earnings ratio than Dundee Precious Metals, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Princeton Bancorp and Dundee Precious Metals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Princeton Bancorp N/A N/A N/A
Dundee Precious Metals 6.30% 12.88% 11.14%

Summary

Dundee Precious Metals beats Princeton Bancorp on 10 of the 17 factors compared between the two stocks.

About Princeton Bancorp

(Get Rating)

Princeton Bancorp, Inc. operates as a bank holding company. It is a full-service financial institution that provides business and personal banking. It offers traditional retail banking services, one-to-four-family residential mortgage loans, multi-family and commercial mortgage loans, construction loans, commercial business loans, and consumer loans, including home equity loans and lines of credit. The company was founded in 2007 and is headquartered in Princeton, NJ.

About Dundee Precious Metals

(Get Rating)

Dundee Precious Metals, Inc. is an international gold mining company. engages in the acquisition of mineral properties, exploration, development, and processing of metals. It operates through the following segments: Chelopech, Ada Tepe, Tsumeb, and Corporate and Other. The Chelopech segment covers gold production. The Ada Tepe segment engages in the production of gold in Bulgaria. The Tsumeb segment represents the smelter operation. The Corporate and Other segment comprises of general and administrative costs, corporate social responsibility expenses, exploration and development projects, and other income and cost items. The company was founded by Nathan Edward Goodman on September 2, 1983 and is headquartered in Toronto, Canada.

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