Head to Head Survey: NBT Bancorp (NASDAQ:NBTB) and Park National (NYSE:PRK)

Park National (NYSE:PRK) and NBT Bancorp (NASDAQ:NBTB) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Insider & Institutional Ownership

62.7% of Park National shares are held by institutional investors. Comparatively, 58.5% of NBT Bancorp shares are held by institutional investors. 2.7% of Park National shares are held by company insiders. Comparatively, 3.5% of NBT Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Park National and NBT Bancorp’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Park National	$564.30 million	3.86	$126.73 million	$7.80	17.30
NBT Bancorp	$664.97 million	2.61	$118.78 million	$2.66	13.81

Park National has higher earnings, but lower revenue than NBT Bancorp. NBT Bancorp is trading at a lower price-to-earnings ratio than Park National, indicating that it is currently the more affordable of the two stocks.

Dividends

Park National pays an annual dividend of $4.24 per share and has a dividend yield of 3.1%. NBT Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 3.5%. Park National pays out 54.4% of its earnings in the form of a dividend. NBT Bancorp pays out 48.1% 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. Park National has raised its dividend for 7 consecutive years and NBT Bancorp has raised its dividend for 3 consecutive years. NBT Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Park National and NBT Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Park National	22.46%	12.17%	1.35%
NBT Bancorp	17.86%	11.10%	1.14%

Analyst Ratings

This is a summary of recent ratings for Park National and NBT Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park National	0	1	0	0	2.00
NBT Bancorp	0	1	4	0	2.80

Park National presently has a consensus price target of $130.00, indicating a potential downside of 3.67%. NBT Bancorp has a consensus price target of $41.60, indicating a potential upside of 13.23%. Given NBT Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe NBT Bancorp is more favorable than Park National.

Volatility & Risk

Park National has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, NBT Bancorp has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500.

Summary

Park National beats NBT Bancorp on 10 of the 17 factors compared between the two stocks.

About Park National

Park National Corporation operates as the bank holding company for Park National Bank that provides commercial banking and trust services in small and medium population areas. The company offers deposits for demand, savings, and time accounts; trust and wealth management services; cash management services; safe deposit operations; electronic funds transfers; Internet and mobile banking solutions with bill pay service; credit cards; and various additional banking-related services. It also provides commercial loans, including financing for industrial and commercial properties, financing for equipment, inventory and accounts receivable, acquisition financing, and commercial leasing, as well as for consumer finance companies; commercial real estate loans comprising mortgage loans to developers and owners of commercial real estate; originates financing leases primarily for the purchase of commercial vehicles, operating/manufacturing equipment, and municipal vehicles/equipment; consumer loans, such as automobile loans; consumer finance services; home equity lines of credit; and residential real estate and construction loans, as well as installment loans and commercial loans. In addition, the company offers aircraft financing services; and ParkDirect, a personal banking application. Park National Corporation was founded in 1908 and is headquartered in Newark, Ohio.

About NBT Bancorp

NBT Bancorp Inc., a financial holding company, provides commercial banking, retail banking, and wealth management services. Its deposit products include demand deposit, savings, negotiable order of withdrawal, money market deposit, and certificate of deposit accounts. The company's loan portfolio comprises indirect and direct consumer, home equity, mortgages, business banking loans, and commercial loans; commercial and industrial, commercial real estate, agricultural, and commercial construction loans; and residential real estate loans. It also provides trust and investment services; financial planning and life insurance services; and retirement plan administration and recordkeeping services. In addition, the company offers insurance products comprising personal property and casualty, business liability, and commercial insurance, as well as other products and services through 24-hour online, mobile, and telephone channels that enable customers to check balances, make deposits, transfer funds, pay bills, access statements, apply for loans, and access various other products and services. Further, it operates as a property management and passive investment company, as well as investment advisor that provides investment management and financial consulting services. The company operates in upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, southern Maine, and central and northwestern Connecticut. NBT Bancorp Inc. was founded in 1856 and is headquartered in Norwich, New York.