Head-To-Head Contrast: Signature Bank (NASDAQ:SBNY) versus OFG Bancorp (NYSE:OFG)

Signature Bank (NASDAQ:SBNY) and OFG Bancorp (NYSE:OFG) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Signature Bank and OFG Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Signature Bank	N/A	N/A	N/A
OFG Bancorp	22.71%	15.80%	1.75%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Signature Bank and OFG Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Signature Bank	0	0	0	0	0.00
OFG Bancorp	0	0	4	0	3.00

OFG Bancorp has a consensus price target of $50.25, indicating a potential upside of 20.38%. Given OFG Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe OFG Bancorp is more favorable than Signature Bank.

Valuation and Earnings

This table compares Signature Bank and OFG Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Signature Bank	$3.71 billion	N/A	$1.34 billion	N/A	N/A
OFG Bancorp	$873.53 million	2.19	$198.17 million	$4.22	9.89

Signature Bank has higher revenue and earnings than OFG Bancorp.

Institutional and Insider Ownership

11.1% of Signature Bank shares are owned by institutional investors. Comparatively, 92.7% of OFG Bancorp shares are owned by institutional investors. 1.5% of Signature Bank shares are owned by insiders. Comparatively, 3.1% of OFG Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Signature Bank has a beta of 9.4, meaning that its share price is 840% more volatile than the S&P 500. Comparatively, OFG Bancorp has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Summary

OFG Bancorp beats Signature Bank on 8 of the 11 factors compared between the two stocks.

About Signature Bank

As of March 12, 2023, Signature Bank went out of business. Previously, the company provided digital assets banking services and comprised of certain loan portfolios. The company was incorporated in 2000 and is based in New York, New York. Signature Bank now trades on OTCPK.

About OFG Bancorp

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, and individual retirement accounts; certificate of deposits, as well as time deposit products; commercial, consumer, auto leasing, and mortgage lending services; credit cards; cash management; financial planning and insurance services; and corporate and individual trust, and retirement services. In addition, it provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. Further, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; and various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments. Additionally, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company provides investment brokerage, transactional, international trade financing, residential mortgage, and consumer finance services. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.