PFS vs VLY: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of September 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. PFS and VLY share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined PFS and VLY exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Provident Financial Services, Inc. (NYSE: PFS) is the holding company for Provident Bank, a community and commercial bank founded in 1839 and headquartered in Iselin, New Jersey. Its core business is gathering deposits and making loans, with a heavy tilt toward commercial real estate and commercial and industrial lending across New Jersey, southern New York, and eastern Pennsylvania. Beyond spread banking, Provident runs meaningful fee businesses: Provident Protection Plus (insurance agency) and Beacon Trust (wealth and fiduciary services). The May 2024 all-stock merger with Lakeland Bancorp roughly doubled the balance sheet to about $24 billion in assets, $19 billion in loans, and $19 billion in deposits, making PFS one of the larger New Jersey-based banks.

Full PFS guide

Valley National Bancorp is the holding company for Valley National Bank, a regional lender headquartered in the New York metro area with operations concentrated in New Jersey, New York, Florida, Alabama and California. At December 31, 2025 it held roughly $64.1 billion in total assets, about $49.6 billion in net loans and $52.2 billion in deposits, and it makes money the traditional way, by taking deposits and lending against commercial real estate, commercial and industrial borrowers, and consumers, while collecting fee income on the side. Commercial real estate has long been its signature exposure, at about 58 percent of total loans, which is high versus most peers and is the single biggest factor investors watch.

Full VLY guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• PFS drivers: Lakeland merger scale and cost synergies; Net interest margin and deposit costs.
• VLY drivers: Net interest margin recovery; Deposit growth and funding mix.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Commercial real estate concentration is the most watched risk, since a large share of the loan book is CRE and office and multifamily exposure could pressure credit costs if property values or occupancy weaken. For VLY, valley's commercial real estate concentration, near 58 percent of loans and among the highest of comparable regional banks, is the central risk: a downturn in office, multifamily or construction values could drive higher provisions and charge-offs.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick PFS if you believe its drivers more; VLY if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the PFS and VLY guides.

PFS. PFS trades at a low-double-digit trailing earnings multiple and around tangible book value, a valuation typical of a slow-growth regional bank. Quarterly net income has run in the roughly $75 million to $85 million range following the Lakeland deal, with recent quarters showing pre-provision net revenue growth and record non-interest income. Figures are approximate and move with interest rates, loan growth, and credit provisions.

VLY. VLY trades at a low double-digit trailing price to earnings (around 12) and a forward multiple near 10, a discount that reflects market caution on its commercial real estate book. Total assets were about $64.1 billion with roughly $50.8 billion in loans and $52.9 billion in deposits as of Q1 2026. The bank pays a dividend that has historically produced a mid-single-digit yield.

Headline figures (approximate, JULY 2026): PFS shows market cap ~$3.1B, total assets ~$24B, revenue (ttm, net interest + fees) ~$900M, eps (ttm) ~$2.35; VLY shows market cap ~$8 billion, revenue (q1 2026) ~$540 million, net income (q1 2026) ~$164 million, diluted eps (q1 2026) ~$0.28.

PFS and VLY are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined PFS and VLY exposure against your real portfolio. It is not an investment adviser.