Head-To-Head Review: Northrim BanCorp (NASDAQ:NRIM) and Oconee Federal Financial (NASDAQ:OFED)

Oconee Federal Financial (NASDAQ:OFED) and Northrim BanCorp (NASDAQ:NRIM) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Earnings & Valuation

This table compares Oconee Federal Financial and Northrim BanCorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oconee Federal Financial $18.41 million 7.18 $3.03 million N/A N/A
Northrim BanCorp $96.34 million 2.41 $20.00 million $2.86 11.85

Northrim BanCorp has higher revenue and earnings than Oconee Federal Financial.

Analyst Ratings

This is a summary of recent ratings and target prices for Oconee Federal Financial and Northrim BanCorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oconee Federal Financial 0 0 0 0 N/A
Northrim BanCorp 0 0 0 0 N/A

Risk and Volatility

Oconee Federal Financial has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500. Comparatively, Northrim BanCorp has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Dividends

Oconee Federal Financial pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Northrim BanCorp pays an annual dividend of $1.20 per share and has a dividend yield of 3.5%. Northrim BanCorp pays out 42.0% of its earnings in the form of a dividend. Northrim BanCorp has raised its dividend for 9 consecutive years. Northrim BanCorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Oconee Federal Financial and Northrim BanCorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oconee Federal Financial 18.60% 4.30% 0.73%
Northrim BanCorp 20.56% 9.91% 1.35%

Insider & Institutional Ownership

4.1% of Oconee Federal Financial shares are held by institutional investors. Comparatively, 71.8% of Northrim BanCorp shares are held by institutional investors. 5.2% of Oconee Federal Financial shares are held by insiders. Comparatively, 2.2% of Northrim BanCorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Northrim BanCorp beats Oconee Federal Financial on 9 of the 13 factors compared between the two stocks.

About Oconee Federal Financial

Oconee Federal Financial Corp. operates as a holding company for Oconee Federal Savings and Loan Association that provides various banking products and services in the Oconee County area of northwestern South Carolina and the northeast area of Georgia. The company's deposit products include demand, NOW, money market, savings, certificates of deposit, and individual retirement accounts. Its loan portfolio comprises one-to-four family residential mortgage loans; home equity loans and lines of credit; nonresidential real estate loans; construction and land loans; commercial and industrial loans; agricultural loans; and consumer loans. Oconee Federal Financial Corp. operates through its executive office and seven branch offices located in Oconee County, South Carolina; Stephens County, Georgia; and Rabun County, Georgia. The company was founded in 1924 and is based in Seneca, South Carolina. Oconee Federal Financial Corp. is a subsidiary of Oconee Federal, MHC.

About Northrim BanCorp

Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals in Alaska. It operates in two segments, Community Banking and Home Mortgage Lending. The company offers noninterest-bearing checking accounts and interest-bearing time deposits, checking and savings accounts, money market deposit accounts, certificates of deposit, and courier noncash deposits. It also provides family residential mortgages; commercial loans, such as secured and unsecured loans for working capital and expansion; commercial real estate loans; construction loans for commercial real estate projects, and land development and residential subdivision construction loans; and loans for automobiles, recreational vehicles, boats, and other consumer purchases, as well as home equity and commercial credit lines, and factoring services. In addition, the company offers other services that include consumer online banking, mobile app and mobile deposit, mobile Web and text banking, business online banking, personal finance, online documents, consumer and business debit cards, home equity advantage access cards, and telebanking and automated teller services. Further, it provides personalized checks, overdraft protection for savings accounts, commercial drive-up banking services, automatic transfers and payments, People Pay services, external and wire transfers, bill pay services, direct payroll deposits, electronic tax payments, automated clearing house origination and receipt services, remote deposit capture services, account reconciliation and positive pay services, merchant and cash management programs, annuity products, and long term investment portfolios. As of January 28, 2019, the company operated 15 branches in Anchorage, the Matanuska Valley, Juneau, Fairbanks, Ketchikan, and Sitka. Northrim BanCorp, Inc. was founded in 1990 and is headquartered in Anchorage, Alaska.

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