Comparing Northeast Bancorp (NASDAQ:NBN) & First Financial Northwest (NASDAQ:FFNW)

First Financial Northwest (NASDAQ:FFNW) and Northeast Bancorp (NASDAQ:NBN) 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, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Valuation and Earnings

This table compares First Financial Northwest and Northeast Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Financial Northwest $58.79 million 2.52 $14.90 million $1.43 9.99
Northeast Bancorp $87.95 million 2.31 $13.88 million N/A N/A

First Financial Northwest has higher earnings, but lower revenue than Northeast Bancorp.

Volatility & Risk

First Financial Northwest has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500. Comparatively, Northeast Bancorp has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.

Dividends

First Financial Northwest pays an annual dividend of $0.36 per share and has a dividend yield of 2.5%. Northeast Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. First Financial Northwest pays out 25.2% of its earnings in the form of a dividend.

Profitability

This table compares First Financial Northwest and Northeast Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Financial Northwest 16.78% 6.65% 0.80%
Northeast Bancorp 15.79% 13.41% 1.64%

Insider & Institutional Ownership

44.9% of First Financial Northwest shares are owned by institutional investors. Comparatively, 63.9% of Northeast Bancorp shares are owned by institutional investors. 6.9% of First Financial Northwest shares are owned by insiders. Comparatively, 14.2% of Northeast Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for First Financial Northwest and Northeast Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Financial Northwest 0 0 1 0 3.00
Northeast Bancorp 0 0 0 0 N/A

Summary

Northeast Bancorp beats First Financial Northwest on 8 of the 13 factors compared between the two stocks.

First Financial Northwest Company Profile

First Financial Northwest, Inc. operates as the holding company for First Financial Northwest Bank that provides commercial banking services in Washington. The company offers a range of deposit products, including noninterest bearing accounts, interest-bearing demand accounts, money market deposit accounts, statement savings accounts, and certificates of deposit. Its loan products comprise one-to-four family residential loans; multifamily and commercial real estate loans; construction/land loans for the construction of single-family residences, condominiums, townhouses, multifamily properties, and residential developments; business loans; and consumer loans, such as home equity loans and savings account loans. The company primarily serves the greater Puget Sound region of King, as well as Pierce, Snohomish, and Kitsap counties, Washington through its full-service banking office in Renton, Washington; and nine additional branches in King and Snohomish counties, Washington. First Financial Northwest, Inc. was founded in 1923 and is based in Renton, Washington.

Northeast Bancorp Company Profile

Northeast Bancorp operates as the bank holding company for Northeast Bank that provides banking products and services to individual and corporate customers in the United States. The company's deposit products include noninterest-bearing demand deposit, savings, NOW, and money market accounts, as well as certificate of deposit accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising automobile, boat, and recreational vehicle loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, and remote deposit capture services, as well as debit card, ATM, electronic transfer, and check services. As of July 30, 2018, it provided personal and business banking services through 10 branches in south-central and western Maine. The company was formerly known as Bethel Bancorp, Inc. and changed its name to Northeast Bancorp in 1996. Northeast Bancorp was founded in 1872 and is headquartered in Lewiston, Maine.

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