Reviewing Burke & Herbert Financial Services (NASDAQ:BHRB) & Greystone Housing Impact Investors (NYSE:GHI)

Burke & Herbert Financial Services (NASDAQ:BHRB) and Greystone Housing Impact Investors (NYSE:GHI) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Burke & Herbert Financial Services and Greystone Housing Impact Investors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Burke & Herbert Financial Services	0	3	2	0	2.40
Greystone Housing Impact Investors	1	0	4	0	2.60

Burke & Herbert Financial Services presently has a consensus target price of $71.50, suggesting a potential upside of 9.19%. Greystone Housing Impact Investors has a consensus target price of $13.00, suggesting a potential upside of 64.68%. Given Greystone Housing Impact Investors’ stronger consensus rating and higher probable upside, analysts clearly believe Greystone Housing Impact Investors is more favorable than Burke & Herbert Financial Services.

Valuation and Earnings

This table compares Burke & Herbert Financial Services and Greystone Housing Impact Investors”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Burke & Herbert Financial Services	$491.11 million	2.00	$117.32 million	$7.72	8.48
Greystone Housing Impact Investors	$36.64 million	5.08	$21.32 million	$0.18	43.86

Burke & Herbert Financial Services has higher revenue and earnings than Greystone Housing Impact Investors. Burke & Herbert Financial Services is trading at a lower price-to-earnings ratio than Greystone Housing Impact Investors, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Burke & Herbert Financial Services and Greystone Housing Impact Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Burke & Herbert Financial Services	23.89%	15.11%	1.48%
Greystone Housing Impact Investors	8.11%	8.07%	1.55%

Volatility and Risk

Burke & Herbert Financial Services has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Greystone Housing Impact Investors has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Institutional and Insider Ownership

9.0% of Greystone Housing Impact Investors shares are owned by institutional investors. 10.9% of Burke & Herbert Financial Services shares are owned by company insiders. Comparatively, 1.8% of Greystone Housing Impact Investors shares are owned by company 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.

Dividends

Burke & Herbert Financial Services pays an annual dividend of $2.20 per share and has a dividend yield of 3.4%. Greystone Housing Impact Investors pays an annual dividend of $1.00 per share and has a dividend yield of 12.7%. Burke & Herbert Financial Services pays out 28.5% of its earnings in the form of a dividend. Greystone Housing Impact Investors pays out 555.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Burke & Herbert Financial Services has raised its dividend for 1 consecutive years and Greystone Housing Impact Investors has raised its dividend for 4 consecutive years. Greystone Housing Impact Investors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Greystone Housing Impact Investors beats Burke & Herbert Financial Services on 9 of the 17 factors compared between the two stocks.

About Burke & Herbert Financial Services

Burke Herbert Financial Services Corp. is a bank holding company, which engages in the provision of banking products and financial services to small to medium-sized businesses, their owners and employees, professional corporations, non-profits, and individuals. It operates through the following loan portfolio segments: Commercial Real Estate, Owner-Occupied Commercial Real Estate, Acquisition, Construction, and Development, Commercial and Industrial, Single Family Residential (1-4 Units), and Consumer Non-Real Estate and Other. The Commercial Real Estate segment includes leasing of the real estate collateral or income generated from the sale of the collateral. The Owner-Occupied Commercial Real Estate segment focuses on the operations of the business that occupies the property and the value of the collateral. The Acquisition, Construction, and Development segment offers creditworthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral. The Commercial and Industrial segment is involved in the operations of the business and the value of the collateral. The Single Family Residential (1-4 Units) segment provides loans for investment purpose carry risk associated with the continued creditworthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. The Consumer Non-Real Estate and Other segment covers loans carry risk associated with the creditworthiness of the borrower and the value of the collateral. The company was founded on September 14, 2022 and is headquartered in Alexandria, VA.

About Greystone Housing Impact Investors

Greystone Housing Impact Investors LP acquires, holds, sells, and deals in a portfolio of mortgage revenue bonds (MRBs) that are issued to provide construction and/or permanent financing for multifamily, student, and senior citizen housing; skilled nursing properties; and commercial properties in the United States. The company operates in four segments: Affordable Multifamily MRB Investments; Seniors and Skilled Nursing MRB Investments; MF Properties; Market-Rate Joint Venture Investments. It also invests in governmental issuer loans. The company was formerly known as America First Multifamily Investors, L.P. and changed its name to Greystone Housing Impact Investors LP in December 2022. Greystone Housing Impact Investors LP was incorporated in 1998 and is based in Omaha, Nebraska.