Critical Contrast: Northrim BanCorp (NASDAQ:NRIM) versus Equitable Financial (OTCMKTS:EQFN)

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northrim BanCorp	17.79%	13.31%	1.15%
Equitable Financial	8.66%	5.85%	0.54%

Valuation & Earnings

This table compares Northrim BanCorp and Equitable Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northrim BanCorp	$158.33 million	2.97	$25.39 million	$5.86	14.60
Equitable Financial	$31.33 million	1.04	$2.71 million	$1.02	12.30

Northrim BanCorp has higher revenue and earnings than Equitable Financial. Equitable Financial is trading at a lower price-to-earnings ratio than Northrim BanCorp, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

66.0% of Northrim BanCorp shares are owned by institutional investors. Comparatively, 7.2% of Equitable Financial shares are owned by institutional investors. 4.1% of Northrim BanCorp shares are owned by insiders. Comparatively, 11.3% of Equitable Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Northrim BanCorp has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Equitable Financial has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.

Summary

Northrim BanCorp beats Equitable Financial on 10 of the 11 factors compared between the two stocks.

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. It operates through two segments, Community Banking and Home Mortgage Lending. The company offers noninterest-bearing checking accounts and interest-bearing time deposits, checking and savings accounts, individual retirement and money market deposit accounts, certificates of deposit, and business sweep accounts. It also provides short and medium-term commercial loans, commercial credit lines, construction and real estate loans, and consumer loans, as well as short-term working capital. In addition, the company offers other services comprising consumer and business online banking, mobile app, and mobile deposits; and debit and credit cards. Further, it provides mobile web and app banking, consumer online account opening, personal finance, online documents, consumer debit cards, business debit cards, my rewards for consumer debit cards, retail lockbox, card control, corporate purchase cards, integrated payables, home equity advantage access cards, telebanking, and automated teller services. Additionally, the company offers personalized checks at account opening, overdraft protection from a savings account, commercial drive-up banking, automatic transfer and payment, People Pay, external transfer, Bill Pay, wire transfer, direct payroll deposit, electronic tax payment, Automated Clearing House origination and receipt, remote deposit capture, account reconciliation and positive pay, merchant, cash management, annuity, and long-term investment portfolio products and services. It also provides investment advisory, trust, wealth management, factoring, and mortgage services. The company was founded in 1990 and is headquartered in Anchorage, Alaska.

About Equitable Financial

Equitable Financial Corp. operates as the holding company for Equitable Bank that provides various banking products and services in Nebraska, the United States. The company offers checking and savings accounts; recorder checks; online and mobile banking; remote deposit capture; voice banking; credit card processing; debit and gift cards; and safe deposit boxes. It also provides home, home equity, auto, personal, real estate and construction, operating lines of credit, small business administration, and agricultural loans, as well as equipment financing. In addition, the company offers foreign currency and exchanges; financial planning; wealth management; investment advisory; and retirement services. It operates through branches located in Grand Island, North Platte, and Omaha. The company was founded in 1882 and is headquartered in Grand Island, Nebraska.