Analyzing Northeast Bancorp (NASDAQ:NBN) and FFW (OTCMKTS:FFWC)

Northeast Bancorp (NASDAQ:NBN) and FFW (OTCMKTS:FFWC) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.

Dividends

Northeast Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. FFW pays an annual dividend of $1.24 per share and has a dividend yield of 2.4%. Northeast Bancorp pays out 0.3% of its earnings in the form of a dividend. FFW pays out 21.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Northeast Bancorp and FFW, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northeast Bancorp	0	1	2	0	2.67
FFW	0	0	0	0	0.00

Northeast Bancorp presently has a consensus price target of $130.50, suggesting a potential upside of 0.45%. Given Northeast Bancorp’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Northeast Bancorp is more favorable than FFW.

Risk & Volatility

Northeast Bancorp has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, FFW has a beta of -0.12, suggesting that its stock price is 112% less volatile than the S&P 500.

Valuation and Earnings

This table compares Northeast Bancorp and FFW”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northeast Bancorp	$221.84 million	4.81	$83.44 million	$11.67	11.13
FFW	$32.63 million	1.71	$5.54 million	$5.79	8.85

Northeast Bancorp has higher revenue and earnings than FFW. FFW is trading at a lower price-to-earnings ratio than Northeast Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northeast Bancorp	25.96%	18.63%	2.13%
FFW	18.80%	N/A	N/A

Summary

Northeast Bancorp beats FFW on 13 of the 14 factors compared between the two stocks.

About Northeast Bancorp

Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking 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 mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. Further, it provides various services, such as money market, merchant, and payroll and HR. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.

About FFW

FFW Corporation operates as the bank holding company for Crossroads Bank that provides various banking products and services. The company offers checking and savings accounts, overdraft protection, consumer credit cards, and reorder checks. Its loan products include home equity, auto, RV, boat, motorcycle, and personal loans; mortgage loans; agricultural loans; commercial real estate equipment financing; revolving lines of credit and standby letters of credit; and equipment leasing, as well as commercial lending services. The company offers insurance products, such as auto, home and property, business, life and health, and specialty insurance; investment products and securities; and digital banking services. FFW Corporation was founded in 1920 and is based in Wabash, Indiana.