NSTS Bancorp (NASDAQ:NSTS – Get Free Report) and Franklin Financial Services (NASDAQ:FRAF – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.
Profitability
This table compares NSTS Bancorp and Franklin Financial Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NSTS Bancorp | -0.72% | -0.12% | -0.04% |
| Franklin Financial Services | 17.73% | 14.13% | 1.05% |
Insider and Institutional Ownership
23.7% of NSTS Bancorp shares are held by institutional investors. Comparatively, 24.8% of Franklin Financial Services shares are held by institutional investors. 8.3% of NSTS Bancorp shares are held by company insiders. Comparatively, 5.9% of Franklin Financial Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NSTS Bancorp | 1 | 0 | 0 | 0 | 1.00 |
| Franklin Financial Services | 0 | 1 | 1 | 0 | 2.50 |
Franklin Financial Services has a consensus target price of $64.00, indicating a potential upside of 0.60%. Given Franklin Financial Services’ stronger consensus rating and higher probable upside, analysts clearly believe Franklin Financial Services is more favorable than NSTS Bancorp.
Risk and Volatility
NSTS Bancorp has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500. Comparatively, Franklin Financial Services has a beta of -0.02, meaning that its stock price is 102% less volatile than the S&P 500.
Valuation & Earnings
This table compares NSTS Bancorp and Franklin Financial Services”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NSTS Bancorp | $13.27 million | 5.46 | -$390,000.00 | ($0.02) | -688.50 |
| Franklin Financial Services | $91.11 million | 3.14 | $21.23 million | $5.34 | 11.91 |
Franklin Financial Services has higher revenue and earnings than NSTS Bancorp. NSTS Bancorp is trading at a lower price-to-earnings ratio than Franklin Financial Services, indicating that it is currently the more affordable of the two stocks.
Summary
Franklin Financial Services beats NSTS Bancorp on 11 of the 14 factors compared between the two stocks.
About NSTS Bancorp
NSTS Bancorp, Inc. operates as a savings and loan holding company for North Shore Trust and Savings that provides banking products and services in Illinois. The company offers interest-bearing and noninterest-bearing checking, money market, savings, and time deposit accounts; and one- to four-family residential mortgage, multi-family and commercial real estate mortgage, construction, home equity, and consumer loans. It operates through full-service banking offices in Lake County, Illinois; and one loan production office in Chicago. The company was founded in 1921 and is headquartered in Waukegan, Illinois.
About Franklin Financial Services
Franklin Financial Services Corporation operates as the bank holding company for Farmers and Merchants Trust Company of Chambersburg that provides commercial, retail banking, and trust services to businesses, individuals, governmental entities, and non-profit organizations in Pennsylvania. It offers various deposit products, including checking, savings, money management, and time deposit accounts, as well as demand deposits. The company also provides commercial real estate, construction and land development, commercial and industrial, and residential mortgage loans, as well as installment and revolving loans; consumer loans comprising unsecured personal lines of credit and installment loans; and secured and unsecured commercial and industrial loans, including accounts receivable and inventory financing, and commercial equipment financing. In addition, it offers various investment and trust services comprising estate planning and administration, corporate and personal trust fund management, pension, and profit sharing and other employee benefit funds management services, and custodial services, as well as non-trust related investment services; sells mutual funds, annuities, and insurance products; and offers safe deposit, pension, and fiduciary services. Further, the company engages in non-bank investment activities, such as venture capital investments. The company was founded in 1906 and is headquartered in Chambersburg, Pennsylvania.
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