Analyzing Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL) and Northpointe Bancshares (NYSE:NPB)

Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL) and Northpointe Bancshares (NYSE:NPB) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Home Federal Bancorp, Inc. of Louisiana and Northpointe Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Home Federal Bancorp, Inc. of Louisiana	0	1	0	0	2.00
Northpointe Bancshares	1	2	1	0	2.00

Northpointe Bancshares has a consensus target price of $20.50, indicating a potential upside of 10.01%. Given Northpointe Bancshares’ higher possible upside, analysts plainly believe Northpointe Bancshares is more favorable than Home Federal Bancorp, Inc. of Louisiana.

Earnings and Valuation

This table compares Home Federal Bancorp, Inc. of Louisiana and Northpointe Bancshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Home Federal Bancorp, Inc. of Louisiana	$32.47 million	2.07	$3.89 million	$1.92	11.46
Northpointe Bancshares	$471.18 million	1.37	$83.41 million	$2.22	8.39

Northpointe Bancshares has higher revenue and earnings than Home Federal Bancorp, Inc. of Louisiana. Northpointe Bancshares is trading at a lower price-to-earnings ratio than Home Federal Bancorp, Inc. of Louisiana, indicating that it is currently the more affordable of the two stocks.

Dividends

Home Federal Bancorp, Inc. of Louisiana pays an annual dividend of $0.54 per share and has a dividend yield of 2.5%. Northpointe Bancshares pays an annual dividend of $0.10 per share and has a dividend yield of 0.5%. Home Federal Bancorp, Inc. of Louisiana pays out 28.1% of its earnings in the form of a dividend. Northpointe Bancshares pays out 4.5% 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. Home Federal Bancorp, Inc. of Louisiana has increased its dividend for 11 consecutive years. Home Federal Bancorp, Inc. of Louisiana is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

21.1% of Home Federal Bancorp, Inc. of Louisiana shares are owned by institutional investors. 19.4% of Home Federal Bancorp, Inc. of Louisiana shares are owned by company insiders. Comparatively, 18.3% of Northpointe Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Home Federal Bancorp, Inc. of Louisiana and Northpointe Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Home Federal Bancorp, Inc. of Louisiana	17.27%	10.42%	0.95%
Northpointe Bancshares	17.92%	14.80%	1.28%

Summary

Northpointe Bancshares beats Home Federal Bancorp, Inc. of Louisiana on 9 of the 15 factors compared between the two stocks.

About Home Federal Bancorp, Inc. of Louisiana

Home Federal Bancorp, Inc. of Louisiana operates as the holding company for Home Federal Bank that provides various financial services to individuals, corporate entities, and other organizations. The company accepts various deposits, such as passbook savings, certificates of deposit, and demand deposit accounts. Its loan products include one-to-four family residential real estate loans; commercial real estate secured loans; multi-family residential loans; commercial business loans; land loans; construction loans; home equity and second mortgage loans; lines of credit; and consumer non-real estate loans, including loans secured by deposit accounts, automobile loans, overdrafts, and other unsecured loans. The company operates through branches in Shreveport, Bossier City, Minden, and Benton, Louisiana. The company was founded in 1924 and is based in Shreveport, Louisiana.

About Northpointe Bancshares

Northpointe Bancshares, Inc. operates as a bank holding company. It offers a nationwide mortgage purchase program, residential mortgage loans, digital deposit banking to retail customers and custodial deposit services. The company was founded by Charles A. Williams in 1998 and is headquartered in Grand Rapids, MI.