Critical Review: ABN AMRO Bank (OTCMKTS:AAVMY) & Broadway Financial (NASDAQ:BYFC)

ABN AMRO Bank (OTCMKTS:AAVMY) and Broadway Financial (NASDAQ:BYFC) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Profitability

This table compares ABN AMRO Bank and Broadway Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ABN AMRO Bank	14.22%	9.16%	0.57%
Broadway Financial	-29.36%	3.49%	0.28%

Analyst Ratings

This is a breakdown of recent ratings and price targets for ABN AMRO Bank and Broadway Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ABN AMRO Bank	0	1	6	1	3.00
Broadway Financial	1	0	0	0	1.00

Insider & Institutional Ownership

12.1% of Broadway Financial shares are owned by institutional investors. 3.0% of Broadway Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares ABN AMRO Bank and Broadway Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ABN AMRO Bank	$19.04 billion	2.12	$2.30 billion	$3.24	15.20
Broadway Financial	$38.54 million	2.86	-$24.80 million	($2.71)	-4.38

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

Summary

ABN AMRO Bank beats Broadway Financial on 10 of the 13 factors compared between the two stocks.

About ABN AMRO Bank

ABN AMRO Bank N.V. provides various banking products and financial services to retail, private, and business clients in the Netherlands and internationally. It operates through three segments: Personal & Business Banking, Wealth Management, and Corporate Banking. The company provides savings and deposits products; investment and insurance products; and consumer, personal, car, and home improvement loan. It also issues, promotes, manages, and processes credit cards; trade finance, international payments, and treasury management; corporate finance and equity capital market; and revolving credit card facilities and pension schemes, as well as consumer credit and mortgages; and life and non-life insurance products. In addition, it offers asset-based solutions, including working capital solutions, equipment leases and loans, and vendor lease services; private banking and wealth-management-related services; and derivatives and equity clearing services. The company was incorporated in 2009 and is headquartered in Amsterdam, the Netherlands. ABN AMRO Bank N.V. operates as a subsidiary of Stichting Administratiekantoor Continuïteit Abn Amro Bank.

About Broadway Financial

Broadway Financial Corporation operates as the holding company for City First Bank, National Association that provides various banking products and services in the United States. It accepts various deposit accounts, including savings accounts, checking accounts, interest checking accounts, money market accounts, and fixed-term certificates of deposit. The company also offers mortgage loans, which are secured by multi-family residential properties; single family residential properties; and commercial real estate, including charter schools, community facilities, and churches, as well as commercial business, construction, and consumer loans. In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments. The company was founded in 1946 and is headquartered in Los Angeles, California.