Analyzing Eagle Bancorp Montana (NASDAQ:EBMT) and First Northwest Bancorp (NASDAQ:FNWB)

First Northwest Bancorp (NASDAQ:FNWB) and Eagle Bancorp Montana (NASDAQ:EBMT) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Risk & Volatility

First Northwest Bancorp has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Eagle Bancorp Montana has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Valuation & Earnings

This table compares First Northwest Bancorp and Eagle Bancorp Montana”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Northwest Bancorp	$118.64 million	0.77	-$4.19 million	$0.16	59.81
Eagle Bancorp Montana	$127.08 million	1.31	$14.84 million	$2.04	10.26

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

Profitability

This table compares First Northwest Bancorp and Eagle Bancorp Montana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Northwest Bancorp	1.32%	0.96%	0.07%
Eagle Bancorp Montana	12.57%	8.36%	0.76%

Analyst Recommendations

This is a breakdown of current ratings and price targets for First Northwest Bancorp and Eagle Bancorp Montana, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Northwest Bancorp	0	3	1	0	2.25
Eagle Bancorp Montana	0	3	0	1	2.50

First Northwest Bancorp currently has a consensus target price of $15.00, indicating a potential upside of 56.74%. Eagle Bancorp Montana has a consensus target price of $23.50, indicating a potential upside of 12.28%. Given First Northwest Bancorp’s higher possible upside, analysts clearly believe First Northwest Bancorp is more favorable than Eagle Bancorp Montana.

Insider and Institutional Ownership

66.1% of First Northwest Bancorp shares are held by institutional investors. Comparatively, 35.7% of Eagle Bancorp Montana shares are held by institutional investors. 4.1% of First Northwest Bancorp shares are held by insiders. Comparatively, 5.8% of Eagle Bancorp Montana shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Eagle Bancorp Montana beats First Northwest Bancorp on 10 of the 15 factors compared between the two stocks.

About First Northwest Bancorp

First Northwest Bancorp operates as a bank holding company for First Fed Bank that provides commercial and consumer banking services to individuals, businesses, and nonprofit organizations in western Washington, the United States. The company accepts various deposit instruments, including checking, money market deposit, savings, and transaction accounts, as well as certificates of deposit. It also originates one- to four-family mortgage loans, commercial and multi-family real estate loans, construction and land loans, and commercial business loans, as well as consumer loans primarily consisting of automobile loans, and home-equity loans and lines of credit. First Northwest Bancorp operates branch offices in Clallam, Jefferson, King, Kitsap, and Whatcom Counties, Washington. First Northwest Bancorp was founded in 1923 and is based in Port Angeles, Washington.

About Eagle Bancorp Montana

Eagle Bancorp Montana, Inc. operates as the bank holding company for Opportunity Bank of Montana that provides various retail banking products and services to small businesses and individuals in Montana. It accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposit accounts. The company also provides 1-4 family residential mortgage loans, such as residential mortgages and construction of residential properties; commercial real estate loans, including multi-family dwellings, nonresidential property, commercial construction and development, and farmland loans; and second mortgage/home equity loans. In addition, it offers consumer loans, such as loans secured by collateral other than real estate, such as automobiles, recreational vehicles, and boats; personal loans and lines of credit; commercial business loans consisting of business loans and lines of credit on a secured and unsecured basis; construction loans; agricultural loans; and mortgage loan services. The company operates full-service branches and automated teller machines. Eagle Bancorp Montana, Inc. was founded in 1922 and is headquartered in Helena, Montana.