Head to Head Analysis: Northeast Community Bancorp (NASDAQ:NECB) versus NB Bancorp (NASDAQ:NBBK)

Northeast Community Bancorp (NASDAQ:NECB) and NB Bancorp (NASDAQ:NBBK) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Valuation & Earnings

This table compares Northeast Community Bancorp and NB Bancorp’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northeast Community Bancorp	$136.23 million	1.63	$46.28 million	$3.23	4.89
NB Bancorp	$236.08 million	2.64	$9.82 million	N/A	N/A

Northeast Community Bancorp has higher earnings, but lower revenue than NB Bancorp.

Analyst Ratings

This is a breakdown of current ratings and price targets for Northeast Community Bancorp and NB Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northeast Community Bancorp	0	1	0	0	2.00
NB Bancorp	0	0	1	0	3.00

Northeast Community Bancorp currently has a consensus target price of $15.00, suggesting a potential downside of 4.94%. NB Bancorp has a consensus target price of $17.00, suggesting a potential upside of 16.28%. Given NB Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe NB Bancorp is more favorable than Northeast Community Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northeast Community Bancorp	31.94%	16.95%	2.73%
NB Bancorp	N/A	N/A	N/A

Institutional & Insider Ownership

53.3% of Northeast Community Bancorp shares are owned by institutional investors. 4.7% of Northeast Community Bancorp shares are owned by company insiders. Comparatively, 1.7% of NB Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Northeast Community Bancorp beats NB Bancorp on 6 of the 11 factors compared between the two stocks.

About Northeast Community Bancorp

Northeast Community Bancorp, Inc. operates as the holding company for NorthEast Community Bank that provides financial services for individuals and businesses. It accepts various deposit instruments, including checking accounts, money market accounts, regular savings accounts, and non-interest bearing demand accounts, as well as certificates of deposits. The company also offers construction, commercial and industrial, multifamily and mixed-use real estate, non-residential real estate loans, and consumer loans. In addition, it invests in various types of liquid assets, including U.S. Treasury obligations, municipal securities, deposits at the Federal Home Loan Bank of New York, and certificates of deposit of federally insured institutions, as well as securities of various federal agencies, and of state and municipal governments. Further, the company offers financial planning and investment advisory services; and life insurance products and fixed-rate annuities. It operates full-service branches located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts; and loan production offices located in White Plains, New York, and New City counties in New York and Danvers, Massachusetts. Northeast Community Bancorp, Inc. was founded in 1934 and is headquartered in White Plains, New York.

About NB Bancorp

NB Bancorp, Inc. focuses on operating as a bank holding company for Needham Bank that provides various banking products and services in Greater Boston metropolitan area and surrounding communities in Massachusetts, eastern Connecticut, southern New Hampshire, and Rhode Island. The company offers various deposits, including certificate of deposit, individual retirement, money market, savings, NOW, demand deposit, and interest-bearing and noninterest-bearing checking accounts; and commercial real estate and multifamily, one- to four-family residential real estate, construction and land development, commercial and industrial, and consumer loans, as well as home equity loans and lines of credit. It also invests in securities consisting of U.S. treasury and federal agency securities, government-sponsored residential mortgage-backed securities, municipal bonds, and corporate bonds. The company was founded in 1892 and is based in Needham, Massachusetts.