NB Bancorp (NBBK) versus Its Rivals Critical Analysis

NB Bancorp (NASDAQ:NBBK) is one of 43 public companies in the “Savings institutions, except federal” industry, but how does it compare to its rivals? We will compare NB Bancorp to similar businesses based on the strength of its analyst recommendations, earnings, valuation, institutional ownership, profitability, risk and dividends.

Insider and Institutional Ownership

44.7% of shares of all “Savings institutions, except federal” companies are owned by institutional investors. 1.7% of NB Bancorp shares are owned by company insiders. Comparatively, 8.4% of shares of all “Savings institutions, except federal” companies are owned 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.

Valuation and Earnings

This table compares NB Bancorp and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NB Bancorp	$304.05 million	$42.15 million	17.93
NB Bancorp Competitors	$490.02 million	-$13.20 million	4.29

NB Bancorp’s rivals have higher revenue, but lower earnings than NB Bancorp. NB Bancorp is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

NB Bancorp has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, NB Bancorp’s rivals have a beta of 0.57, suggesting that their average stock price is 43% less volatile than the S&P 500.

Profitability

This table compares NB Bancorp and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NB Bancorp	13.86%	6.04%	0.93%
NB Bancorp Competitors	8.09%	4.81%	0.56%

Analyst Recommendations

This is a summary of current ratings for NB Bancorp and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NB Bancorp	0	0	1	0	3.00
NB Bancorp Competitors	134	621	380	7	2.23

NB Bancorp presently has a consensus price target of $22.00, indicating a potential upside of 14.64%. As a group, “Savings institutions, except federal” companies have a potential upside of 6.41%. Given NB Bancorp’s stronger consensus rating and higher possible upside, research analysts clearly believe NB Bancorp is more favorable than its rivals.

Summary

NB Bancorp beats its rivals on 8 of the 13 factors compared.

NB Bancorp Company Profile

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.