Analyzing NB Bancorp (NASDAQ:NBBK) & University Bancorp (OTCMKTS:UNIB)

NB Bancorp (NASDAQ:NBBK) and University Bancorp (OTCMKTS:UNIB) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NB Bancorp	14.30%	8.58%	1.15%
University Bancorp	N/A	N/A	N/A

Volatility & Risk

NB Bancorp has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, University Bancorp has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for NB Bancorp and University Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NB Bancorp	0	3	0	1	2.50
University Bancorp	0	0	0	0	0.00

NB Bancorp presently has a consensus price target of $24.00, indicating a potential upside of 11.89%. Given NB Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe NB Bancorp is more favorable than University Bancorp.

Valuation and Earnings

This table compares NB Bancorp and University Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NB Bancorp	$213.66 million	4.53	$50.30 million	$1.34	16.01
University Bancorp	$137.51 million	0.84	$9.02 million	N/A	N/A

NB Bancorp has higher revenue and earnings than University Bancorp.

Dividends

NB Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.3%. University Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 1.3%. NB Bancorp pays out 20.9% of its earnings in the form of a dividend.

Summary

NB Bancorp beats University Bancorp on 10 of the 12 factors compared between the two stocks.

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.

About University Bancorp

University Bancorp, Inc. operates as the bank holding company for University Bank that provides various personal, business, and community banking services in the United States. It offers checking, NOW, savings, money market, time deposit, and certificates of deposit accounts. The company's consumer loans include home equity, short term, automobile, personal, and recreational vehicle loans, as well as home equity lines of credits; SBA, commercial real estate, equipment, home improvement, and other instalment loans; and non-profit loans, as well as working capital lines of credit. In addition, the company provides foreign currency exchange; reverse mortgage; online banking and bill pay; online reorder checks; wire transfer; and courier services, as well as credit card and ATM services. Further, it offers life, health, property, and casualty insurance products, as well as investment products, including annuities. University Bancorp, Inc. was founded in 1890 and is based in Ann Arbor, Michigan.