Financial Survey: First Northwest Bancorp (NASDAQ:FNWB) and Parke Bancorp (NASDAQ:PKBK)

First Northwest Bancorp (NASDAQ:FNWB) and Parke Bancorp (NASDAQ:PKBK) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for First Northwest Bancorp and Parke Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Northwest Bancorp	0	1	1	1	3.00
Parke Bancorp	0	0	1	0	3.00

First Northwest Bancorp currently has a consensus target price of $14.00, indicating a potential upside of 40.85%. Given First Northwest Bancorp’s higher possible upside, equities research analysts clearly believe First Northwest Bancorp is more favorable than Parke Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Northwest Bancorp	-0.04%	0.62%	0.05%
Parke Bancorp	30.55%	13.91%	2.08%

Volatility & Risk

First Northwest Bancorp has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Parke Bancorp has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Insider and Institutional Ownership

66.1% of First Northwest Bancorp shares are held by institutional investors. Comparatively, 49.7% of Parke Bancorp shares are held by institutional investors. 4.1% of First Northwest Bancorp shares are held by company insiders. Comparatively, 13.0% of Parke Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares First Northwest Bancorp and Parke Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Northwest Bancorp	$67.50 million	1.40	-$4.19 million	($0.01)	-994.00
Parke Bancorp	$146.08 million	2.65	$37.78 million	$3.97	8.27

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

Dividends

First Northwest Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 2.8%. Parke Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. First Northwest Bancorp pays out -2,800.0% of its earnings in the form of a dividend. Parke Bancorp pays out 20.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. First Northwest Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Parke Bancorp beats First Northwest Bancorp on 9 of the 15 factors compared between the two stocks.

About First Northwest Bancorp

First Northwest Bancorp is the bank holding company for First Fed Bank, a community-focused financial institution headquartered in Port Angeles, Washington. First Fed Bank provides banking services to individuals, families, businesses and nonprofit organizations in communities across the Olympic Peninsula and the broader Puget Sound region. The bank offers deposit products such as checking and savings accounts, certificates of deposit and business accounts. Its lending activities include residential mortgages, home-equity loans, consumer loans and commercial financing for businesses and real estate projects.

About Parke Bancorp

Parke Bancorp, Inc. is the bank holding company for Parke Bank, a community bank headquartered in Sewell, New Jersey. Through Parke Bank, the company provides banking and financial services to individuals, businesses and organizations in southern New Jersey and the greater Philadelphia area. Parke Bank’s products and services include checking and savings accounts, certificates of deposit, online and mobile banking, residential mortgages, home equity financing, consumer loans and commercial lending.