Reviewing Freedom Financial (OTCMKTS:FDVA) and Northeast Community Bancorp (NASDAQ:NECB)

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

Earnings and Valuation

This table compares Freedom Financial and Northeast Community Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freedom Financial	$63.61 million	1.37	$380,000.00	($0.07)	-174.29
Northeast Community Bancorp	$158.21 million	2.06	$44.41 million	$3.22	7.34

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

Volatility and Risk

Freedom Financial has a beta of 0.08, meaning that its stock price is 92% less volatile than the S&P 500. Comparatively, Northeast Community Bancorp has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Freedom Financial and Northeast Community Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freedom Financial	0	0	0	0	0.00
Northeast Community Bancorp	0	1	1	1	3.00

Institutional and Insider Ownership

53.3% of Northeast Community Bancorp shares are owned by institutional investors. 7.1% of Northeast Community Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Freedom Financial	-0.78%	-0.57%	-0.05%
Northeast Community Bancorp	28.16%	12.62%	2.16%

Summary

Northeast Community Bancorp beats Freedom Financial on 14 of the 14 factors compared between the two stocks.

About Freedom Financial

Freedom Financial Holdings, Inc. operates as the bank holding company for The Freedom Bank of Virginia that provides commercial banking, personal banking, and mortgage banking solutions. The company offers personal and business checking accounts, interest bearing business savings accounts, money market accounts, personal savings accounts, certificates of deposits, and IRAs, as well as insured cash sweep and certificate of deposit account registry services. It also provides business term, personal, and mortgage loans; commercial lines of credit; commercial real estate mortgage and small business lending services; home equity lines; and credit cards. In addition, the company offers treasury management, online and mobile banking, remote deposit capture, ACH, and wire transfer services; business valuation, bank-at-work, and merchant services; and prestige banking services. The company was founded in 2001 and is headquartered in Fairfax, Virginia.

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.