FFW (OTCMKTS:FFWC) and Northeast Bancorp (NASDAQ:NBN) Financial Analysis

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FFW	$32.63 million	1.71	$5.54 million	$5.79	8.85
Northeast Bancorp	$351.00 million	2.96	$83.44 million	$11.67	10.84

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FFW	18.80%	N/A	N/A
Northeast Bancorp	25.96%	18.63%	2.13%

Analyst Ratings

This is a summary of current recommendations and price targets for FFW and Northeast Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FFW	0	0	0	0	0.00
Northeast Bancorp	0	1	2	0	2.67

Northeast Bancorp has a consensus target price of $130.50, suggesting a potential upside of 3.17%. Given Northeast Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Northeast Bancorp is more favorable than FFW.

Risk & Volatility

FFW has a beta of -0.12, meaning that its share price is 112% less volatile than the S&P 500. Comparatively, Northeast Bancorp has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.

Dividends

FFW pays an annual dividend of $1.24 per share and has a dividend yield of 2.4%. Northeast Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. FFW pays out 21.4% of its earnings in the form of a dividend. Northeast Bancorp pays out 0.3% 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.

Summary

Northeast Bancorp beats FFW on 13 of the 14 factors compared between the two stocks.

About FFW

FFW Corporation operates as the bank holding company for Crossroads Bank that provides various banking products and services. The company offers checking and savings accounts, overdraft protection, consumer credit cards, and reorder checks. Its loan products include home equity, auto, RV, boat, motorcycle, and personal loans; mortgage loans; agricultural loans; commercial real estate equipment financing; revolving lines of credit and standby letters of credit; and equipment leasing, as well as commercial lending services. The company offers insurance products, such as auto, home and property, business, life and health, and specialty insurance; investment products and securities; and digital banking services. FFW Corporation was founded in 1920 and is based in Wabash, Indiana.

About Northeast Bancorp

Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. Further, it provides various services, such as money market, merchant, and payroll and HR. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.