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

Risk and Volatility

Northeast Community Bancorp has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500. Comparatively, Hometrust Bancshares has a beta of 0.41, suggesting that its stock price is 59% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Northeast Community Bancorp and Hometrust Bancshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northeast Community Bancorp 0 0 0 0 N/A
Hometrust Bancshares 0 2 0 0 2.00

Hometrust Bancshares has a consensus target price of $28.00, suggesting a potential upside of 14.71%. Given Hometrust Bancshares’ higher probable upside, analysts clearly believe Hometrust Bancshares is more favorable than Northeast Community Bancorp.

Valuation and Earnings

This table compares Northeast Community Bancorp and Hometrust Bancshares’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Northeast Community Bancorp $39.55 million 3.71 $8.05 million N/A N/A
Hometrust Bancshares $136.37 million 3.34 $8.17 million $1.38 17.69

Hometrust Bancshares has higher revenue and earnings than Northeast Community Bancorp.

Dividends

Northeast Community Bancorp pays an annual dividend of $0.12 per share and has a dividend yield of 1.0%. Hometrust Bancshares pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Hometrust Bancshares pays out 17.4% of its earnings in the form of a dividend.

Insider and Institutional Ownership

1.4% of Northeast Community Bancorp shares are owned by institutional investors. Comparatively, 62.3% of Hometrust Bancshares shares are owned by institutional investors. 0.9% of Northeast Community Bancorp shares are owned by company insiders. Comparatively, 6.3% of Hometrust Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Northeast Community Bancorp and Hometrust Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northeast Community Bancorp N/A N/A N/A
Hometrust Bancshares 7.38% 6.93% 0.85%

Summary

Hometrust Bancshares beats Northeast Community Bancorp on 9 of the 12 factors compared between the two stocks.

Northeast Community Bancorp Company Profile

Northeast Community Bancorp, Inc. operates as the holding company for Northeast Community Bank that provides various financial services to consumers and businesses. The company accepts deposit products, such as checking accounts, money market accounts, savings accounts, certificates of deposit, and individual retirement accounts. Its loan products include multi-family, mixed-use, and non-residential real estate loans; commercial and industrial loans; construction loans; consumer loans; passbook, term, small business administration, and cooperative building loans; and revolving lines of credit. The company also offers various ATM/debit, credit, and gift cards; and investment advisory and financial planning, direct and remote deposit, wire transfer, automated clearing house, credit card merchant, coin and currency, and cash management services, as well as Internet, mobile, and telephone banking services. It operates four full-service branches in New York; three full-service branches in Massachusetts; and a loan production office in New City, New York. The company was founded in 1934 and is headquartered in White Plains, New York. Northeast Community Bancorp, Inc. is a subsidiary of Northeast Community Bancorp, MHC.

Hometrust Bancshares Company Profile

HomeTrust Bancshares, Inc. operates as the bank holding company for HomeTrust Bank that provides a range of retail and commercial banking products. Its deposit products include savings, money market, and demand accounts, as well as certificates of deposit for individuals, businesses, and nonprofit organizations. The company's loan portfolio comprises retail consumer loans, such as one-to-four-family real estate lending, home equity lines of credit, construction and land/lots, indirect auto finance, and consumer lending; and commercial loans that include commercial real estate lending, construction and development lending, and commercial and industrial loans. It also provides small business administration loans, indirect automobile loans, and municipal leases; and cash management and online/mobile banking services, as well as ground and equipment lease financing to fire departments. As of June 30, 2018, the company operated 43 offices in North Carolina, Upstate South Carolina, East Tennessee, and Southwest Virginia. HomeTrust Bancshares, Inc. was founded in 1926 and is headquartered in Asheville, North Carolina.

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