First Financial Northwest (NASDAQ: FFNW) and Citizens & Northern Corp (NASDAQ:CZNC) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Dividends

First Financial Northwest pays an annual dividend of $0.28 per share and has a dividend yield of 1.7%. Citizens & Northern Corp pays an annual dividend of $1.04 per share and has a dividend yield of 4.4%. First Financial Northwest pays out 32.2% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares First Financial Northwest and Citizens & Northern Corp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
First Financial Northwest $44.36 million 3.89 $8.89 million $0.87 18.44
Citizens & Northern Corp $60.77 million 4.71 $15.76 million N/A N/A

Citizens & Northern Corp has higher revenue and earnings than First Financial Northwest.

Analyst Ratings

This is a summary of current ratings and target prices for First Financial Northwest and Citizens & Northern Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Financial Northwest 0 0 0 0 N/A
Citizens & Northern Corp 0 0 0 0 N/A

Insider & Institutional Ownership

44.8% of First Financial Northwest shares are held by institutional investors. Comparatively, 28.6% of Citizens & Northern Corp shares are held by institutional investors. 7.3% of First Financial Northwest shares are held by insiders. Comparatively, 4.3% of Citizens & Northern Corp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares First Financial Northwest and Citizens & Northern Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Financial Northwest 18.74% 6.45% 0.84%
Citizens & Northern Corp 25.58% 8.33% 1.26%

Risk and Volatility

First Financial Northwest has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Citizens & Northern Corp has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.

Summary

Citizens & Northern Corp beats First Financial Northwest on 9 of the 11 factors compared between the two stocks.

About First Financial Northwest

First Financial Northwest, Inc. (First Financial Northwest) is a holding company for First Financial Northwest Bank (the Bank). The Bank primarily serves the greater Puget Sound region of King and to a lesser extent, Pierce, Snohomish and Kitsap Counties, Washington through its full-service banking office located in Renton, Washington and branch office in Mill Creek, Washington. The Bank’s business consists of attracting deposits from the public and utilizing these funds to originate one- to four-family residential, multifamily, commercial real estate, construction/land development, business and consumer loans. It focuses on its lending activities primarily on loans secured by commercial real estate, construction/land development, first mortgages on one- to four-family residences, multifamily and business lending. Its investment portfolio consisted principally of mortgage-backed securities, municipal bonds, the United States Government Agency obligations and corporate bonds.

About Citizens & Northern Corp

Citizens & Northern Corporation is a holding company. The Company’s principal activity is community banking. The Company, through its subsidiaries, is engaged in providing a range of banking and mortgage services to individual and corporate customers in North Central Pennsylvania and Southern New York State. It offers lending products, which include mortgage loans, commercial loans and consumer loans, as well as specialized instruments. Its deposit products include various types of checking accounts, passbook and statement savings, money market accounts, interest checking accounts, individual retirement accounts (IRAs) and certificates of deposit. It provides trust and financial management services, including administration of trusts and estates, retirement plans, and other employee benefit plans, and investment management services. Its subsidiaries include Citizens & Northern Bank (C&N Bank or the Bank), Citizens & Northern Investment Corporation and Bucktail Life Insurance Company.

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