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

Insider & Institutional Ownership

0.6% of First National Bank Alaska shares are owned by institutional investors. Comparatively, 64.1% of Northeast Bancorp shares are owned by institutional investors. 14.2% of Northeast Bancorp shares are owned 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.

Earnings & Valuation

This table compares First National Bank Alaska and Northeast Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First National Bank Alaska $169.55 million 3.93 $55.60 million N/A N/A
Northeast Bancorp $87.95 million 1.15 $13.88 million $2.20 5.07

First National Bank Alaska has higher revenue and earnings than Northeast Bancorp.

Dividends

First National Bank Alaska pays an annual dividend of $12.80 per share and has a dividend yield of 6.1%. Northeast Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. Northeast Bancorp pays out 1.8% of its earnings in the form of a dividend.

Risk and Volatility

First National Bank Alaska has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500. Comparatively, Northeast Bancorp has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for First National Bank Alaska and Northeast Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First National Bank Alaska 0 0 0 0 N/A
Northeast Bancorp 0 0 0 0 N/A

Profitability

This table compares First National Bank Alaska and Northeast Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First National Bank Alaska N/A N/A N/A
Northeast Bancorp 15.58% 12.98% 1.61%

Summary

Northeast Bancorp beats First National Bank Alaska on 6 of the 11 factors compared between the two stocks.

About First National Bank Alaska

First National Bank Alaska, a commercial bank, provides various banking products and services for business, industry, and individual customers primarily in Alaska. It offers personal banking products and services, including savings and checking accounts; money market deposits and safe deposit services; certificates of deposit; individual retirement accounts; and personal and home equity loans. The company also provides business banking products and services, such as business checking and savings accounts, and money market deposits; cash management, safe deposit, and merchant services; and loans for stability and growth. In addition, it offers debit and credit cards, trust and investment management, online and mobile banking, escrow, and convenience banking services. The company operates through 29 branches. First National Bank Alaska was founded in 1922 and is headquartered in Anchorage, Alaska.

About Northeast Bancorp

Northeast Bancorp operates as the bank holding company for Northeast Bank that provides banking products and services to individual and corporate customers in the United States. The company's deposit products include noninterest-bearing demand deposit, savings, NOW, and money market accounts, as well as certificate of deposit 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 automobile, boat, and recreational vehicle loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, and remote deposit capture services, as well as debit card, ATM, electronic transfer, and check services. As of July 30, 2018, it provided personal and business banking services through 10 branches in south-central and western Maine. The company was formerly known as Bethel Bancorp, Inc. and changed its name to Northeast Bancorp in 1996. Northeast Bancorp was founded in 1872 and is headquartered in Lewiston, Maine.

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