Banner (NASDAQ:BANR – Get Free Report) and Flushing Financial (NASDAQ:FFIC – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.
Dividends
Banner pays an annual dividend of $2.00 per share and has a dividend yield of 3.3%. Flushing Financial pays an annual dividend of $0.88 per share and has a dividend yield of 6.4%. Banner pays out 36.4% of its earnings in the form of a dividend. Flushing Financial pays out -73.9% 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. Flushing Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares Banner and Flushing Financial”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Banner | $647.40 million | 3.23 | $168.90 million | $5.49 | 11.00 |
| Flushing Financial | $160.34 million | 2.88 | -$31.33 million | ($1.19) | -11.49 |
Banner has higher revenue and earnings than Flushing Financial. Flushing Financial is trading at a lower price-to-earnings ratio than Banner, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations and price targets for Banner and Flushing Financial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Banner | 0 | 3 | 3 | 0 | 2.50 |
| Flushing Financial | 1 | 1 | 0 | 0 | 1.50 |
Banner currently has a consensus target price of $71.40, indicating a potential upside of 18.23%. Given Banner’s stronger consensus rating and higher possible upside, analysts clearly believe Banner is more favorable than Flushing Financial.
Profitability
This table compares Banner and Flushing Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Banner | 21.80% | 10.32% | 1.17% |
| Flushing Financial | -6.93% | 4.98% | 0.40% |
Risk & Volatility
Banner has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Flushing Financial has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.
Insider and Institutional Ownership
87.3% of Banner shares are held by institutional investors. Comparatively, 67.1% of Flushing Financial shares are held by institutional investors. 1.7% of Banner shares are held by company insiders. Comparatively, 5.7% of Flushing Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Banner beats Flushing Financial on 13 of the 16 factors compared between the two stocks.
About Banner
Banner Corporation operates as the bank holding company for Banner Bank that engages in the provision of commercial banking and financial products and services to individuals, businesses, and public sector entities in the United States. It accepts various deposit instruments, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts, and certificates of deposit, as well as treasury management services and retirement savings plans. The company also provides commercial real estate loans, including owner-occupied, investment properties, and multifamily residential real estate loans; construction, land, and land development loans; one- to four-family residential real estate lending; commercial business loans; agricultural loans; consumer and other loans, such as home equity lines of credit, automobile, and boat and recreational vehicle loans, as well as loans secured by deposit accounts; and small business administration loans. In addition, it provides electronic and digital banking services comprising debit cards and ATMs, internet banking, remote deposit, and mobile banking services. The company was founded in 1890 and is based in Walla Walla, Washington.
About Flushing Financial
Flushing Financial Corporation operates as the bank holding company for Flushing Bank that provides banking products and services primarily to consumers, businesses, and governmental units. It offers various deposit products, including checking and savings accounts, money market accounts, non-interest bearing demand accounts, NOW accounts, and certificates of deposit. The company also provides mortgage loans secured by multi-family residential, commercial real estate, one-to-four family mixed-use property, one-to-four family residential property, and commercial business loans; construction loans; small business administration loans and other small business loans; mortgage loan surrogates, such as mortgage-backed securities; and consumer loans, including overdraft lines of credit, as well as the United States government securities, corporate fixed-income securities, and other marketable securities. It operates full-service banking offices in Queens, Nassau, Suffolk, Kings, and New York counties, New York; and an internet branch under the iGObanking and BankPurely brands. Flushing Financial Corporation was founded in 1929 and is based in Uniondale, New York.
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