Comparing Northpointe Bancshares (NYSE:NPB) & ChoiceOne Financial Services (NASDAQ:COFS)

Northpointe Bancshares (NYSE:NPB) and ChoiceOne Financial Services (NASDAQ:COFS) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Insider & Institutional Ownership

19.9% of ChoiceOne Financial Services shares are owned by institutional investors. 18.3% of Northpointe Bancshares shares are owned by company insiders. Comparatively, 6.5% of ChoiceOne Financial Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Northpointe Bancshares has a beta of 0.09, indicating that its share price is 91% less volatile than the S&P 500. Comparatively, ChoiceOne Financial Services has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Northpointe Bancshares and ChoiceOne Financial Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northpointe Bancshares	2	1	2	0	2.00
ChoiceOne Financial Services	0	1	2	0	2.67

Northpointe Bancshares presently has a consensus price target of $20.25, indicating a potential upside of 30.56%. ChoiceOne Financial Services has a consensus price target of $37.50, indicating a potential upside of 2.00%. Given Northpointe Bancshares’ higher probable upside, equities analysts clearly believe Northpointe Bancshares is more favorable than ChoiceOne Financial Services.

Dividends

Northpointe Bancshares pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. ChoiceOne Financial Services pays an annual dividend of $1.16 per share and has a dividend yield of 3.2%. Northpointe Bancshares pays out 5.6% of its earnings in the form of a dividend. ChoiceOne Financial Services pays out 32.0% 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. ChoiceOne Financial Services has increased its dividend for 13 consecutive years. ChoiceOne Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Northpointe Bancshares and ChoiceOne Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northpointe Bancshares	16.27%	13.88%	1.12%
ChoiceOne Financial Services	22.66%	12.15%	1.29%

Valuation and Earnings

This table compares Northpointe Bancshares and ChoiceOne Financial Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northpointe Bancshares	$471.18 million	1.14	$83.41 million	$2.13	7.28
ChoiceOne Financial Services	$227.62 million	2.41	$28.18 million	$3.63	10.13

Northpointe Bancshares has higher revenue and earnings than ChoiceOne Financial Services. Northpointe Bancshares is trading at a lower price-to-earnings ratio than ChoiceOne Financial Services, indicating that it is currently the more affordable of the two stocks.

Summary

ChoiceOne Financial Services beats Northpointe Bancshares on 10 of the 16 factors compared between the two stocks.

About Northpointe Bancshares

Northpointe Bancshares, Inc. is a bank holding company headquartered in Grand Rapids, Michigan, and the parent of Northpointe Bank. The company provides banking and mortgage services to consumers and businesses. Its offerings include residential mortgage lending, deposit accounts and commercial banking services. Northpointe Bank also works with mortgage-industry partners through lending and related financial services. Based in Michigan, the company serves customers and business partners across the United States.

About ChoiceOne Financial Services

ChoiceOne Financial Services, Inc. is a bank holding company headquartered in Sparta, Michigan. Through its subsidiary, ChoiceOne Bank, it provides personal and business banking services, including deposit accounts, commercial and consumer loans, and mortgage lending. The bank serves individuals, businesses, farmers, and local organizations in communities across western and southeastern Michigan. Its offerings also include digital banking and other services that support customers’ day-to-day financial needs.