Head-To-Head Review: NB Bancorp (NASDAQ:NBBK) and Northeast Community Bancorp (NASDAQ:NECB)

NB Bancorp (NASDAQ:NBBK) and Northeast Community Bancorp (NASDAQ:NECB) are both small-cap financial services companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NB Bancorp	$236.08 million	2.63	$9.82 million	N/A	N/A
Northeast Community Bancorp	$136.23 million	1.64	$46.28 million	$3.23	4.92

Northeast Community Bancorp has lower revenue, but higher earnings than NB Bancorp.

Insider and Institutional Ownership

53.3% of Northeast Community Bancorp shares are held by institutional investors. 1.7% of NB Bancorp shares are held by insiders. Comparatively, 4.7% of Northeast Community Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for NB Bancorp and Northeast Community Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NB Bancorp	0	0	1	0	3.00
Northeast Community Bancorp	0	1	0	0	2.00

NB Bancorp presently has a consensus price target of $17.00, indicating a potential upside of 17.08%. Northeast Community Bancorp has a consensus price target of $15.00, indicating a potential downside of 5.54%. Given NB Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe NB Bancorp is more favorable than Northeast Community Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NB Bancorp	N/A	N/A	N/A
Northeast Community Bancorp	31.94%	16.95%	2.73%

Summary

Northeast Community Bancorp beats NB Bancorp on 6 of the 11 factors compared between the two stocks.

About NB Bancorp

NB Bancorp, Inc. focuses on operating as a bank holding company for Needham Bank that provides various banking products and services in Greater Boston metropolitan area and surrounding communities in Massachusetts, eastern Connecticut, southern New Hampshire, and Rhode Island. The company offers various deposits, including certificate of deposit, individual retirement, money market, savings, NOW, demand deposit, and interest-bearing and noninterest-bearing checking accounts; and commercial real estate and multifamily, one- to four-family residential real estate, construction and land development, commercial and industrial, and consumer loans, as well as home equity loans and lines of credit. It also invests in securities consisting of U.S. treasury and federal agency securities, government-sponsored residential mortgage-backed securities, municipal bonds, and corporate bonds. The company was founded in 1892 and is based in Needham, Massachusetts.

About Northeast Community Bancorp

Northeast Community Bancorp, Inc. operates as the holding company for NorthEast Community Bank that provides financial services for individuals and businesses. It accepts various deposit instruments, including checking accounts, money market accounts, regular savings accounts, and non-interest bearing demand accounts, as well as certificates of deposits. The company also offers construction, commercial and industrial, multifamily and mixed-use real estate, non-residential real estate loans, and consumer loans. In addition, it invests in various types of liquid assets, including U.S. Treasury obligations, municipal securities, deposits at the Federal Home Loan Bank of New York, and certificates of deposit of federally insured institutions, as well as securities of various federal agencies, and of state and municipal governments. Further, the company offers financial planning and investment advisory services; and life insurance products and fixed-rate annuities. It operates full-service branches located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts; and loan production offices located in White Plains, New York, and New City counties in New York and Danvers, Massachusetts. Northeast Community Bancorp, Inc. was founded in 1934 and is headquartered in White Plains, New York.