Ponce Financial Group (NASDAQ:PDLB) and ALT5 Sigma (NASDAQ:ALTS) Critical Analysis

Ponce Financial Group (NASDAQ:PDLB) and ALT5 Sigma (NASDAQ:ALTS) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Insider and Institutional Ownership

64.4% of Ponce Financial Group shares are held by institutional investors. Comparatively, 6.3% of ALT5 Sigma shares are held by institutional investors. 7.2% of Ponce Financial Group shares are held by company insiders. Comparatively, 0.7% of ALT5 Sigma shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Ponce Financial Group and ALT5 Sigma, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ponce Financial Group	0	1	0	2	3.33
ALT5 Sigma	1	0	0	0	1.00

Profitability

This table compares Ponce Financial Group and ALT5 Sigma’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ponce Financial Group	11.46%	7.35%	0.69%
ALT5 Sigma	133.06%	8.60%	7.10%

Valuation and Earnings

This table compares Ponce Financial Group and ALT5 Sigma”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ponce Financial Group	$169.85 million	2.39	$10.97 million	$0.89	18.97
ALT5 Sigma	$12.53 million	23.17	-$6.24 million	N/A	N/A

Ponce Financial Group has higher revenue and earnings than ALT5 Sigma.

Volatility & Risk

Ponce Financial Group has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, ALT5 Sigma has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500.

Summary

Ponce Financial Group beats ALT5 Sigma on 6 of the 11 factors compared between the two stocks.

About Ponce Financial Group

Ponce Financial Group, Inc. operates as the bank holding company for Ponce Bank that provides various banking products and services. It offers various deposit products, including demand accounts, NOW/IOLA, money market, reciprocal deposits, savings accounts, and certificates of deposit to individuals, business entities, and non-profit organizations, as well as individual retirement accounts. The company also provides real estate-secured loans, which includes one-to-four family investor-owned and owner-occupied residential; multifamily residential; nonresidential property; construction and land; commercial and industrial; and business and consumer loans, as well as lines of credit. In addition, it invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or owned enterprises, as well as corporate securities, mortgage-backed securities, and Federal Home Loan Bank stock. Ponce Financial Group, Inc. was founded in 1960 and is headquartered in Bronx, New York.

About ALT5 Sigma

ALT5 Sigma Corp. is a clinical-stage biopharmaceutical company, which engages in identifying, acquiring, licensing, developing, partnering, and commercializing novel, non-opioid, and non-addictive therapies to address the large unmet medical need for the treatment of pain and addiction. It operates under the Biotechnology and Recycling segments. The Biotechnology segment focuses on finding treatments for conditions that cause severe pain and bringing to market drugs with non-addictive pain-relieving properties. The Recycling segment is involved in a turnkey appliance recycling program. The company was founded by Edward R. Cameron in 1976 and is headquartered in Las Vegas, NV.