Malaga Financial (OTCMKTS:MLGF) and Northrim BanCorp (NASDAQ:NRIM) Head-To-Head Survey

Northrim BanCorp (NASDAQ:NRIM) and Malaga Financial (OTCMKTS:MLGF) 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, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

66.0% of Northrim BanCorp shares are owned by institutional investors. Comparatively, 1.2% of Malaga Financial shares are owned by institutional investors. 3.9% of Northrim BanCorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Northrim BanCorp and Malaga Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northrim BanCorp	25.17%	18.13%	1.66%
Malaga Financial	N/A	N/A	N/A

Risk and Volatility

Northrim BanCorp has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Malaga Financial has a beta of 0.08, suggesting that its share price is 92% less volatile than the S&P 500.

Dividends

Northrim BanCorp pays an annual dividend of $0.64 per share and has a dividend yield of 2.8%. Malaga Financial pays an annual dividend of $1.00 per share and has a dividend yield of 4.5%. Northrim BanCorp pays out 22.3% of its earnings in the form of a dividend. Malaga Financial pays out 45.9% 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. Northrim BanCorp has increased its dividend for 16 consecutive years.

Analyst Ratings

This is a summary of recent recommendations for Northrim BanCorp and Malaga Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northrim BanCorp	0	1	2	0	2.67
Malaga Financial	0	0	0	0	0.00

Northrim BanCorp presently has a consensus price target of $33.00, suggesting a potential upside of 43.42%. Given Northrim BanCorp’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Northrim BanCorp is more favorable than Malaga Financial.

Valuation & Earnings

This table compares Northrim BanCorp and Malaga Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northrim BanCorp	$255.58 million	1.99	$64.61 million	$2.87	8.02
Malaga Financial	N/A	N/A	$21.55 million	$2.18	10.11

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

Summary

Northrim BanCorp beats Malaga Financial on 14 of the 16 factors compared between the two stocks.

About Northrim BanCorp

Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals. It operates through two segments, Community Banking and Home Mortgage Lending. The company offers noninterest-bearing checking accounts and interest-bearing time deposits, checking and savings accounts, individual retirement and money market deposit accounts, certificates of deposit, and business sweep accounts. It also provides short and medium-term commercial loans, commercial credit lines, construction and real estate loans, and consumer loans, as well as short-term working capital. In addition, the company offers other services comprising consumer and business online banking, mobile app, and mobile deposits; and debit and credit cards. Further, it provides mobile web and app banking, consumer online account opening, personal finance, online documents, consumer debit cards, business debit cards, my rewards for consumer debit cards, retail lockbox, card control, corporate purchase cards, integrated payables, home equity advantage access cards, telebanking, and automated teller services. Additionally, the company offers personalized checks at account opening, overdraft protection from a savings account, commercial drive-up banking, automatic transfer and payment, People Pay, external transfer, Bill Pay, wire transfer, direct payroll deposit, electronic tax payment, Automated Clearing House origination and receipt, remote deposit capture, account reconciliation and positive pay, merchant, cash management, annuity, and long-term investment portfolio products and services. It also provides investment advisory, trust, wealth management, factoring, and mortgage services. The company was founded in 1990 and is headquartered in Anchorage, Alaska.

About Malaga Financial

Malaga Financial Corporation operates as the holding company for Malaga Bank that provides various community banking products and services to personal and business customers. It offers checking, savings, NOW, and money market accounts, certificates of deposits, business banking, consumer, and demand deposits. The company also provides commercial real estate, single and multi-family residential mortgage, consumer, 14-unit investment property, construction, personal, and business loans; home equity lines of credit; and certificates of deposit. In addition, it offers coupon redemption, direct deposit, overdraft lines of credit, telephone transfers, U.S. savings bond redemption, and wire transfer services; and ATM and VISA debit cards, bank by mail, medallion signature guarantee, night depository, notary, safe deposit boxes, and trust deed note collection services. Further, the company provides online banking services, including bill payer, e-statements, and mobile banking services. The company was incorporated in 2002 and is headquartered in Palos Verdes Estates, California.