Analyzing Broadway Financial (NASDAQ:BYFC) & Northeast Indiana Bancorp (OTCMKTS:NIDB)

Broadway Financial (NASDAQ:BYFC) and Northeast Indiana Bancorp (OTCMKTS:NIDB) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Risk and Volatility

Broadway Financial has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Northeast Indiana Bancorp has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500.

Institutional and Insider Ownership

12.1% of Broadway Financial shares are owned by institutional investors. 3.0% of Broadway Financial shares are owned by insiders. Comparatively, 19.8% of Northeast Indiana Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Broadway Financial and Northeast Indiana Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadway Financial	$63.03 million	1.46	-$24.80 million	($2.75)	-3.60
Northeast Indiana Bancorp	$33.64 million	1.65	$6.27 million	$2.88	8.19

Northeast Indiana Bancorp has lower revenue, but higher earnings than Broadway Financial. Broadway Financial is trading at a lower price-to-earnings ratio than Northeast Indiana Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Broadway Financial and Northeast Indiana Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Broadway Financial	-31.80%	3.01%	0.27%
Northeast Indiana Bancorp	19.98%	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations for Broadway Financial and Northeast Indiana Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadway Financial	1	0	0	0	1.00
Northeast Indiana Bancorp	0	0	0	0	0.00

About Broadway Financial

Broadway Financial Corporation operates as the holding company for City First Bank, National Association that provides various banking products and services in the United States. It accepts various deposit accounts, including savings accounts, checking accounts, interest checking accounts, money market accounts, and fixed-term certificates of deposit. The company also offers mortgage loans, which are secured by multi-family residential properties; single family residential properties; and commercial real estate, including charter schools, community facilities, and churches, as well as commercial business, construction, and consumer loans. In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments. The company was founded in 1946 and is headquartered in Los Angeles, California.

About Northeast Indiana Bancorp

Northeast Indiana Bancorp, Inc. operates as the bank holding company for First Federal Savings Bank that provides various banking and financial advisory services. The company offers checking accounts, savings accounts, retirement accounts, health savings accounts, and direct deposits, as well as certificates of deposit. It also provides mortgage, refinance, new construction, and home equity loans; auto, recreational vehicle, and unsecured loans; and revolving lines of credit, term loans, real estate loans, letter of credit, and small business administration loans, as well as debit and credit cards. In addition, the company offers merchant, online banking, and cash management services. It operates through full-service locations in Huntington, Warsaw, and Fort Wayne, Indiana. The company was founded in 1912 and is headquartered in Huntington, Indiana.