Comparing Northpointe Bancshares (NYSE:NPB) & Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL)

Northpointe Bancshares (NYSE:NPB) and Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.

Dividends

Northpointe Bancshares pays an annual dividend of $0.10 per share and has a dividend yield of 0.5%. Home Federal Bancorp, Inc. of Louisiana pays an annual dividend of $0.54 per share and has a dividend yield of 2.6%. Northpointe Bancshares pays out 4.5% of its earnings in the form of a dividend. Home Federal Bancorp, Inc. of Louisiana pays out 28.1% 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. Home Federal Bancorp, Inc. of Louisiana has increased its dividend for 11 consecutive years. Home Federal Bancorp, Inc. of Louisiana is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

21.1% of Home Federal Bancorp, Inc. of Louisiana shares are held by institutional investors. 18.3% of Northpointe Bancshares shares are held by company insiders. Comparatively, 19.4% of Home Federal Bancorp, Inc. of Louisiana shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Northpointe Bancshares and Home Federal Bancorp, Inc. of Louisiana, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northpointe Bancshares	1	2	1	0	2.00
Home Federal Bancorp, Inc. of Louisiana	0	1	0	0	2.00

Northpointe Bancshares currently has a consensus target price of $20.50, indicating a potential upside of 8.73%. Given Northpointe Bancshares’ higher possible upside, research analysts clearly believe Northpointe Bancshares is more favorable than Home Federal Bancorp, Inc. of Louisiana.

Valuation and Earnings

This table compares Northpointe Bancshares and Home Federal Bancorp, Inc. of Louisiana”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	1.38	$83.41 million	$2.22	8.49
Home Federal Bancorp, Inc. of Louisiana	$32.47 million	1.95	$3.89 million	$1.92	10.83

Northpointe Bancshares has higher revenue and earnings than Home Federal Bancorp, Inc. of Louisiana. Northpointe Bancshares is trading at a lower price-to-earnings ratio than Home Federal Bancorp, Inc. of Louisiana, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Northpointe Bancshares and Home Federal Bancorp, Inc. of Louisiana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northpointe Bancshares	17.92%	14.80%	1.28%
Home Federal Bancorp, Inc. of Louisiana	17.27%	10.42%	0.95%

Summary

Northpointe Bancshares beats Home Federal Bancorp, Inc. of Louisiana on 9 of the 15 factors compared between the two stocks.

About Northpointe Bancshares

Northpointe Bancshares, Inc. operates as a bank holding company. It offers a nationwide mortgage purchase program, residential mortgage loans, digital deposit banking to retail customers and custodial deposit services. The company was founded by Charles A. Williams in 1998 and is headquartered in Grand Rapids, MI.

About Home Federal Bancorp, Inc. of Louisiana

Home Federal Bancorp, Inc. of Louisiana operates as the holding company for Home Federal Bank that provides various financial services to individuals, corporate entities, and other organizations. The company accepts various deposits, such as passbook savings, certificates of deposit, and demand deposit accounts. Its loan products include one-to-four family residential real estate loans; commercial real estate secured loans; multi-family residential loans; commercial business loans; land loans; construction loans; home equity and second mortgage loans; lines of credit; and consumer non-real estate loans, including loans secured by deposit accounts, automobile loans, overdrafts, and other unsecured loans. The company operates through branches in Shreveport, Bossier City, Minden, and Benton, Louisiana. The company was founded in 1924 and is based in Shreveport, Louisiana.