Head to Head Comparison: Heritage Southeast Bancorporation (OTCMKTS:HSBI) & Broadway Financial (NASDAQ:BYFC)

Risk and Volatility

Heritage Southeast Bancorporation has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Broadway Financial has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500.

Insider & Institutional Ownership

0.2% of Heritage Southeast Bancorporation shares are held by institutional investors. Comparatively, 12.1% of Broadway Financial shares are held by institutional investors. 29.6% of Heritage Southeast Bancorporation shares are held by insiders. Comparatively, 4.1% of Broadway Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Heritage Southeast Bancorporation and Broadway Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heritage Southeast Bancorporation	$75.43 million	0.00	$13.81 million	$2.19	N/A
Broadway Financial	$63.76 million	0.86	$1.93 million	($0.08)	-75.00

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

Profitability

This table compares Heritage Southeast Bancorporation and Broadway Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heritage Southeast Bancorporation	20.73%	N/A	N/A
Broadway Financial	2.59%	1.22%	0.12%

Summary

Heritage Southeast Bancorporation beats Broadway Financial on 7 of the 10 factors compared between the two stocks.

About Heritage Southeast Bancorporation

Heritage Southeast Bancorporation, Inc. operates as the bank holding company for Heritage Southeast Bank that provides a range of commercial and consumer banking products and services primarily in North and South Metro Atlanta, southeastern Georgia, and Northeastern Florida. The company offers checking and savings, money market, and individual retirement accounts, as well as certificates of deposit; personal, home equity, mortgage, term, small business administration, commercial real estate, and construction loans; personal lines of credit; accounts receivable financing; credit and debit cards; and mobile, online, and telephone banking services, as well as cash management, courier, and remote deposit services. The company was founded in 1995 and is based in Jonesboro, Georgia.

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.