Analysis of Northeast Community Bancorp (OTCMKTS:NECB) and William Penn Bancorporation (NASDAQ:WMPN)
William Penn Bancorporation (NASDAQ: WMPN – Get a rating) and Northeast Community Bancorp (OTCMKTS: CNEB – Get a rating) are both small cap finance companies, but which is the better company? We’ll compare the two companies based on valuation strength, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.
This table compares the net margins, return on equity and return on assets of William Penn Bancorporation and Northeast Community Bancorp.
|Net margins||Return on equity||return on assets|
|William Penn Bancorporation||14.09%||1.91%||0.49%|
|North East Community Bancorp||23.74%||5.38%||1.05%|
This is a breakdown of recent recommendations and price targets for William Penn Bancorporation and Northeast Community Bancorp, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|William Penn Bancorporation||0||0||1||0||3.00|
|North East Community Bancorp||0||0||1||0||3.00|
William Penn Bancorporation currently has a consensus target price of $14.50, indicating a potential upside of 24.04%. Northeast Community Bancorp has a consensus target price of $12.50, indicating a potential upside of 11.41%. Given the higher possible upside of William Penn Bancorporation, research analysts clearly believe that William Penn Bancorporation is more favorable than Northeast Community Bancorp.
Valuation and benefits
This table compares revenue, earnings per share (EPS), and valuation of William Penn Bancorporation and Northeast Community Bancorp.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|William Penn Bancorporation||$28.16 million||6.24||$3.78 million||$0.27||43:30|
|North East Community Bancorp||$50.76 million||3.62||$11.90 million||$0.86||13.05|
Northeast Community Bancorp has higher revenues and profits than William Penn Bancorporation. Northeast Community Bancorp trades at a lower price-to-earnings ratio than William Penn Bancorporation, indicating that it is currently the more affordable of the two stocks.
Institutional and insider ownership
22.1% of the shares of William Penn Bancorporation are held by institutional investors. By comparison, 30.1% of Northeast Community Bancorp’s shares are held by institutional investors. 2.9% of the shares of William Penn Bancorporation are held by insiders. By comparison, 0.9% of the shares of Northeast Community Bancorp are held by insiders. Strong institutional ownership is an indication that endowments, large fund managers, and hedge funds believe a company will outperform the market over the long term.
William Penn Bancorporation pays an annual dividend of $0.12 per share and has a dividend yield of 1.0%. Northeast Community Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 2.1%. William Penn Bancorporation pays 44.4% of its profits as a dividend. Northeast Community Bancorp pays 27.9% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. William Penn Bancorporation has increased its dividend for 8 consecutive years. Northeast Community Bancorp is clearly the best dividend stock, given its higher yield and lower payout ratio.
Volatility and risk
William Penn Bancorporation has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500. By comparison, Northeast Community Bancorp has a beta of 0.68, suggesting that its stock price its stock is 32% less volatile than the S&P 500.
Northeast Community Bancorp beats William Penn Bancorporation on 10 out of 15 factors compared between the two stocks.
Company Profile William Penn Bancorporation (Get a rating)
William Penn Bancorporation operates as a holding company for William Penn Bank which provides retail and commercial banking products and related financial services in the United States. The company offers term, savings and demand deposits; certificates of deposit; and checking, money market, savings and club, and individual retirement accounts. It also offers residential and commercial real estate for investors with one to four families, non-residential real estate, multi-family residences, commercial enterprises and consumers, residential and commercial construction and land loans, as well as loans home equity and lines of credit. credit, small business administration loans and CDARS. Additionally, the company offers business credit cards, mobile deposits, debit cards, safe deposit boxes, money orders, wire transfers; and notary public, night deposit and cash management services, as well as online, telephone and mobile banking. It serves individuals, businesses and government customers. The company offers its services through twelve full-service branches in Bucks and Philadelphia counties, Pennsylvania; and Burlington and Camden Counties, New Jersey. William Penn Bancorporation was founded in 1870 and is headquartered in Bristol, Pennsylvania.
Northeast Community Bancorp Company Profile (Get a rating)
Northeast Community Bancorp, Inc. is the holding company of NorthEast Community Bank which provides financial services to individuals and businesses. It accepts a variety of deposit instruments, including checking accounts, money market accounts, ordinary savings accounts, and non-interest bearing current accounts. The Company also offers construction, commercial and industrial, multi-family and mixed-use, non-residential and consumer real estate loans. In addition, it invests in various types of liquid assets, including US Treasury bonds, municipal securities, deposits at the Federal Home Loan Bank of New York and certificates of deposit from federally insured institutions, as well as as securities from various federal agencies, and state and municipal governments. In addition, the company offers investment advisory and financial planning services; and fixed rate life insurance and annuity products. It operates seven full-service branches in New York and three full-service branches in Massachusetts; and loan origination offices in White Plains and New City, New York, as well as Danvers, Massachusetts. The company was founded in 1934 and is based in White Plains, New York.
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