Prudential Bancorp (NASDAQ:PBIP) & Northeast Community Bancorp (OTCMKTS:NECB) Head-To-Head Analysis

Prudential Bancorp (NASDAQ:PBIPGet Rating) and Northeast Community Bancorp (OTCMKTS:NECBGet Rating) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Volatility & Risk

Prudential Bancorp has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500. Comparatively, Northeast Community Bancorp has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Earnings and Valuation

This table compares Prudential Bancorp and Northeast Community Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Prudential Bancorp $41.68 million 2.85 $7.78 million ($0.07) -218.29
Northeast Community Bancorp $50.76 million 3.53 $11.90 million $0.86 12.72

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

Profitability

This table compares Prudential Bancorp and Northeast Community Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Prudential Bancorp -1.12% N/A N/A
Northeast Community Bancorp 23.74% 5.58% 1.08%

Dividends

Prudential Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.8%. Northeast Community Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 2.2%. Prudential Bancorp pays out -400.0% of its earnings in the form of a dividend. Northeast Community Bancorp pays out 27.9% 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for Prudential Bancorp and Northeast Community Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Prudential Bancorp 0 1 0 0 2.00
Northeast Community Bancorp 0 0 1 0 3.00

Prudential Bancorp presently has a consensus target price of $15.00, indicating a potential downside of 1.83%. Northeast Community Bancorp has a consensus target price of $12.50, indicating a potential upside of 14.26%. Given Northeast Community Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Northeast Community Bancorp is more favorable than Prudential Bancorp.

Insider & Institutional Ownership

29.2% of Prudential Bancorp shares are held by institutional investors. Comparatively, 30.1% of Northeast Community Bancorp shares are held by institutional investors. 7.0% of Prudential Bancorp shares are held by insiders. Comparatively, 0.9% of Northeast Community Bancorp shares are held by 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.

Summary

Northeast Community Bancorp beats Prudential Bancorp on 14 of the 16 factors compared between the two stocks.

About Prudential Bancorp (Get Rating)

Prudential Bancorp, Inc. operates as the bank holding company for Prudential Bank that provides various banking products or services. The company accepts interest-bearing and non-interest-bearing checking, money market, savings, and certificates of deposit accounts. Its loan portfolio comprises single-family residential mortgage loans, construction and land development loans, non-residential or commercial real estate mortgage loans, home equity loans and lines of credit, and commercial business loans, as well as consumer loans, such as loans secured by deposit accounts and unsecured personal loans. The company also manages a portfolio of investment and mortgage-backed securities; and provides ATM, and online and mobile banking services. It operates a main office in Philadelphia, Pennsylvania, as well as nine additional full-service branch offices, including seven in Philadelphia, Philadelphia County; one in Drexel Hill, Delaware County; and one in Huntingdon Valley, Montgomery County, Pennsylvania. Prudential Bancorp, Inc. was incorporated in 1886 and is headquartered in Philadelphia, Pennsylvania.

About Northeast Community Bancorp (Get Rating)

Northeast Community Bancorp, Inc. operates as the holding company for NorthEast Community Bank that provides financial services for individuals and businesses. It accepts various deposit instruments, including checking accounts, money market accounts, regular savings accounts, and non-interest bearing demand accounts. The company also offers construction, commercial and industrial, multifamily and mixed-use real estate, non-residential real estate loans, and consumer loans. In addition, it invests in various types of liquid assets, including U.S. Treasury obligations, municipal securities, deposits at the Federal Home Loan Bank of New York, and certificates of deposit of federally insured institutions, as well as securities of various federal agencies, and of state and municipal governments. Further, the company offers investment advisory and financial planning services; and life insurance products and fixed-rate annuities. It operates seven full-service branches in New York and three full-service branches in Massachusetts; and loan production 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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