Contrasting Finward Bancorp (NASDAQ:FNWD) & FFW (OTCMKTS:FFWC)

Finward Bancorp (NASDAQ:FNWD) and FFW (OTCMKTS:FFWC) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares Finward Bancorp and FFW’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Finward Bancorp	8.68%	6.17%	0.40%
FFW	16.75%	N/A	N/A

Dividends

Finward Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.0%. FFW pays an annual dividend of $1.16 per share and has a dividend yield of 3.4%. Finward Bancorp pays out 24.7% of its earnings in the form of a dividend. FFW pays out 28.4% 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 Recommendations

This is a summary of recent ratings and recommmendations for Finward Bancorp and FFW, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Finward Bancorp	0	0	0	0	N/A
FFW	0	0	0	0	N/A

Risk and Volatility

Finward Bancorp has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, FFW has a beta of 0.05, indicating that its share price is 95% less volatile than the S&P 500.

Insider & Institutional Ownership

26.6% of Finward Bancorp shares are held by institutional investors. 13.7% of Finward Bancorp shares are held by company insiders. Comparatively, 17.0% of FFW shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Finward Bancorp and FFW’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Finward Bancorp	$96.53 million	1.09	$8.38 million	$1.94	12.62
FFW	$25.63 million	1.52	$5.70 million	$4.08	8.46

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

Summary

Finward Bancorp beats FFW on 8 of the 13 factors compared between the two stocks.

About Finward Bancorp

Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services. The company's deposit products include non-interest- and interest-bearing demand accounts, savings accounts, money market deposit accounts, certificate accounts, and retirement savings plans. Its loan products portfolio comprises residential mortgage loans that enable borrowers to purchase existing homes, refinance existing homes, or construct new homes; construction loans primarily to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household, or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities. The company also offers estate and retirement planning, guardianships, land trusts, profit sharing and 401(k) retirement plans, IRA and Keogh accounts, and investment agency accounts, as well as serves as the personal representative of estates, and acts as trustee for revocable and irrevocable trusts. In addition, it provides insurance and annuity investments to wealth management customers; holds real estate properties; and operates as a real estate investment trust. The company was formerly known as NorthWest Indiana Bancorp and changed its name to Finward Bancorp in May 2021. Finward Bancorp was founded in 1916 and is headquartered in Munster, Indiana.

About FFW

FFW Corporation operates as the bank holding company for Crossroads Bank that provides various banking products and services. The company offers checking and savings accounts, overdraft protection, consumer credit cards, and reorder checks. Its loan products include home equity, auto, RV, boat, motorcycle, and personal loans; mortgage loans; agricultural loans; commercial real estate equipment financing; revolving lines of credit and standby letters of credit; and equipment leasing, as well as commercial lending services. The company offers insurance products, such as auto, home and property, business, life and health, and specialty insurance; investment products and securities; and digital banking services. FFW Corporation was founded in 1920 and is based in Wabash, Indiana.