Head to Head Survey: Carver Bancorp (NASDAQ:CARV) vs. Northeast Bancorp (NASDAQ:NBN)

Northeast Bancorp (NASDAQ:NBN) and Carver Bancorp (NASDAQ:CARV) 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, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northeast Bancorp	22.84%	17.46%	1.91%
Carver Bancorp	-24.99%	-59.15%	-1.34%

Analyst Ratings

This is a breakdown of current ratings for Northeast Bancorp and Carver Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northeast Bancorp	0	1	1	0	2.50
Carver Bancorp	0	0	0	0	0.00

Northeast Bancorp currently has a consensus price target of $97.50, suggesting a potential upside of 11.51%. Given Northeast Bancorp’s stronger consensus rating and higher probable upside, equities analysts clearly believe Northeast Bancorp is more favorable than Carver Bancorp.

Institutional & Insider Ownership

18.2% of Carver Bancorp shares are held by institutional investors. 14.2% of Northeast Bancorp shares are held by company insiders. Comparatively, 1.3% of Carver Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Northeast Bancorp and Carver Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northeast Bancorp	$263.77 million	2.72	$58.23 million	$8.99	9.73
Carver Bancorp	$40.74 million	0.20	-$2.98 million	($1.92)	-0.84

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

Volatility and Risk

Northeast Bancorp has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Carver Bancorp has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.

Summary

Northeast Bancorp beats Carver Bancorp on 12 of the 14 factors compared between the two stocks.

About Northeast Bancorp

Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. Further, it provides various services, such as money market, merchant, and payroll and HR. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.

About Carver Bancorp

Carver Bancorp, Inc. operates as the holding company for Carver Federal Savings Bank that provides consumer and commercial banking services for consumers, businesses, non-profit organizations, and governmental and quasi-governmental agencies primarily in New York. It accepts various deposit products, including demand, savings, and time deposits; passbook and statement accounts, and certificates of deposit; and individual retirement accounts. The company provides lending products, such as one-to-four family residential, multifamily real estate, and commercial real estate lending; and construction, business and small business administration, and consumer and other loans. In addition, it offers other consumer and commercial banking products and services, including debit cards, online account opening and banking, online bill pay, and telephone banking, as well as check cashing, wire transfer, bill payment, reloadable prepaid card, and money order services. Carver Bancorp, Inc. was founded in 1948 and is headquartered in New York, New York.