Analyzing Mvb Financial (NASDAQ:MVBF) and NB Bancorp (NASDAQ:NBBK)

Mvb Financial (NASDAQ:MVBF) and NB Bancorp (NASDAQ:NBBK) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Valuation & Earnings

This table compares Mvb Financial and NB Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mvb Financial	$228.76 million	1.39	$20.09 million	$1.30	19.18
NB Bancorp	$304.05 million	2.33	$42.15 million	$1.33	13.36

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

Dividends

Mvb Financial pays an annual dividend of $0.68 per share and has a dividend yield of 2.7%. NB Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.6%. Mvb Financial pays out 52.3% of its earnings in the form of a dividend. NB Bancorp pays out 21.1% 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 summary of recent ratings for Mvb Financial and NB Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mvb Financial	0	0	5	0	3.00
NB Bancorp	0	1	1	0	2.50

Mvb Financial currently has a consensus price target of $28.00, indicating a potential upside of 12.27%. NB Bancorp has a consensus price target of $20.00, indicating a potential upside of 12.55%. Given NB Bancorp’s higher possible upside, analysts clearly believe NB Bancorp is more favorable than Mvb Financial.

Profitability

This table compares Mvb Financial and NB Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mvb Financial	7.84%	5.60%	0.53%
NB Bancorp	15.86%	7.37%	1.07%

Insider & Institutional Ownership

52.7% of Mvb Financial shares are owned by institutional investors. 11.7% of Mvb Financial shares are owned by insiders. Comparatively, 1.9% of NB Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Mvb Financial has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, NB Bancorp has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500.

Summary

NB Bancorp beats Mvb Financial on 9 of the 16 factors compared between the two stocks.

About Mvb Financial

MVB Financial Corp. operates as bank holding company for MVB Bank, Inc that provides financial services to individuals and corporate clients. The company operates through three segments: CoRe Banking, Mortgage Banking, and The Financial Holding Company. It offers various demand deposit accounts, savings accounts, money market accounts, and certificates of deposit; and commercial, consumer, and real estate mortgage loans, as well as lines of credit. The company also provides debit cards; cashier's checks; safe deposit rental facilities; and non-deposit investment services, as well as financial technology (Fintech) banking services. In addition, it offers fintech solutions for the gaming, payments, banking-as-a-service, and digital asset sectors; fraud prevention services for merchants, credit agencies, Fintech companies, and other vendors; and digital products and web and mobile applications for forward-thinking community banks, credit unions, digital banks, and Fintech companies. It operates full-service branches in West Virginia and Virginia. MVB Financial Corp. was founded in 1997 and is based in Fairmont, West Virginia.

About NB Bancorp

NB Bancorp, Inc. focuses on operating as a bank holding company for Needham Bank that provides various banking products and services in Greater Boston metropolitan area and surrounding communities in Massachusetts, eastern Connecticut, southern New Hampshire, and Rhode Island. The company offers various deposits, including certificate of deposit, individual retirement, money market, savings, NOW, demand deposit, and interest-bearing and noninterest-bearing checking accounts; and commercial real estate and multifamily, one- to four-family residential real estate, construction and land development, commercial and industrial, and consumer loans, as well as home equity loans and lines of credit. It also invests in securities consisting of U.S. treasury and federal agency securities, government-sponsored residential mortgage-backed securities, municipal bonds, and corporate bonds. The company was founded in 1892 and is based in Needham, Massachusetts.