Critical Comparison: Northpointe Bancshares (NPB) versus Its Peers

Northpointe Bancshares (NYSE:NPB) is one of 69 publicly-traded companies in the “FIN – SVGS & LOAN” industry, but how does it contrast to its competitors? We will compare Northpointe Bancshares to similar companies based on the strength of its earnings, institutional ownership, dividends, profitability, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a summary of current recommendations and price targets for Northpointe Bancshares and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northpointe Bancshares	1	1	2	0	2.25
Northpointe Bancshares Competitors	534	1656	846	43	2.13

Northpointe Bancshares currently has a consensus target price of $18.92, indicating a potential upside of 19.39%. As a group, “FIN – SVGS & LOAN” companies have a potential upside of 17.61%. Given Northpointe Bancshares’ stronger consensus rating and higher possible upside, analysts clearly believe Northpointe Bancshares is more favorable than its competitors.

Insider & Institutional Ownership

50.0% of shares of all “FIN – SVGS & LOAN” companies are held by institutional investors. 18.4% of Northpointe Bancshares shares are held by insiders. Comparatively, 8.9% of shares of all “FIN – SVGS & LOAN” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Northpointe Bancshares pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. Northpointe Bancshares pays out 6.4% of its earnings in the form of a dividend. As a group, “FIN – SVGS & LOAN” companies pay a dividend yield of 2.8% and pay out 29.1% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Northpointe Bancshares and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Northpointe Bancshares	$390.45 million	$55.16 million	10.09
Northpointe Bancshares Competitors	$210.92 million	$34.74 million	16.46

Northpointe Bancshares has higher revenue and earnings than its competitors. Northpointe Bancshares is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Northpointe Bancshares and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northpointe Bancshares	N/A	N/A	N/A
Northpointe Bancshares Competitors	12.00%	4.85%	0.77%

About Northpointe Bancshares

Northpointe Bancshares, Inc. operates as a bank holding company. It offers a nationwide mortgage purchase program, residential mortgage loans, digital deposit banking to retail customers and custodial deposit services. The company was founded by Charles A. Williams in 1998 and is headquartered in Grand Rapids, MI.