Analyzing Bogota Financial (NASDAQ:BSBK) & Arrow Financial (NASDAQ:AROW)

Arrow Financial (NASDAQ:AROW) and Bogota Financial (NASDAQ:BSBK) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Profitability

This table compares Arrow Financial and Bogota Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arrow Financial	14.65%	9.46%	0.87%
Bogota Financial	1.08%	0.35%	0.05%

Analyst Ratings

This is a summary of recent recommendations and price targets for Arrow Financial and Bogota Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arrow Financial	0	2	1	0	2.33
Bogota Financial	0	1	0	0	2.00

Arrow Financial currently has a consensus price target of $30.75, indicating a potential downside of 4.89%. Given Arrow Financial’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Arrow Financial is more favorable than Bogota Financial.

Institutional & Insider Ownership

46.7% of Arrow Financial shares are held by institutional investors. Comparatively, 11.6% of Bogota Financial shares are held by institutional investors. 3.3% of Arrow Financial shares are held by company insiders. Comparatively, 3.8% of Bogota Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Arrow Financial has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Bogota Financial has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500.

Valuation and Earnings

This table compares Arrow Financial and Bogota Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arrow Financial	$223.07 million	2.38	$29.71 million	$2.07	15.62
Bogota Financial	$43.10 million	2.59	-$2.17 million	$0.05	172.28

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

Summary

Arrow Financial beats Bogota Financial on 11 of the 14 factors compared between the two stocks.

About Arrow Financial

Arrow Financial Corporation, a bank holding company, provides commercial and consumer banking, and financial products and services. The company’s deposit products include demand deposits, interest-bearing checking accounts, savings deposits, time deposits, and other time deposits. Its lending activities comprise commercial loans, such as term loans, time notes, and lines of credit; and commercial real estate loans to finance real estate purchases, refinancing, expansions, and enhancement to commercial properties, as well as commercial construction and land development loans to finance projects. The company’s lending activities also include consumer installment loans to finance personal expenditures, personal lines of credit, overdraft protection, and automobile loans; and residential real estate loans, fixed home equity loans, and home equity lines of credit for consumers to finance home improvements, debt consolidation, education, and other uses. In addition, it maintains an indirect lending program. Further, the company provides retirement planning, trust, and estate administration services for individuals, as well as pension, profit-sharing, and employee benefit plan administration services for corporations. Additionally, it offers insurance agency services comprising group health care policies and life insurance, and property and casualty insurance products; and investment advisory services to its proprietary mutual funds, as well as holds a real estate investment trust. It operates in the northeastern region of New York State in Warren, Washington, Saratoga, Essex, Clinton, Rensselaer, Albany, and Schenectady counties. Arrow Financial Corporation was founded in 1851 and is headquartered in Glens Falls, New York.

About Bogota Financial

Bogota Financial Corp. operates as the bank holding company for Bogota Savings Bank that provides banking products and services in the United States. It offers deposit accounts, including demand accounts, savings accounts, money market accounts, and certificate of deposit accounts. The company also provides one-to four-family residential real estate loans, and commercial real estate and multi-family loans; consumer loans, such as home equity loans and lines of credit; commercial and industrial loans; and construction loans; and buys, sells, and holds investment securities. It operates through various offices located in Bogota, Hasbrouck Heights, Newark, Oak Ridge, Parsippany, and Teaneck, as well as through a loan production office in Spring Lake, New Jersey. The company was founded in 1893 and is based in Teaneck, New Jersey. Bogota Financial Corp. operates as a subsidiary of Bogota Financial, MHC.