Head to Head Contrast: NBT Bancorp (NASDAQ:NBTB) versus Freedom Financial (OTCMKTS:FDVA)

Freedom Financial (OTCMKTS:FDVA) and NBT Bancorp (NASDAQ:NBTB) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Institutional & Insider Ownership

58.5% of NBT Bancorp shares are held by institutional investors. 13.3% of Freedom Financial shares are held by insiders. Comparatively, 3.0% of NBT Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Freedom Financial	7.83%	6.07%	0.48%
NBT Bancorp	17.24%	10.35%	1.17%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Freedom Financial and NBT Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freedom Financial	0	0	0	0	0.00
NBT Bancorp	0	3	2	1	2.67

NBT Bancorp has a consensus price target of $51.25, indicating a potential upside of 16.86%. Given NBT Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe NBT Bancorp is more favorable than Freedom Financial.

Volatility and Risk

Freedom Financial has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500. Comparatively, NBT Bancorp has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.

Earnings & Valuation

This table compares Freedom Financial and NBT Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freedom Financial	$66.41 million	1.28	$4.71 million	$0.71	16.82
NBT Bancorp	$657.88 million	3.49	$140.64 million	$3.00	14.62

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

Summary

NBT Bancorp beats Freedom Financial on 13 of the 15 factors compared between the two stocks.

About Freedom Financial

Freedom Financial Holdings, Inc. operates as the bank holding company for The Freedom Bank of Virginia that provides commercial banking, personal banking, and mortgage banking solutions. The company offers personal and business checking accounts, interest bearing business savings accounts, money market accounts, personal savings accounts, certificates of deposits, and IRAs, as well as insured cash sweep and certificate of deposit account registry services. It also provides business term, personal, and mortgage loans; commercial lines of credit; commercial real estate mortgage and small business lending services; home equity lines; and credit cards. In addition, the company offers treasury management, online and mobile banking, remote deposit capture, ACH, and wire transfer services; business valuation, bank-at-work, and merchant services; and prestige banking services. The company was founded in 2001 and is headquartered in Fairfax, Virginia.

About NBT Bancorp

NBT Bancorp Inc., a financial holding company, provides commercial banking, retail banking, and wealth management services. Its deposit products include demand deposit, savings, negotiable order of withdrawal, money market deposit, and certificate of deposit accounts. The company's loan portfolio comprises indirect and direct consumer, home equity, mortgages, business banking loans, and commercial loans; commercial and industrial, commercial real estate, agricultural, and commercial construction loans; and residential real estate loans. It also provides trust and investment services; financial planning and life insurance services; and retirement plan administration and recordkeeping services. In addition, the company offers insurance products comprising personal property and casualty, business liability, and commercial insurance, as well as other products and services through 24-hour online, mobile, and telephone channels that enable customers to check balances, make deposits, transfer funds, pay bills, access statements, apply for loans, and access various other products and services. Further, it operates as a property management and passive investment company, as well as investment advisor that provides investment management and financial consulting services. The company operates in upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, southern Maine, and central and northwestern Connecticut. NBT Bancorp Inc. was founded in 1856 and is headquartered in Norwich, New York.