Financial Comparison: Financial Institutions (NASDAQ:FISI) versus Greene County Bancorp (NASDAQ:GCBC)

Greene County Bancorp (NASDAQ:GCBC) and Financial Institutions (NASDAQ:FISI) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Dividends

Greene County Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 1.2%. Financial Institutions pays an annual dividend of $1.28 per share and has a dividend yield of 3.1%. Greene County Bancorp pays out 18.3% of its earnings in the form of a dividend. Financial Institutions pays out 31.8% 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. Greene County Bancorp has increased its dividend for 11 consecutive years and Financial Institutions has increased its dividend for 1 consecutive years.

Valuation & Earnings

This table compares Greene County Bancorp and Financial Institutions”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Greene County Bancorp	$92.58 million	6.58	$41.02 million	$2.41	14.85
Financial Institutions	$254.18 million	3.15	$74.87 million	$4.03	10.09

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

Insider & Institutional Ownership

13.4% of Greene County Bancorp shares are owned by institutional investors. Comparatively, 60.5% of Financial Institutions shares are owned by institutional investors. 4.0% of Greene County Bancorp shares are owned by insiders. Comparatively, 2.4% of Financial Institutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Greene County Bancorp and Financial Institutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Greene County Bancorp	0	0	1	0	3.00
Financial Institutions	0	2	2	0	2.50

Financial Institutions has a consensus price target of $45.00, indicating a potential upside of 10.70%. Given Financial Institutions’ higher possible upside, analysts plainly believe Financial Institutions is more favorable than Greene County Bancorp.

Risk and Volatility

Greene County Bancorp has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, Financial Institutions has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Profitability

This table compares Greene County Bancorp and Financial Institutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Greene County Bancorp	28.14%	15.60%	1.31%
Financial Institutions	21.78%	13.45%	1.31%

About Greene County Bancorp

Greene County Bancorp, Inc. operates as a holding company for The Bank of Greene County that provides various financial services in the United States. The company's deposit products include savings, NOW accounts, money market accounts, certificates of deposit, non-interest bearing checking accounts, and individual retirement accounts. Its loan portfolio consists of residential, construction and land, and multifamily loans; commercial real estate mortgage loans; consumer loans, such as loans on new and used automobiles, personal loans, and home equity loans, as well as other consumer installment loans, including passbook loans, unsecured home improvement loans, recreational vehicle loans, and deposit account overdrafts; and commercial loans. The company was founded in 1889 and is based in Catskill, New York. Greene County Bancorp, Inc. is a subsidiary of Greene County Bancorp, MHC.

About Financial Institutions

Financial Institutions, Inc. operates as a holding company for the Five Star Bank, a chartered bank that provides banking and financial services to individuals, municipalities, and businesses in New York. The company provides checking and savings account programs, including money market accounts, certificates of deposit, sweep investments, and individual retirement and other qualified plan accounts, as well as NOW accounts. Its loan products include term loans and lines of credit; short and medium-term commercial loans for working capital, business expansion, and purchase of equipment; commercial business loans to the agricultural industry; commercial mortgage loans; one-to-four family residential mortgage loans, home improvement loans, closed-end home equity loans, and home equity lines of credit; and consumer loans, such as automobile, secured installment, and personal loans. The company offers personal insurance products, including automobile, homeowners, boat, recreational vehicle, landlord, and umbrella coverage; commercial insurance comprising property, liability, automobile, inland marine, workers compensation, bonds, crop, and umbrella insurance products; and financial services, such as life and disability insurance, medicare supplements, long-term care, annuities, mutual funds, and retirement programs. In addition, it offers customized investment advisory, wealth management, investment consulting, and retirement plan services, as well as operates a real estate investment trust that holds residential mortgages and commercial real estate loans. Financial Institutions, Inc. was founded in 1817 and is headquartered in Warsaw, New York.