Critical Review: Northpointe Bancshares (NPB) and Its Competitors

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

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 28.5% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Northpointe Bancshares and its peers, 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	543	1688	852	43	2.13

Northpointe Bancshares presently has a consensus target price of $18.92, suggesting a potential upside of 15.91%. As a group, “FIN – SVGS & LOAN” companies have a potential upside of 16.27%. Given Northpointe Bancshares’ peers higher possible upside, analysts plainly believe Northpointe Bancshares has less favorable growth aspects than its peers.

Insider and Institutional Ownership

50.0% of shares of all “FIN – SVGS & LOAN” companies are owned by institutional investors. 18.4% of Northpointe Bancshares shares are owned by company insiders. Comparatively, 8.8% of shares of all “FIN – SVGS & LOAN” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northpointe Bancshares	16.09%	12.43%	1.16%
Northpointe Bancshares Competitors	12.22%	5.07%	0.78%

Earnings and Valuation

This table compares Northpointe Bancshares and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Northpointe Bancshares	$220.22 million	$55.16 million	10.39
Northpointe Bancshares Competitors	$208.07 million	$34.74 million	14.36

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

Summary

Northpointe Bancshares beats its peers on 9 of the 14 factors compared.

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.