Northeast Community Bancorp (NASDAQ:NECB) and Freddie Mac (OTCMKTS:FMCC) Head to Head Review

Freddie Mac (OTCMKTS:FMCC) and Northeast Community Bancorp (NASDAQ:NECB) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Institutional & Insider Ownership

53.2% of Northeast Community Bancorp shares are owned by institutional investors. 0.1% of Freddie Mac shares are owned by insiders. Comparatively, 7.1% of Northeast Community Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Freddie Mac and Northeast Community Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freddie Mac	1	2	1	1	2.40
Northeast Community Bancorp	0	2	1	1	2.75

Freddie Mac presently has a consensus target price of $11.12, indicating a potential upside of 201.49%. Northeast Community Bancorp has a consensus target price of $29.50, indicating a potential upside of 7.62%. Given Freddie Mac’s higher possible upside, equities research analysts plainly believe Freddie Mac is more favorable than Northeast Community Bancorp.

Profitability

This table compares Freddie Mac and Northeast Community Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freddie Mac	9.58%	-90.29%	0.37%
Northeast Community Bancorp	27.67%	12.00%	2.05%

Earnings & Valuation

This table compares Freddie Mac and Northeast Community Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freddie Mac	$129.82 billion	0.02	$10.73 billion	$0.01	369.00
Northeast Community Bancorp	$158.21 million	2.39	$44.41 million	$3.12	8.79

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

Risk & Volatility

Freddie Mac has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, Northeast Community Bancorp has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Summary

Northeast Community Bancorp beats Freddie Mac on 8 of the 13 factors compared between the two stocks.

About Freddie Mac

Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment purchases, securitizes, and guarantees single-family loans; and manages single-family mortgage credit and market risk, as well as manages mortgage-related investments portfolio, single-family securitization activities, and treasury functions. This segment serves mortgage banking companies, commercial banks, regional banks, community banks, credit unions, housing finance agencies, savings institutions, and non-depository financial institutions. The Multifamily segment engages in the purchase, securitization, and guarantee of multifamily loans; issuance of multifamily K certificates; manages multifamily mortgage credit and market risk; and invests in multifamily loans and mortgage-related securities. It serves banks and other financial institutions, insurance companies, money managers, hedge funds, pension funds, state and local governments, and broker dealers. Federal Home Loan Mortgage Corporation incorporated in 1970 and is headquartered in McLean, Virginia.

About Northeast Community Bancorp

Northeast Community Bancorp, Inc. operates as the holding company for NorthEast Community Bank that provides financial services for individuals and businesses. It accepts various deposit instruments, including checking accounts, money market accounts, regular savings accounts, and non-interest bearing demand accounts, as well as certificates of deposits. The company also offers construction, commercial and industrial, multifamily and mixed-use real estate, non-residential real estate loans, and consumer loans. In addition, it invests in various types of liquid assets, including U.S. Treasury obligations, municipal securities, deposits at the Federal Home Loan Bank of New York, and certificates of deposit of federally insured institutions, as well as securities of various federal agencies, and of state and municipal governments. Further, the company offers financial planning and investment advisory services; and life insurance products and fixed-rate annuities. It operates full-service branches located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts; and loan production offices located in White Plains, New York, and New City counties in New York and Danvers, Massachusetts. Northeast Community Bancorp, Inc. was founded in 1934 and is headquartered in White Plains, New York.