Northfield Bancorp (NASDAQ: NFBK) and Meta Financial Group (NASDAQ:CASH) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
This is a summary of recent ratings and recommmendations for Northfield Bancorp and Meta Financial Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Meta Financial Group||0||0||4||0||3.00|
Northfield Bancorp currently has a consensus target price of $17.50, suggesting a potential upside of 7.69%. Meta Financial Group has a consensus target price of $116.25, suggesting a potential upside of 6.16%. Given Northfield Bancorp’s higher probable upside, equities analysts clearly believe Northfield Bancorp is more favorable than Meta Financial Group.
Earnings and Valuation
This table compares Northfield Bancorp and Meta Financial Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Northfield Bancorp||$144.51 million||5.52||$24.76 million||$0.73||22.26|
|Meta Financial Group||$280.27 million||3.79||$44.91 million||$7.05||15.53|
Meta Financial Group has higher revenue and earnings than Northfield Bancorp. Meta Financial Group is trading at a lower price-to-earnings ratio than Northfield Bancorp, indicating that it is currently the more affordable of the two stocks.
This table compares Northfield Bancorp and Meta Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Meta Financial Group||15.40%||15.08%||1.39%|
Northfield Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.5%. Meta Financial Group pays an annual dividend of $0.52 per share and has a dividend yield of 0.5%. Northfield Bancorp pays out 54.8% of its earnings in the form of a dividend. Meta Financial Group pays out 7.4% 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.
Risk & Volatility
Northfield Bancorp has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, Meta Financial Group has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.
Institutional and Insider Ownership
52.9% of Northfield Bancorp shares are held by institutional investors. Comparatively, 77.6% of Meta Financial Group shares are held by institutional investors. 9.3% of Northfield Bancorp shares are held by insiders. Comparatively, 5.4% of Meta Financial Group 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.
Meta Financial Group beats Northfield Bancorp on 10 of the 16 factors compared between the two stocks.
About Northfield Bancorp
Northfield Bancorp, Inc. operates as the bank holding company for Northfield Bank that provides various banking products and services primarily to individuals and corporate customers. It accepts various deposits products, including transaction accounts comprising negotiable orders of withdrawal accounts and non-interest bearing checking accounts; savings accounts, such as money market, passbook, and statement savings; certificates of deposit consisting of individual retirement accounts; and brokered deposits. The company also offers various loans comprising multifamily and other commercial real estate loans, construction and land loans, commercial and industrial loans, one-to-four family residential real estate loans, and home equity loans and lines of credit. In addition, it purchases various investment securities, such as mortgage-backed securities and corporate bonds; and deposits funds in other financial institutions, as well as holds primarily mortgage loans and other investments. The company operates through its home office located in Staten Island, New York; operations center located in Woodbridge, New Jersey; 38 additional branch offices located in New York and New Jersey; and a lending office located in Brooklyn, New York. Northfield Bancorp, Inc. was founded in 1887 and is based in Woodbridge, New Jersey.
About Meta Financial Group
Meta Financial Group, Inc. operates as the holding company for MetaBank that offers various banking products and services to individuals, small businesses, financial institutions, and other businesses. It provides various deposit products, such as statement savings accounts, money market savings accounts, and NOW and regular checking accounts, as well as deposits related to prepaid cards, which primarily include checking accounts and certificate accounts. The company's loan portfolio comprises one-to-four family residential mortgage, commercial and multi-family real estate, agricultural operations and real estate, construction, consumer, commercial operating, and premium finance loans. It also issues prepaid cards and consumer credit products; sponsor automatic teller machines into various debit networks; and offers tax refund transfer and other payment industry products and services. The company operates a total of 10 full-service branch banking offices in Storm Lake and Des Moines, Iowa, as well as Brookings and Sioux Falls, South Dakota; one non-retail service branch in Memphis, Tennessee; and 7 non-branch offices located in South Dakota, Texas, California, Kentucky, and Pennsylvania. Meta Financial Group, Inc. was founded in 1954 and is headquartered in Sioux Falls, South Dakota.
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