Analyzing HMN Financial (NASDAQ:HMNF) & Northeast Indiana Bancorp (NASDAQ:NIDB)

Northeast Indiana Bancorp (OTCMKTS:NIDB) and HMN Financial (NASDAQ:HMNF) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Northeast Indiana Bancorp and HMN Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northeast Indiana Bancorp 0 0 0 0 N/A
HMN Financial 0 0 0 0 N/A

Valuation and Earnings

This table compares Northeast Indiana Bancorp and HMN Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Northeast Indiana Bancorp $17.23 million 2.55 $4.17 million N/A N/A
HMN Financial $38.10 million 2.61 $8.24 million N/A N/A

HMN Financial has higher revenue and earnings than Northeast Indiana Bancorp.

Profitability

This table compares Northeast Indiana Bancorp and HMN Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northeast Indiana Bancorp 23.24% N/A N/A
HMN Financial 21.80% 10.19% 1.16%

Volatility & Risk

Northeast Indiana Bancorp has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500. Comparatively, HMN Financial has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.

Insider and Institutional Ownership

41.2% of HMN Financial shares are owned by institutional investors. 19.8% of Northeast Indiana Bancorp shares are owned by company insiders. Comparatively, 8.3% of HMN Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Northeast Indiana Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.8%. HMN Financial does not pay a dividend.

Summary

HMN Financial beats Northeast Indiana Bancorp on 7 of the 11 factors compared between the two stocks.

Northeast Indiana Bancorp Company Profile

Northeast Indiana Bancorp, Inc. operates as the bank holding company for First Federal Savings Bank that provides various banking and financial advisory services. It offers various personal products, including checking accounts, savings accounts, certificates of deposit, retirement accounts, health savings accounts, and direct deposits. The company's loan portfolio comprises mortgage loans, such as home purchases, refinances, new construction loans, and home equity/home improvement loans; installment loans consisting of auto loans, personal loans, short term notes, and savings account loans, as well as RV, ATV, and boat loans; and commercial loans, including lines of credit, letters of credit, equipment financing, and construction loans, as well as commercial loans comprising revolving line of credit, term loans, real estate loans, letter of credit, and small business administration loans. It also provides debit and credit cards, safe deposit boxes, online banking services, merchant services, and cash management services, as well as treasury management and merchant deposit capture services. In addition, the company offers various financial services to individual and corporate clients, including brokerage accounts, retail funds, and wealth management products, as well as insurance products and retirement plans. Northeast Indiana Bancorp, Inc. operates three full service locations in Huntington; one full service location in Warsaw; and two full service locations in Fort Wayne, Indiana. The company is based in Huntington, Indiana.

HMN Financial Company Profile

HMN Financial, Inc. operates as a bank holding company for Home Federal Savings Bank that provides retail banking products and services. The company offers various deposit accounts, such as savings, negotiable order of withdrawal, non-interest bearing checking, money market, and certificate accounts, including individual retirement accounts. It also provides single family residential loans; commercial real estate and multi-family mortgage loans; construction and commercial business loans; and consumer loans, such as home equity, automobile, recreational vehicle, mobile home, and lot loans, as well as loans secured by deposit accounts, and other loans for household and personal purposes. In addition, the company offers financial planning products and services; and invests in mortgage-backed and related securities, the United States government agency obligations, and other permissible investments. The company operates through 14 full service branches located in Minnesota and Iowa; and 2 loan production offices located in Minnesota and Wisconsin. HMN Financial, Inc. was founded in 1934 and is based in Rochester, Minnesota.

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