Flagstar Bank, National Association (NYSE:FLG – Get Free Report) and Nicolet Bankshares (NYSE:NIC – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.
Insider & Institutional Ownership
67.9% of Flagstar Bank, National Association shares are owned by institutional investors. Comparatively, 43.1% of Nicolet Bankshares shares are owned by institutional investors. 19.4% of Flagstar Bank, National Association shares are owned by insiders. Comparatively, 16.4% of Nicolet Bankshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Flagstar Bank, National Association and Nicolet Bankshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Flagstar Bank, National Association | -7.06% | -3.80% | -0.30% |
| Nicolet Bankshares | 26.39% | 12.08% | 1.61% |
Volatility & Risk
Dividends
Flagstar Bank, National Association pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Nicolet Bankshares pays an annual dividend of $1.28 per share and has a dividend yield of 1.0%. Flagstar Bank, National Association pays out -4.1% of its earnings in the form of a dividend. Nicolet Bankshares pays out 13.7% 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. Nicolet Bankshares has increased its dividend for 2 consecutive years. Nicolet Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Flagstar Bank, National Association and Nicolet Bankshares”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flagstar Bank, National Association | $6.35 billion | 0.88 | -$1.12 billion | ($0.97) | -13.94 |
| Nicolet Bankshares | $520.63 million | 3.73 | $124.06 million | $9.34 | 14.06 |
Nicolet Bankshares has lower revenue, but higher earnings than Flagstar Bank, National Association. Flagstar Bank, National Association is trading at a lower price-to-earnings ratio than Nicolet Bankshares, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Flagstar Bank, National Association and Nicolet Bankshares, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flagstar Bank, National Association | 2 | 5 | 5 | 0 | 2.25 |
| Nicolet Bankshares | 0 | 1 | 3 | 0 | 2.75 |
Flagstar Bank, National Association currently has a consensus price target of $14.14, suggesting a potential upside of 4.57%. Nicolet Bankshares has a consensus price target of $155.33, suggesting a potential upside of 18.28%. Given Nicolet Bankshares’ stronger consensus rating and higher probable upside, analysts plainly believe Nicolet Bankshares is more favorable than Flagstar Bank, National Association.
Summary
Nicolet Bankshares beats Flagstar Bank, National Association on 11 of the 17 factors compared between the two stocks.
About Flagstar Bank, National Association
Flagstar Financial, Inc. operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company’s deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit. Its loan products comprise multi-family loans; commercial real estate loans; acquisition, development, and construction loans; commercial and industrial loans; one-to-four family loans; specialty finance loans and leases; warehouse loans; and other loans, such as home equity lines of credit, boat and recreational vehicle indirect lending, point of sale consumer loans, and other consumer loans, including overdraft loans. The company offers cash management products; non-deposit investment and insurance products; and online banking, mobile banking, and bank-by-phone services. It primarily serves individuals, small and mid-size businesses, and professional associations. The company was formerly known as New York Community Bancorp, Inc. and changed its name to Flagstar Financial, Inc. in October 2024. Flagstar Financial, Inc. was founded in 1859 and is headquartered in Hicksville, New York.
About Nicolet Bankshares
Nicolet Bankshares, Inc. operates as the bank holding company for Nicolet National Bank that provides banking products and services for businesses and individuals in Wisconsin and Michigan. The company accepts checking, savings, and money market accounts; various certificates of deposit; and individual retirement accounts. It also offers commercial loans, including commercial, industrial, and business loans and lines of credit; commercial real estate loans; agricultural (AG) production and AG real estate loans; commercial real estate investment real estate loans; construction and land development loans; residential real estate loans, such as residential first lien and junior lien mortgages, home equity loans, lines of credit, and residential construction loans; and consumer loans. In addition, the company provides cash management, international banking, personal brokerage, safe deposit boxes, and trust and fiduciary services, as well as wealth management and retirement plan services. Further, it offers mortgage refinancing; online services, such as commercial, retail, and trust online banking; automated bill payment, mobile banking deposits and account access, and remote deposit capture services; and other services consisting of wire transfers, debit cards, credit cards, pre-paid gift cards, direct deposits, and official bank checks, as well as facilitates crop insurance products. The company was formerly known as Green Bay Financial Corporation and changed its name to Nicolet Bankshares, Inc. in March 2002. The company was incorporated in 2000 and is headquartered in Green Bay, Wisconsin.
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