NB Bancorp (NASDAQ:NBBK) and CoastalSouth Bancshares (NYSE:COSO) Financial Comparison

NB Bancorp (NASDAQ:NBBK) and CoastalSouth Bancshares (NYSE:COSO) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.

Profitability

This table compares NB Bancorp and CoastalSouth Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NB Bancorp	14.27%	9.13%	1.10%
CoastalSouth Bancshares	19.59%	10.57%	1.18%

Dividends

NB Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.3%. CoastalSouth Bancshares pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. NB Bancorp pays out 18.5% of its earnings in the form of a dividend. CoastalSouth Bancshares pays out 9.0% 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.

Earnings & Valuation

This table compares NB Bancorp and CoastalSouth Bancshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NB Bancorp	$259.05 million	3.74	$50.30 million	$1.51	14.66
CoastalSouth Bancshares	$87.04 million	3.66	$24.89 million	$2.22	12.00

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for NB Bancorp and CoastalSouth Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NB Bancorp	0	2	2	0	2.50
CoastalSouth Bancshares	1	0	2	1	2.75

NB Bancorp presently has a consensus price target of $25.50, indicating a potential upside of 15.23%. CoastalSouth Bancshares has a consensus price target of $31.50, indicating a potential upside of 18.27%. Given CoastalSouth Bancshares’ stronger consensus rating and higher possible upside, analysts clearly believe CoastalSouth Bancshares is more favorable than NB Bancorp.

Summary

CoastalSouth Bancshares beats NB Bancorp on 8 of the 13 factors compared between the two stocks.

About NB Bancorp

NB Bancorp, Inc. focuses on operating as a bank holding company for Needham Bank that provides various banking products and services in Greater Boston metropolitan area and surrounding communities in Massachusetts, eastern Connecticut, southern New Hampshire, and Rhode Island. The company offers various deposits, including certificate of deposit, individual retirement, money market, savings, NOW, demand deposit, and interest-bearing and noninterest-bearing checking accounts; and commercial real estate and multifamily, one- to four-family residential real estate, construction and land development, commercial and industrial, and consumer loans, as well as home equity loans and lines of credit. It also invests in securities consisting of U.S. treasury and federal agency securities, government-sponsored residential mortgage-backed securities, municipal bonds, and corporate bonds. The company was founded in 1892 and is based in Needham, Massachusetts.

About CoastalSouth Bancshares

CoastalSouth Bancshares, Inc. is a bank holding company headquartered in Atlanta, Georgia. Through our wholly owned subsidiary, Coastal States Bank, a South Carolina state-chartered commercial bank, we offer a full range of banking products and services designed for businesses, real estate professionals, and consumers looking for a deep and meaningful relationship with their bank. Today, we have a community banking presence in some of the fastest growing and most business-friendly markets in the U.S., namely the Lowcountry of South Carolina (Hilton Head Island, Bluffton, and Beaufort), nearby Savannah, Georgia, and the Atlanta, Georgia market. — In addition to our traditional community banking operations, we operate four specialty lines of business that provide scalability and diversification: • Senior Housing Lending – focuses on lending to operators across the spectrum of senior care, with an emphasis on assisted living; • Marine Lending – focuses on consumer loans primarily to high-net-worth borrowers secured by yachts and high-end sport fishing vessels; • Government Guaranteed Lending – focuses on origination of small business and other loans guaranteed by the SBA and USDA; and • Mortgage Banker Finance – focuses on mortgage warehouse lending to mortgage originators. By combining the relationship-based focus of a community bank with our specialty lines of business, we believe we can capitalize on the substantial growth opportunities available in our markets, particularly given the scarcity of community banks between $1.5 billion and $5.0 billion in total assets. Our principal executive offices are located in Atlanta, Georgia.