Parke Bancorp (NASDAQ:PKBK) and First Northwest Bancorp (NASDAQ:FNWB) Financial Comparison

Parke Bancorp (NASDAQ:PKBK) and First Northwest Bancorp (NASDAQ:FNWB) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Profitability

This table compares Parke Bancorp and First Northwest Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Parke Bancorp	30.55%	13.91%	2.08%
First Northwest Bancorp	-0.04%	0.63%	0.05%

Earnings & Valuation

This table compares Parke Bancorp and First Northwest Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Parke Bancorp	$146.08 million	2.63	$37.78 million	$3.97	8.22
First Northwest Bancorp	$118.64 million	0.78	-$4.19 million	($0.01)	-968.50

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

Institutional and Insider Ownership

49.7% of Parke Bancorp shares are held by institutional investors. Comparatively, 66.1% of First Northwest Bancorp shares are held by institutional investors. 13.0% of Parke Bancorp shares are held by company insiders. Comparatively, 4.1% of First Northwest Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Parke Bancorp and First Northwest Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Parke Bancorp	0	0	1	0	3.00
First Northwest Bancorp	0	1	1	1	3.00

First Northwest Bancorp has a consensus price target of $14.00, indicating a potential upside of 44.55%. Given First Northwest Bancorp’s higher possible upside, analysts plainly believe First Northwest Bancorp is more favorable than Parke Bancorp.

Risk and Volatility

Parke Bancorp has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, First Northwest Bancorp has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.

Summary

Parke Bancorp beats First Northwest Bancorp on 9 of the 13 factors compared between the two stocks.

About Parke Bancorp

Parke Bancorp, Inc. is the bank holding company for Parke Bank, a community bank headquartered in Washington Township, New Jersey. Founded in 1999, the company serves customers in southern New Jersey and the greater Philadelphia area. Parke Bank offers commercial and consumer banking services, including business and real estate lending, residential mortgage loans, deposit accounts, and online banking. Its lending activities include financing for commercial properties and construction, as well as loans to businesses and individuals.

About First Northwest Bancorp

First Northwest Bancorp is a bank holding company headquartered in Port Angeles, Washington. It operates through First Fed, a community bank that serves customers across Western Washington, including the Olympic Peninsula and Puget Sound region. First Fed provides personal and business banking services, including deposit accounts, residential mortgages, commercial real estate and business loans, and other consumer and commercial lending. The bank also offers financial services such as cash management and wealth management.