Reviewing OceanFirst Financial (NASDAQ:OCFC) & Patriot National Bancorp (NASDAQ:PNBK)

OceanFirst Financial (NASDAQ:OCFC) and Patriot National Bancorp (NASDAQ:PNBK) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Profitability

This table compares OceanFirst Financial and Patriot National Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OceanFirst Financial	5.28%	6.16%	0.66%
Patriot National Bancorp	-3.47%	-2.94%	-0.22%

Institutional and Insider Ownership

71.0% of OceanFirst Financial shares are held by institutional investors. Comparatively, 39.3% of Patriot National Bancorp shares are held by institutional investors. 5.4% of OceanFirst Financial shares are held by company insiders. Comparatively, 12.8% of Patriot National Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares OceanFirst Financial and Patriot National Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OceanFirst Financial	$687.16 million	2.53	$70.98 million	$0.72	25.00
Patriot National Bancorp	$58.36 million	1.76	-$12.71 million	($0.07)	-12.36

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

Volatility and Risk

OceanFirst Financial has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Patriot National Bancorp has a beta of -0.6, indicating that its stock price is 160% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for OceanFirst Financial and Patriot National Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OceanFirst Financial	0	4	0	0	2.00
Patriot National Bancorp	1	0	0	0	1.00

OceanFirst Financial currently has a consensus target price of $19.75, suggesting a potential upside of 9.72%. Given OceanFirst Financial’s stronger consensus rating and higher probable upside, analysts clearly believe OceanFirst Financial is more favorable than Patriot National Bancorp.

Summary

OceanFirst Financial beats Patriot National Bancorp on 12 of the 13 factors compared between the two stocks.

About OceanFirst Financial

OceanFirst Financial Corp. is the holding company for OceanFirst Bank, a community and regional bank headquartered in Toms River, New Jersey. The bank traces its roots to 1902, when it was established as a local savings institution in Point Pleasant, New Jersey. OceanFirst provides personal and business banking services, including deposit accounts, residential mortgages, commercial real estate and business loans, and cash management services. It also offers related financial services through its banking and wealth management operations.

About Patriot National Bancorp

Patriot National Bancorp, Inc. is the bank holding company for Patriot Bank, N.A., a community bank headquartered in Stamford, Connecticut. The company was established in 1994 and focuses on serving consumers, businesses and professionals. Through its bank subsidiary, Patriot National Bancorp offers deposit accounts and banking services, along with commercial and consumer lending. Its lending activities include financing for businesses and commercial real estate, as well as residential and other consumer loans.