NB Bancorp (NASDAQ:NBBK – Get Free Report) and Hawthorn Bancshares (NASDAQ:HWBK – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.
Dividends
NB Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. Hawthorn Bancshares pays an annual dividend of $0.84 per share and has a dividend yield of 2.5%. NB Bancorp pays out 20.4% of its earnings in the form of a dividend. Hawthorn Bancshares pays out 23.1% 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. Hawthorn Bancshares has increased its dividend for 5 consecutive years. Hawthorn Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a summary of recent ratings for NB Bancorp and Hawthorn Bancshares, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NB Bancorp | 1 | 2 | 1 | 0 | 2.00 |
| Hawthorn Bancshares | 0 | 1 | 0 | 0 | 2.00 |
Volatility & Risk
NB Bancorp has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Hawthorn Bancshares has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500.
Valuation & Earnings
This table compares NB Bancorp and Hawthorn Bancshares”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NB Bancorp | $235.65 million | 3.82 | $50.30 million | $1.37 | 14.55 |
| Hawthorn Bancshares | $111.97 million | 2.06 | $23.80 million | $3.64 | 9.20 |
NB Bancorp has higher revenue and earnings than Hawthorn Bancshares. Hawthorn 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.
Profitability
This table compares NB Bancorp and Hawthorn Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NB Bancorp | 13.81% | 8.75% | 1.15% |
| Hawthorn Bancshares | 22.14% | 15.24% | 1.33% |
Insider and Institutional Ownership
30.7% of Hawthorn Bancshares shares are held by institutional investors. 5.1% of NB Bancorp shares are held by company insiders. Comparatively, 22.7% of Hawthorn Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Hawthorn Bancshares beats NB Bancorp on 9 of the 16 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 Hawthorn Bancshares
Hawthorn Bancshares, Inc. operates as the bank holding company for Hawthorn Bank that provides various banking services in the United States. It accepts checking, savings, money market, individual retirement, and other time deposit accounts, as well as certificates of deposit. The company also offers commercial and industrial, single payment personal, installment, commercial and residential real estate, and consumer loans, as well as equipment, operating, and small business administration loans; and debit and credit cards. In addition, it provides trust services that include estate planning, investment, and asset management services; and cash management, safety deposit box, brokerage, and Internet banking services. Hawthorn Bancshares, Inc. was founded in 1865 and is headquartered in Jefferson City, Missouri.
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