First Savings Financial Group (FSFG) vs. Northrim BanCorp (NRIM) Critical Contrast

First Savings Financial Group (NASDAQ:FSFG) and Northrim BanCorp (NASDAQ:NRIM) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for First Savings Financial Group and Northrim BanCorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Savings Financial Group 0 0 1 0 3.00
Northrim BanCorp 0 0 0 0 N/A

First Savings Financial Group presently has a consensus target price of $75.00, suggesting a potential upside of 31.37%. Given First Savings Financial Group’s higher possible upside, research analysts clearly believe First Savings Financial Group is more favorable than Northrim BanCorp.

Profitability

This table compares First Savings Financial Group and Northrim BanCorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Savings Financial Group 19.66% 12.67% 1.24%
Northrim BanCorp 16.25% 9.28% 1.22%

Dividends

First Savings Financial Group pays an annual dividend of $0.60 per share and has a dividend yield of 1.1%. Northrim BanCorp pays an annual dividend of $1.08 per share and has a dividend yield of 3.3%. Northrim BanCorp pays out 52.9% of its earnings in the form of a dividend. Northrim BanCorp has increased its dividend for 8 consecutive years. Northrim BanCorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

First Savings Financial Group has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, Northrim BanCorp has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Earnings & Valuation

This table compares First Savings Financial Group and Northrim BanCorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Savings Financial Group $55.45 million 2.36 $10.90 million N/A N/A
Northrim BanCorp $100.58 million 2.26 $13.15 million $2.04 16.18

Northrim BanCorp has higher revenue and earnings than First Savings Financial Group.

Institutional & Insider Ownership

25.2% of First Savings Financial Group shares are held by institutional investors. Comparatively, 70.9% of Northrim BanCorp shares are held by institutional investors. 16.7% of First Savings Financial Group shares are held by company insiders. Comparatively, 2.9% of Northrim BanCorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

First Savings Financial Group beats Northrim BanCorp on 8 of the 15 factors compared between the two stocks.

About First Savings Financial Group

First Savings Financial Group, Inc. operates as the holding company for First Savings Bank that provides various banking services to individuals and business customers in southern Indiana. The company operates through Core Banking and SBA Lending segments. It accepts deposits, such as checking accounts, NOW and money market accounts, regular savings accounts, time deposits, and certificates of deposit. The company also provides loans, including one-to four-family residential real estate loans, multifamily loans, commercial real estate loans, commercial business loans, construction loans, land and land development loans, and multi-family real estate loans, as well as consumer loans comprising automobile loans, home equity lines of credit, unsecured loans, and loans secured by deposits. In addition, it holds and manages an investment securities portfolio; and provides reinsurance to other third-party insurance captives. First Savings Financial Group, Inc. was incorporated in 2008 and is based in Clarksville, Indiana.

About Northrim BanCorp

Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professionals in Alaska. The company operates in two segments, Community Banking and Home Mortgage Lending. It offers various deposit products, including noninterest-bearing checking accounts and interest-bearing time deposits, checking accounts, and savings accounts, as well as money market deposit accounts, certificates of deposit, and courier noncash deposits. The company also provides family residential mortgages; commercial loans, such as secured and unsecured loans for working capital and expansion; commercial real estate loans; construction loans for commercial real estate projects, and land development and residential subdivision construction loans; and consumer loans comprising loans for automobiles, recreational vehicles, boats, and other consumer purchases, as well as home equity and commercial credit lines, and factoring services. In addition, it offers other services comprising consumer online banking, mobile app and mobile deposit, mobile Web and text banking, business online banking, personal finance, online documents, consumer and business debit cards, personalized checks at account opening, telebanking, automated teller, overdraft protection from a savings account, commercial drive-up banking, automatic transfers and payments, wire transfers, direct payroll deposit, electronic tax payments, automated clearing house origination and receipt, remote deposit capture, merchant, and cash management services, as well as annuity products, and long term investment portfolios. As of January 29, 2018, the company operated 14 branches in Anchorage, the Matanuska Valley, Juneau, Fairbanks, Ketchikan, and Sitka. Northrim BanCorp, Inc. was founded in 1990 and is headquartered in Anchorage, Alaska.

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