Comparing Northwest Bancshares (NASDAQ:NWBI) and Patriot National Bancorp (NASDAQ:PNBK)

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

Risk & Volatility

Northwest Bancshares has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Patriot National Bancorp has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.

Dividends

Northwest Bancshares pays an annual dividend of $0.72 per share and has a dividend yield of 4.4%. Patriot National Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Northwest Bancshares pays out 70.6% of its earnings in the form of a dividend. Northwest Bancshares has raised its dividend for 3 consecutive years. Northwest 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 current recommendations for Northwest Bancshares and Patriot National Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northwest Bancshares 0 1 0 0 2.00
Patriot National Bancorp 0 1 0 0 2.00

Patriot National Bancorp has a consensus target price of $24.00, suggesting a potential upside of 91.69%. Given Patriot National Bancorp’s higher possible upside, analysts plainly believe Patriot National Bancorp is more favorable than Northwest Bancshares.

Valuation and Earnings

This table compares Northwest Bancshares and Patriot National Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Northwest Bancshares $467.48 million 3.73 $105.49 million $1.02 16.01
Patriot National Bancorp $42.00 million 1.17 $3.20 million N/A N/A

Northwest Bancshares has higher revenue and earnings than Patriot National Bancorp.

Institutional and Insider Ownership

70.8% of Northwest Bancshares shares are owned by institutional investors. Comparatively, 6.0% of Patriot National Bancorp shares are owned by institutional investors. 1.4% of Northwest Bancshares shares are owned by company insiders. Comparatively, 66.1% of Patriot National Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Northwest Bancshares 21.50% 8.31% 1.07%
Patriot National Bancorp -0.86% -0.57% -0.04%

Summary

Northwest Bancshares beats Patriot National Bancorp on 10 of the 13 factors compared between the two stocks.

Northwest Bancshares Company Profile

Northwest Bancshares, Inc. is a holding company. It offers personal & business banking products including employee benefits, investment management services, insurance and trust. It engages in collecting deposits and making loans secured by various types of collateral, including real estate and other assets. The company was founded on June 29, 2001 and is headquartered in Warren, PA.

Patriot National Bancorp Company Profile

Patriot National Bancorp, Inc. operates as the bank holding company for Patriot Bank, N.A. that provides community banking services to individuals, small and medium-sized businesses, and professionals. The company offers consumer and commercial deposit accounts, such as checking accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, time certificates of deposit, savings accounts, individual retirement accounts, and health savings accounts, as well as certificate of deposit account registry service. Its loan portfolio comprises commercial real estate, commercial business, construction, and consumer loans. The company also offers automated clearing house transfers, lockbox, Internet banking, bill payment, remote deposit capture, debit card, money order, traveler's check, and automatic teller machine services. Patriot National Bancorp, Inc. provides its products and services through its main office in Stamford; seven branch offices in Connecticut; and two branch offices in New York. The company was founded in 1994 and is headquartered in Stamford, Connecticut. Patriot National Bancorp, Inc. is a subsidiary of PNBK Holdings LLC.

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