Northeast Indiana Bancorp (OTCMKTS:NIDB) vs. Waterstone Financial (NASDAQ:WSBF) Financial Contrast

Northeast Indiana Bancorp (OTCMKTS:NIDBGet Free Report) and Waterstone Financial (NASDAQ:WSBFGet Free Report) 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, risk, institutional ownership, earnings and profitability.

Profitability

This table compares Northeast Indiana Bancorp and Waterstone Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northeast Indiana Bancorp 13.31% N/A N/A
Waterstone Financial 5.45% 3.18% 0.50%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Northeast Indiana Bancorp and Waterstone Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northeast Indiana Bancorp 0 0 0 0 N/A
Waterstone Financial 0 0 0 0 N/A

Institutional and Insider Ownership

62.7% of Waterstone Financial shares are held by institutional investors. 19.8% of Northeast Indiana Bancorp shares are held by insiders. Comparatively, 8.3% of Waterstone Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Northeast Indiana Bancorp and Waterstone Financial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Northeast Indiana Bancorp $27.36 million 1.20 $4.26 million $2.05 6.64
Waterstone Financial $180.39 million 1.31 $9.38 million $0.52 23.17

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

Dividends

Northeast Indiana Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 5.0%. Waterstone Financial pays an annual dividend of $0.60 per share and has a dividend yield of 5.0%. Northeast Indiana Bancorp pays out 33.2% of its earnings in the form of a dividend. Waterstone Financial pays out 115.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Northeast Indiana Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Northeast Indiana Bancorp has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Waterstone Financial has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Summary

Waterstone Financial beats Northeast Indiana Bancorp on 8 of the 13 factors compared between the two stocks.

About Northeast Indiana Bancorp

(Get Free Report)

Northeast Indiana Bancorp, Inc. operates as the bank holding company for First Federal Savings Bank that provides various banking and financial advisory services. The company offers checking accounts, savings accounts, retirement accounts, health savings accounts, and direct deposits, as well as certificates of deposit. It also provides mortgage, refinance, new construction, and home equity loans; auto, recreational vehicle, and unsecured loans; and revolving lines of credit, term loans, real estate loans, letter of credit, and small business administration loans, as well as debit and credit cards. In addition, the company offers merchant, online banking, and cash management services. It operates through full-service locations in Huntington, Warsaw, and Fort Wayne, Indiana. The company was founded in 1912 and is headquartered in Huntington, Indiana.

About Waterstone Financial

(Get Free Report)

Waterstone Financial, Inc. operates as a bank holding company for WaterStone Bank SSB that provides various financial services to customers in southeastern Wisconsin, the United States. It operates in two segments, Community Banking and Mortgage Banking. The Community Banking segment offers consumer and business banking products and services, such as deposit and transactional solutions, including checking accounts, online banking and bill pay services, money transfer services, as well as credit, debit, and pre-paid cards; investable funds solutions comprising savings, money market deposits, individual retirement accounts, and certificates of deposit; residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; and fixed and variable annuities, insurance products, and trust and investment management accounts. It also provides transaction deposits, interest bearing transaction accounts, demand deposits, non-interest-bearing demand accounts, and time deposits; secured and unsecured lines; commercial real estate construction loans; term loans for working capital, inventory, and general corporate use; and personal term loans and investment services. The Mortgage Banking segment offers residential mortgage loans for the purpose of sale in the secondary market. It also invests in a portfolio of securities include mortgage-backed securities, government-sponsored and private-label enterprise bonds, collateralized mortgage and municipal obligations, and other debt securities. The company was formerly known as Wauwatosa Holdings, Inc. and changed its name to Waterstone Financial, Inc. in August 2008. The company was founded in 1921 and is based in Wauwatosa, Wisconsin.

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