PB Bancorp (PBBI) & BankFinancial (BFIN) Critical Contrast

PB Bancorp (NASDAQ:PBBI) and BankFinancial (NASDAQ:BFIN) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Earnings & Valuation

This table compares PB Bancorp and BankFinancial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PB Bancorp $20.09 million 4.10 $3.12 million N/A N/A
BankFinancial $62.59 million 3.88 $9.00 million $0.63 22.67

BankFinancial has higher revenue and earnings than PB Bancorp.

Dividends

PB Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 2.6%. BankFinancial pays an annual dividend of $0.40 per share and has a dividend yield of 2.8%. BankFinancial pays out 63.5% of its earnings in the form of a dividend. BankFinancial has increased its dividend for 4 consecutive years. BankFinancial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares PB Bancorp and BankFinancial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PB Bancorp 15.57% 3.71% 0.59%
BankFinancial 18.99% 7.88% 0.98%

Risk & Volatility

PB Bancorp has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500. Comparatively, BankFinancial has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for PB Bancorp and BankFinancial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PB Bancorp 0 0 0 0 N/A
BankFinancial 0 0 1 0 3.00

Institutional and Insider Ownership

34.4% of PB Bancorp shares are owned by institutional investors. Comparatively, 67.0% of BankFinancial shares are owned by institutional investors. 10.9% of PB Bancorp shares are owned by insiders. Comparatively, 15.2% of BankFinancial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

BankFinancial beats PB Bancorp on 11 of the 14 factors compared between the two stocks.

About PB Bancorp

PB Bancorp, Inc. operates as the holding company of Putnam Bank that provides various banking products and services to individuals and small business customers primarily in Connecticut. It offers a range of deposits, including checking, savings, and money market deposit accounts, as well as negotiable order of withdrawal accounts and fixed-term certificates of deposit. The company's loan portfolio comprises residential real estate loans, including one-to four-family mortgage loans, residential construction loans, second mortgage loans, and home equity lines of credit; commercial real estate loans comprising multi-family real estate loans; commercial loans, such as term loans and revolving lines of credit; and consumer and other loans. In addition, it invests in securities. As of October 4, 2018, PB Bancorp, Inc. operated through its eight full-service offices and a full-service loan center in Putnam, Connecticut. It also operates through a special needs limited branch and limited services mobile office. The company was founded in 1862 and is headquartered in Putnam, Connecticut.

About BankFinancial

BankFinancial Corporation operates as the holding company for BankFinancial, National Association that provides commercial, family, and personal banking products and services in Illinois. The company accepts various deposit products, such as savings, NOW, checking, money market, IRA, and other retirement accounts, as well as certificates of deposit. It also offers multi-family and nonresidential real estate, construction and land, and commercial loans, as well as commercial leases; consumer loans; and one-to-four family residential mortgage loans, including home equity loans and lines of credit. In addition, the company provides various financial products and services, such as cash management, fund transfer, bill payment and other online and mobile banking transactions, automated teller machines, safe deposit boxes, trust, wealth management, and general insurance agency. Further, it offers financial planning services; and sells property and casualty, and other insurance products on an agency basis. It operates 19 full-service banking offices located in Cook, DuPage, Lake, and Will Counties. BankFinancial Corporation was founded in 1924 and is headquartered in Burr Ridge, Illinois.

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