Contrasting Brookline Bancorp (NASDAQ:BRKL) and Northeast Community Bancorp (NASDAQ:NECB)

Brookline Bancorp (NASDAQ:BRKL) and Northeast Community Bancorp (OTCMKTS:NECB) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Institutional & Insider Ownership

80.8% of Brookline Bancorp shares are owned by institutional investors. 2.6% of Brookline Bancorp shares are owned by company insiders. Comparatively, 0.9% of Northeast Community Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Brookline Bancorp and Northeast Community Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brookline Bancorp $377.42 million 1.91 $87.72 million $1.10 8.31
Northeast Community Bancorp $57.50 million 1.82 $12.95 million N/A N/A

Brookline Bancorp has higher revenue and earnings than Northeast Community Bancorp.

Profitability

This table compares Brookline Bancorp and Northeast Community Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brookline Bancorp 12.65% 5.03% 0.56%
Northeast Community Bancorp N/A N/A N/A

Risk and Volatility

Brookline Bancorp has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Northeast Community Bancorp has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Dividends

Brookline Bancorp pays an annual dividend of $0.46 per share and has a dividend yield of 5.0%. Northeast Community Bancorp pays an annual dividend of $0.12 per share and has a dividend yield of 1.4%. Brookline Bancorp pays out 41.8% of its earnings in the form of a dividend. Brookline Bancorp has increased its dividend for 2 consecutive years. Brookline Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Brookline Bancorp and Northeast Community Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookline Bancorp 0 0 3 0 3.00
Northeast Community Bancorp 0 0 0 0 N/A

Summary

Brookline Bancorp beats Northeast Community Bancorp on 11 of the 13 factors compared between the two stocks.

Brookline Bancorp Company Profile

Brookline Bancorp, Inc. operates as the holding company for Brookline Bank, Bank Rhode Island, First Ipswich Bank, and Brookline Securities Corp that provide commercial, business, and retail banking services to corporate, municipal, and retail customers in the United States. Its deposit products include non-interest-bearing demand checking accounts, NOW accounts, savings accounts, and money market accounts, as well as commercial, municipal, and retail deposits. The company's loan portfolio primarily comprises first mortgage loans secured by commercial, multi-family, and residential real estate properties; loans to business entities comprising commercial lines of credit; loans to condominium associations; financing for construction and development projects; home equity and other consumer loans; and commercial loans and leases to small and midsized businesses. It also provides term loans, letters of credit, cash management, investment advisory, and online and mobile banking services, as well as invests in debt and equity securities. As of December 31, 2018, the Company operated 51 full-service banking offices in greater Boston, the north shore of Massachusetts, and Rhode Island. Brookline Bancorp, Inc. was founded in 1871 and is headquartered in Boston, Massachusetts.

Northeast Community Bancorp Company Profile

Northeast Community Bancorp, Inc. operates as the holding company for Northeast Community Bank that provides various financial services to consumers and businesses. The company accepts deposit products, such as checking accounts, money market accounts, savings accounts, certificates of deposit, and individual retirement accounts. Its loan products include multi-family, mixed-use, and non-residential real estate loans; commercial and industrial loans; construction loans; consumer loans; passbook, term, small business administration, and cooperative building loans; and revolving lines of credit. The company also offers various ATM/debit, credit, and gift cards; and investment advisory and financial planning, direct and remote deposit, wire transfer, automated clearing house, credit card merchant, coin and currency, and cash management services, as well as Internet, mobile, and telephone banking services. It operates four full-service branches in New York; three full-service branches in Massachusetts; and a loan production office in New City, New York. The company was founded in 1934 and is headquartered in White Plains, New York. Northeast Community Bancorp, Inc. is a subsidiary of Northeast Community Bancorp, MHC.

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