NSTS Bancorp (NASDAQ:NSTS – Get Free Report) and Northrim BanCorp (NASDAQ:NRIM – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.
Volatility and Risk
NSTS Bancorp has a beta of 0.04, meaning that its stock price is 96% less volatile than the S&P 500. Comparatively, Northrim BanCorp has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.
Profitability
This table compares NSTS Bancorp and Northrim BanCorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NSTS Bancorp | -48.24% | -5.83% | -1.71% |
| Northrim BanCorp | 18.87% | 14.86% | 1.30% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NSTS Bancorp | 0 | 0 | 0 | 0 | 0.00 |
| Northrim BanCorp | 0 | 0 | 1 | 0 | 3.00 |
Northrim BanCorp has a consensus price target of $96.50, suggesting a potential upside of 30.23%. Given Northrim BanCorp’s stronger consensus rating and higher probable upside, analysts clearly believe Northrim BanCorp is more favorable than NSTS Bancorp.
Institutional & Insider Ownership
23.7% of NSTS Bancorp shares are owned by institutional investors. Comparatively, 66.0% of Northrim BanCorp shares are owned by institutional investors. 4.6% of NSTS Bancorp shares are owned by insiders. Comparatively, 4.1% of Northrim BanCorp shares are owned by 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 and Earnings
This table compares NSTS Bancorp and Northrim BanCorp”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NSTS Bancorp | $6.26 million | 9.98 | -$3.96 million | ($0.90) | -13.19 |
| Northrim BanCorp | $155.22 million | 2.64 | $36.97 million | $6.62 | 11.19 |
Northrim BanCorp has higher revenue and earnings than NSTS Bancorp. NSTS Bancorp is trading at a lower price-to-earnings ratio than Northrim BanCorp, indicating that it is currently the more affordable of the two stocks.
Summary
Northrim BanCorp beats NSTS Bancorp on 12 of the 14 factors compared between the two stocks.
About NSTS Bancorp
NSTS Bancorp, Inc. operates as a savings and loan holding company for North Shore Trust and Savings that provides banking products and services in Illinois. The company offers interest-bearing and noninterest-bearing checking, money market, savings, and time deposit accounts; and one- to four-family residential mortgage, multi-family and commercial real estate mortgage, construction, home equity, and consumer loans. It operates through full-service banking offices in Lake County, Illinois; and one loan production office in Chicago. The company was founded in 1921 and is headquartered in Waukegan, Illinois.
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 professional individuals. It operates through two segments, Community Banking and Home Mortgage Lending. The company offers noninterest-bearing checking accounts and interest-bearing time deposits, checking and savings accounts, individual retirement and money market deposit accounts, certificates of deposit, and business sweep accounts. It also provides short and medium-term commercial loans, commercial credit lines, construction and real estate loans, and consumer loans, as well as short-term working capital. In addition, the company offers other services comprising consumer and business online banking, mobile app, and mobile deposits; and debit and credit cards. Further, it provides mobile web and app banking, consumer online account opening, personal finance, online documents, consumer debit cards, business debit cards, my rewards for consumer debit cards, retail lockbox, card control, corporate purchase cards, integrated payables, home equity advantage access cards, telebanking, and automated teller services. Additionally, the company offers personalized checks at account opening, overdraft protection from a savings account, commercial drive-up banking, automatic transfer and payment, People Pay, external transfer, Bill Pay, wire transfer, direct payroll deposit, electronic tax payment, Automated Clearing House origination and receipt, remote deposit capture, account reconciliation and positive pay, merchant, cash management, annuity, and long-term investment portfolio products and services. It also provides investment advisory, trust, wealth management, factoring, and mortgage services. The company was founded in 1990 and is headquartered in Anchorage, Alaska.
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