Reviewing Northeast Community Bancorp (NASDAQ:NECB) & FirstSun Capital Bancorp (NASDAQ:FSUN)

FirstSun Capital Bancorp (NASDAQ:FSUN) and Northeast Community Bancorp (NASDAQ:NECB) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FirstSun Capital Bancorp	6.60%	7.16%	0.92%
Northeast Community Bancorp	27.67%	12.00%	2.05%

Earnings and Valuation

This table compares FirstSun Capital Bancorp and Northeast Community Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FirstSun Capital Bancorp	$569.65 million	3.10	$97.94 million	$1.97	19.26
Northeast Community Bancorp	$158.21 million	2.40	$44.41 million	$3.12	8.86

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

Volatility and Risk

FirstSun Capital Bancorp has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, Northeast Community Bancorp has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500.

Insider and Institutional Ownership

53.2% of Northeast Community Bancorp shares are owned by institutional investors. 10.5% of FirstSun Capital Bancorp shares are owned by company insiders. Comparatively, 7.1% of Northeast Community Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for FirstSun Capital Bancorp and Northeast Community Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FirstSun Capital Bancorp	1	1	3	1	2.67
Northeast Community Bancorp	0	1	1	2	3.25

FirstSun Capital Bancorp currently has a consensus price target of $45.25, suggesting a potential upside of 19.24%. Northeast Community Bancorp has a consensus price target of $29.50, suggesting a potential upside of 6.77%. Given FirstSun Capital Bancorp’s higher possible upside, equities analysts clearly believe FirstSun Capital Bancorp is more favorable than Northeast Community Bancorp.

Summary

Northeast Community Bancorp beats FirstSun Capital Bancorp on 8 of the 15 factors compared between the two stocks.

About FirstSun Capital Bancorp

FirstSun Capital Bancorp engages in the provision of commercial banking services. It operates through the following segments: Banking, Mortgage Operations, and Corporate. The Banking segment consists of loans and provides deposits and fee-based services to consumer, business, and mortgage lending customers. The Mortgage Operations segment originates, sells, services, and manages market risk from changes in interest rates on one-to-four family residential mortgage loans to sell and hold. The company is founded on November 9, 1981 headquartered in Denver, CO.

About Northeast Community Bancorp

Northeast Community Bancorp, Inc. operates as the holding company for NorthEast Community Bank that provides financial services for individuals and businesses. It accepts various deposit instruments, including checking accounts, money market accounts, regular savings accounts, and non-interest bearing demand accounts, as well as certificates of deposits. The company also offers construction, commercial and industrial, multifamily and mixed-use real estate, non-residential real estate loans, and consumer loans. In addition, it invests in various types of liquid assets, including U.S. Treasury obligations, municipal securities, deposits at the Federal Home Loan Bank of New York, and certificates of deposit of federally insured institutions, as well as securities of various federal agencies, and of state and municipal governments. Further, the company offers financial planning and investment advisory services; and life insurance products and fixed-rate annuities. It operates full-service branches located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts; and loan production offices located in White Plains, New York, and New City counties in New York and Danvers, Massachusetts. Northeast Community Bancorp, Inc. was founded in 1934 and is headquartered in White Plains, New York.