Northeast Community Bancorp (NECB) vs. Its Rivals Head to Head Review

Northeast Community Bancorp (NASDAQ:NECB) is one of 919 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Northeast Community Bancorp to similar companies based on the strength of its analyst recommendations, risk, dividends, valuation, profitability, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Northeast Community Bancorp and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northeast Community Bancorp	0	1	2	2	3.20
Northeast Community Bancorp Competitors	7483	30220	27802	1478	2.35

Northeast Community Bancorp currently has a consensus target price of $30.25, indicating a potential upside of 4.27%. As a group, “Banks” companies have a potential upside of 16.80%. Given Northeast Community Bancorp’s competitors higher possible upside, analysts plainly believe Northeast Community Bancorp has less favorable growth aspects than its competitors.

Dividends

Northeast Community Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 3.4%. Northeast Community Bancorp pays out 32.9% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.3% and pay out 28.9% of their earnings in the form of a dividend. Northeast Community Bancorp has raised its dividend for 2 consecutive years. Northeast Community Bancorp lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares Northeast Community Bancorp and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Northeast Community Bancorp	$158.21 million	$44.41 million	9.54
Northeast Community Bancorp Competitors	$37.93 billion	$2.42 billion	21.06

Northeast Community Bancorp’s competitors have higher revenue and earnings than Northeast Community Bancorp. Northeast Community Bancorp is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Northeast Community Bancorp has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, Northeast Community Bancorp’s competitors have a beta of 0.61, meaning that their average share price is 39% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northeast Community Bancorp	27.21%	11.55%	1.99%
Northeast Community Bancorp Competitors	15.65%	9.44%	0.93%

Institutional & Insider Ownership

53.2% of Northeast Community Bancorp shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are owned by institutional investors. 7.1% of Northeast Community Bancorp shares are owned by insiders. Comparatively, 9.7% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Northeast Community Bancorp competitors beat Northeast Community Bancorp on 9 of the 15 factors compared.

Northeast Community Bancorp Company Profile

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.