Northeast Bancorp (NASDAQ:NBN – Get Free Report) and Popular (NASDAQ:BPOP – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Northeast Bancorp and Popular, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Northeast Bancorp | 0 | 1 | 2 | 0 | 2.67 |
| Popular | 0 | 1 | 11 | 1 | 3.00 |
Northeast Bancorp presently has a consensus target price of $143.50, indicating a potential upside of 6.83%. Popular has a consensus target price of $186.42, indicating a potential upside of 18.15%. Given Popular’s stronger consensus rating and higher probable upside, analysts clearly believe Popular is more favorable than Northeast Bancorp.
Earnings and Valuation
This table compares Northeast Bancorp and Popular”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Northeast Bancorp | $385.07 million | 2.86 | $107.48 million | $13.47 | 9.97 |
| Popular | $4.44 billion | 2.27 | $833.16 million | $15.87 | 9.94 |
Popular has higher revenue and earnings than Northeast Bancorp. Popular is trading at a lower price-to-earnings ratio than Northeast Bancorp, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Northeast Bancorp has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Popular has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.
Dividends
Northeast Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Popular pays an annual dividend of $3.60 per share and has a dividend yield of 2.3%. Northeast Bancorp pays out 0.3% of its earnings in the form of a dividend. Popular pays out 22.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Popular has raised its dividend for 6 consecutive years. Popular is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
87.3% of Popular shares are held by institutional investors. 14.2% of Northeast Bancorp shares are held by company insiders. Comparatively, 2.1% of Popular shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Northeast Bancorp and Popular’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Northeast Bancorp | 28.34% | 20.02% | 2.25% |
| Popular | 22.36% | 16.08% | 1.32% |
Summary
Popular beats Northeast Bancorp on 10 of the 18 factors compared between the two stocks.
About Northeast Bancorp
Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. Further, it provides various services, such as money market, merchant, and payroll and HR. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.
About Popular
Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking products and services in Puerto Rico, the United States, and the British Virgin Islands. The company provides savings, NOW, money market, and other interest-bearing demand accounts; non-interest bearing demand deposits; and certificates of deposit. It also offers commercial and industrial, commercial multi-family, commercial real estate, and residential mortgage loans; consumer loans, including personal loans, credit cards, automobile loans, home equity lines of credit, and other loans to individual borrowers; construction loans; and lease financing comprising automobile loans/leases. In addition, the company provides investment banking, auto and equipment leasing and financing, broker-dealer, and insurance services; debit cards; and online banking services. Popular, Inc. was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.
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