Comparing NSTS Bancorp (NASDAQ:NSTS) & Columbia Financial (NASDAQ:CLBK)

Columbia Financial (NASDAQ:CLBK) and NSTS Bancorp (NASDAQ:NSTS) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Columbia Financial and NSTS Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Columbia Financial	3.70%	3.07%	0.30%
NSTS Bancorp	-60.15%	-5.00%	-1.54%

Institutional and Insider Ownership

12.7% of Columbia Financial shares are held by institutional investors. Comparatively, 23.7% of NSTS Bancorp shares are held by institutional investors. 2.5% of Columbia Financial shares are held by company insiders. Comparatively, 4.6% of NSTS Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Columbia Financial and NSTS Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Columbia Financial	0	1	1	0	2.50
NSTS Bancorp	0	0	0	0	N/A

Columbia Financial currently has a consensus target price of $17.50, suggesting a potential upside of 11.18%. Given Columbia Financial’s higher probable upside, research analysts clearly believe Columbia Financial is more favorable than NSTS Bancorp.

Earnings & Valuation

This table compares Columbia Financial and NSTS Bancorp’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Columbia Financial	$422.36 million	3.91	$36.09 million	$0.16	98.38
NSTS Bancorp	$6.58 million	7.77	-$3.96 million	($0.80)	-12.01

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

Volatility & Risk

Columbia Financial has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500. Comparatively, NSTS Bancorp has a beta of 0.08, indicating that its share price is 92% less volatile than the S&P 500.

Summary

Columbia Financial beats NSTS Bancorp on 10 of the 13 factors compared between the two stocks.

About Columbia Financial

Columbia Financial, Inc., a bank holding company, provides various financial services to businesses and consumers in the United States. Its deposit products include checking, interest-earning checking products and municipal, savings and club deposits, and money market accounts, as well as certificates of deposit. The company also provides various loans, including multifamily and commercial real estate loans, commercial business loans, one-to-four family residential loans, construction loans, home equity loans and advances, and other consumer loans, such as automobiles and personal loans, as well as unsecured and overdraft lines of credit. In addition, it offers title insurance products; wealth management services; and cash management services comprising remote deposit, lockbox service, sweep accounts, and escrow services. The company operates full-service banking offices in New Jersey; and branch offices in Freehold, New Jersey. Columbia Financial, Inc. was founded in 1926 and is based in Fair Lawn, New Jersey. Columbia Financial, Inc. is a subsidiary of Columbia Bank MHC.

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.