Flagstar Bank, National Association (NYSE:FLG) & Eagle Bancorp Montana (NASDAQ:EBMT) Head-To-Head Comparison

Eagle Bancorp Montana (NASDAQ:EBMT) and Flagstar Bank, National Association (NYSE:FLG) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Profitability

This table compares Eagle Bancorp Montana and Flagstar Bank, National Association’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eagle Bancorp Montana	12.57%	8.36%	0.76%
Flagstar Bank, National Association	2.22%	1.45%	0.12%

Volatility & Risk

Eagle Bancorp Montana has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Flagstar Bank, National Association has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Earnings and Valuation

This table compares Eagle Bancorp Montana and Flagstar Bank, National Association”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eagle Bancorp Montana	$94.01 million	1.80	$14.84 million	$2.04	10.41
Flagstar Bank, National Association	$4.81 billion	0.88	-$177.00 million	$0.15	67.57

Eagle Bancorp Montana has higher earnings, but lower revenue than Flagstar Bank, National Association. Eagle Bancorp Montana is trading at a lower price-to-earnings ratio than Flagstar Bank, National Association, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

35.7% of Eagle Bancorp Montana shares are owned by institutional investors. Comparatively, 67.9% of Flagstar Bank, National Association shares are owned by institutional investors. 5.8% of Eagle Bancorp Montana shares are owned by insiders. Comparatively, 21.4% of Flagstar Bank, National Association shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Eagle Bancorp Montana pays an annual dividend of $0.59 per share and has a dividend yield of 2.8%. Flagstar Bank, National Association pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. Eagle Bancorp Montana pays out 28.9% of its earnings in the form of a dividend. Flagstar Bank, National Association pays out 26.7% 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. Eagle Bancorp Montana has increased its dividend for 14 consecutive years. Eagle Bancorp Montana is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Eagle Bancorp Montana and Flagstar Bank, National Association, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eagle Bancorp Montana	0	3	1	0	2.25
Flagstar Bank, National Association	1	3	10	0	2.64

Eagle Bancorp Montana presently has a consensus price target of $23.50, indicating a potential upside of 10.64%. Flagstar Bank, National Association has a consensus price target of $14.54, indicating a potential upside of 43.47%. Given Flagstar Bank, National Association’s stronger consensus rating and higher probable upside, analysts clearly believe Flagstar Bank, National Association is more favorable than Eagle Bancorp Montana.

Summary

Flagstar Bank, National Association beats Eagle Bancorp Montana on 9 of the 17 factors compared between the two stocks.

About Eagle Bancorp Montana

Eagle Bancorp Montana, Inc. operates as the bank holding company for Opportunity Bank of Montana that provides various retail banking products and services to small businesses and individuals in Montana. It accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposit accounts. The company also provides 1-4 family residential mortgage loans, such as residential mortgages and construction of residential properties; commercial real estate loans, including multi-family dwellings, nonresidential property, commercial construction and development, and farmland loans; and second mortgage/home equity loans. In addition, it offers consumer loans, such as loans secured by collateral other than real estate, such as automobiles, recreational vehicles, and boats; personal loans and lines of credit; commercial business loans consisting of business loans and lines of credit on a secured and unsecured basis; construction loans; agricultural loans; and mortgage loan services. The company operates full-service branches and automated teller machines. Eagle Bancorp Montana, Inc. was founded in 1922 and is headquartered in Helena, Montana.

About Flagstar Bank, National Association

Flagstar Financial, Inc. operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company’s deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit. Its loan products comprise multi-family loans; commercial real estate loans; acquisition, development, and construction loans; commercial and industrial loans; one-to-four family loans; specialty finance loans and leases; warehouse loans; and other loans, such as home equity lines of credit, boat and recreational vehicle indirect lending, point of sale consumer loans, and other consumer loans, including overdraft loans. The company offers cash management products; non-deposit investment and insurance products; and online banking, mobile banking, and bank-by-phone services. It primarily serves individuals, small and mid-size businesses, and professional associations. The company was formerly known as New York Community Bancorp, Inc. and changed its name to Flagstar Financial, Inc. in October 2024. Flagstar Financial, Inc. was founded in 1859 and is headquartered in Hicksville, New York.