Head to Head Comparison: NewtekOne (NASDAQ:NEWT) vs. Plumas Bancorp (NASDAQ:PLBC)

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

Profitability

This table compares NewtekOne and Plumas Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NewtekOne	15.57%	17.97%	2.26%
Plumas Bancorp	27.39%	15.41%	1.80%

Analyst Recommendations

This is a summary of recent ratings and target prices for NewtekOne and Plumas Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NewtekOne	1	4	1	0	2.00
Plumas Bancorp	0	0	3	1	3.25

NewtekOne presently has a consensus target price of $16.33, suggesting a potential upside of 49.16%. Plumas Bancorp has a consensus target price of $66.33, suggesting a potential upside of 5.94%. Given NewtekOne’s higher probable upside, analysts plainly believe NewtekOne is more favorable than Plumas Bancorp.

Earnings & Valuation

This table compares NewtekOne and Plumas Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NewtekOne	$383.33 million	0.83	$60.51 million	$2.22	4.93
Plumas Bancorp	$112.17 million	3.89	$29.62 million	$5.08	12.33

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

Dividends

NewtekOne pays an annual dividend of $0.76 per share and has a dividend yield of 6.9%. Plumas Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 2.1%. NewtekOne pays out 34.2% of its earnings in the form of a dividend. Plumas Bancorp pays out 26.0% 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. NewtekOne has increased its dividend for 1 consecutive years and Plumas Bancorp has increased its dividend for 1 consecutive years.

Volatility & Risk

NewtekOne has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Plumas Bancorp has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Institutional & Insider Ownership

38.4% of NewtekOne shares are held by institutional investors. Comparatively, 41.7% of Plumas Bancorp shares are held by institutional investors. 5.9% of NewtekOne shares are held by insiders. Comparatively, 7.4% of Plumas Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Plumas Bancorp beats NewtekOne on 10 of the 17 factors compared between the two stocks.

About NewtekOne

NewtekOne, Inc. operates as the bank holding company for Newtek Bank, National Association that engages in the provision of various business and financial solutions under the Newtek brand name to the small- and medium-sized business market. The company accepts demand, savings, NOW, money market, and time deposits; and provides loans including SBA loans, commercial and industrial loans, and commercial real estate loans. It is also involved in the provision of electronic payment processing services comprising credit and debit card processing services, check approval services, processing equipment, and software, as well as cloud-based Point of Sale systems for a various restaurant, retail, assisted living, taxi cabs, parks, and golf course businesses. In addition, it offers wholesale brokerage insurance agency services; and payroll management, and related payment and tax reporting services to independent business owners. Further, the company provides website hosting, dedicated server hosting, cloud hosting, web design and development, internet marketing, ecommerce, data storage, backup and disaster recovery, and other related services, including consulting and implementing technology solutions for enterprise and commercial clients as well as SMBs. The company was formerly known as Newtek Business Services Corp. and changed its name to NewtekOne, Inc. in January 2023. NewtekOne, Inc. was founded in 1998 and is headquartered in Boca Raton, Florida.

About Plumas Bancorp

Plumas Bancorp operates as the bank holding company for the Plumas Bank that provides various banking products and services for small and middle market businesses, and individuals in Northeastern California and Northwestern Nevada. The company accepts various deposits, such as checking, money market checking, business sweep, public funds sweep, savings, time deposit, and retirement accounts. Its loan portfolio comprises of term real estate, commercial, and industrial term loans; government-guaranteed and agricultural loans, as well as credit lines; consumer, automobile, and home equity loans; land development and construction loans; and small business administration loans. In addition, the company provides remote deposit, telephone and mobile banking, internet banking with bill-pay options, cashier's check, bank-by-mail, automated teller machine, night depository, safe deposit box, direct deposit, electronic funds transfer, and other customary banking services. Plumas Bancorp was founded in 1980 and is headquartered in Reno, Nevada.