First Financial Northwest (FFNW) versus New York Community Bancorp (NYCB) Financial Review
First Financial Northwest (NASDAQ: FFNW) and New York Community Bancorp (NYSE:NYCB) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.
This table compares First Financial Northwest and New York Community Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Financial Northwest||17.01%||6.54%||0.84%|
|New York Community Bancorp||25.91%||6.81%||0.87%|
This table compares First Financial Northwest and New York Community Bancorp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First Financial Northwest||$49.85 million||3.20||$8.48 million||$0.81||18.33|
|New York Community Bancorp||$1.80 billion||3.70||$466.20 million||$0.90||15.12|
New York Community Bancorp has higher revenue and earnings than First Financial Northwest. New York Community Bancorp is trading at a lower price-to-earnings ratio than First Financial Northwest, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
42.4% of First Financial Northwest shares are owned by institutional investors. Comparatively, 59.3% of New York Community Bancorp shares are owned by institutional investors. 7.3% of First Financial Northwest shares are owned by company insiders. Comparatively, 3.1% of New York Community Bancorp shares are owned by company 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.
Volatility and Risk
First Financial Northwest has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, New York Community Bancorp has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.
First Financial Northwest pays an annual dividend of $0.28 per share and has a dividend yield of 1.9%. New York Community Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 5.0%. First Financial Northwest pays out 34.6% of its earnings in the form of a dividend. New York Community Bancorp pays out 75.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of recent ratings and recommmendations for First Financial Northwest and New York Community Bancorp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Financial Northwest||0||1||0||0||2.00|
|New York Community Bancorp||2||5||1||0||1.88|
First Financial Northwest presently has a consensus target price of $18.00, suggesting a potential upside of 21.21%. New York Community Bancorp has a consensus target price of $12.96, suggesting a potential downside of 4.79%. Given First Financial Northwest’s stronger consensus rating and higher possible upside, research analysts plainly believe First Financial Northwest is more favorable than New York Community Bancorp.
New York Community Bancorp beats First Financial Northwest on 11 of the 16 factors compared between the two stocks.
About First Financial Northwest
First Financial Northwest, Inc. (First Financial Northwest) is a holding company for First Financial Northwest Bank (the Bank). The Bank primarily serves the greater Puget Sound region of King and to a lesser extent, Pierce, Snohomish and Kitsap Counties, Washington through its full-service banking office located in Renton, Washington and branch office in Mill Creek, Washington. The Bank’s business consists of attracting deposits from the public and utilizing these funds to originate one- to four-family residential, multifamily, commercial real estate, construction/land development, business and consumer loans. It focuses on its lending activities primarily on loans secured by commercial real estate, construction/land development, first mortgages on one- to four-family residences, multifamily and business lending. Its investment portfolio consisted principally of mortgage-backed securities, municipal bonds, the United States Government Agency obligations and corporate bonds.
About New York Community Bancorp
New York Community Bancorp, Inc. is a multi-bank holding company. The Company operates through its subsidiaries, New York Community Bank (the Community Bank) and New York Commercial Bank (the Commercial Bank) (collectively, the Banks). The Company’s operations are divided into two segments: Banking Operations and Residential Mortgage Banking. The Banking Operations segment serves consumers and businesses by offering and servicing a range of loan and deposit products and other financial services. The Residential Mortgage Banking segment originates, aggregates, sells and services one- to four-family mortgage loans. Mortgage loan products consist of agency-conforming, fixed and adjustable-rate loans and, to a lesser extent, jumbo loans, for the purpose of purchasing or refinancing one- to four-family homes. The Community Bank is a chartered savings bank. As of December 31, 2016, the Community Bank had 225 branches operating through seven local divisions.
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