First Northern Community Bancorp (OTCMKTS:FNRN) and Axos Financial (NYSE:AX) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Volatility & Risk

First Northern Community Bancorp has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500. Comparatively, Axos Financial has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Profitability

This table compares First Northern Community Bancorp and Axos Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Northern Community Bancorp 19.79% 11.48% 0.97%
Axos Financial 27.57% 17.81% 1.74%

Institutional & Insider Ownership

3.4% of First Northern Community Bancorp shares are held by institutional investors. Comparatively, 73.1% of Axos Financial shares are held by institutional investors. 9.7% of First Northern Community Bancorp shares are held by insiders. Comparatively, 6.5% of Axos Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for First Northern Community Bancorp and Axos Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Northern Community Bancorp 0 0 0 0 N/A
Axos Financial 0 0 2 1 3.33

Axos Financial has a consensus price target of $42.67, suggesting a potential upside of 58.02%. Given Axos Financial’s higher probable upside, analysts clearly believe Axos Financial is more favorable than First Northern Community Bancorp.

Valuation and Earnings

This table compares First Northern Community Bancorp and Axos Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Northern Community Bancorp $48.14 million 2.64 $8.74 million N/A N/A
Axos Financial $546.02 million 3.11 $152.41 million $2.48 10.89

Axos Financial has higher revenue and earnings than First Northern Community Bancorp.

Summary

Axos Financial beats First Northern Community Bancorp on 11 of the 13 factors compared between the two stocks.

About First Northern Community Bancorp

First Northern Community Bancorp operates as the holding company for First Northern Bank of Dixon, a state-chartered bank that provides commercial banking services to individuals and small to medium sized businesses in California. It accepts demand, interest bearing transaction, savings and money market, and time deposits. The company also provides commercial, commercial real estate, agriculture, residential mortgage, residential construction, and consumer loans. In addition, it offers investment and brokerage services; alternative investment products and services; and equipment leasing, merchant card processing, payroll, and international banking services through third parties. Further, the company provides credit cards; issues cashier's checks; sells travelers' checks; rents safe deposit boxes; and offers other customary banking services. It operates 10 full service branches located in the cities of Auburn, Davis, Dixon, Fairfield, Roseville, Sacramento, Vacaville, West Sacramento, Winters, and Woodland; a satellite banking office inside a retirement community in the city of Davis; a residential mortgage loan office in Davis; and an asset management and trust department in Downtown Sacramento. First Northern Community Bancorp was founded in 1910 and is headquartered in Dixon, California.

About Axos Financial

Axos Financial, Inc. operates as the holding company for BofI Federal Bank that provides consumer and business banking products in the United States. The company offers deposits products, including consumer and business checking, demand, savings, and time deposit accounts. It also provides single family and multifamily mortgage secured lending products; commercial real estate secured and commercial lending products; specialty finance factoring products; prime loans to customers secured by new and used automobiles; and term unsecured personal loans to individual borrowers, as well as overdraft lines of credit. In addition, the company offers prepaid card and refund transfer, debit card or ATM card, portfolio management, online bill payment, money transfer, overdraft protection, online and mobile banking, and text message banking services. The company was formerly known as BofI Holding, Inc. and changed its name to Axos Financial, Inc. in September 2018. Axos Financial, Inc. was incorporated in 1999 and is based in San Diego, California.

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