Territorial Bancorp (NASDAQ:TBNK) and New Bancorp (OTCMKTS:NWBB) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.

Profitability

This table compares Territorial Bancorp and New Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Territorial Bancorp 25.13% 8.20% 0.94%
New Bancorp N/A N/A N/A

Institutional & Insider Ownership

45.2% of Territorial Bancorp shares are held by institutional investors. 11.7% of Territorial Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Territorial Bancorp and New Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Territorial Bancorp 0 2 0 0 2.00
New Bancorp 0 0 0 0 N/A

Territorial Bancorp presently has a consensus target price of $32.00, suggesting a potential upside of 22.28%. Given Territorial Bancorp’s higher probable upside, research analysts plainly believe Territorial Bancorp is more favorable than New Bancorp.

Dividends

Territorial Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 3.4%. New Bancorp does not pay a dividend. Territorial Bancorp pays out 43.3% of its earnings in the form of a dividend. Territorial Bancorp has increased its dividend for 6 consecutive years.

Valuation & Earnings

This table compares Territorial Bancorp and New Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Territorial Bancorp $76.46 million 3.30 $19.21 million $2.03 12.89
New Bancorp N/A N/A N/A N/A N/A

Territorial Bancorp has higher revenue and earnings than New Bancorp.

Summary

Territorial Bancorp beats New Bancorp on 9 of the 10 factors compared between the two stocks.

Territorial Bancorp Company Profile

Territorial Bancorp Inc. operates as the holding company for Territorial Savings Bank that provides various financial services to individuals, families, and businesses. The company offers a range of deposit accounts, including passbook and statement savings accounts, certificates of deposit, money market accounts, commercial and regular checking accounts, and NOW accounts. It also provides various loan products comprising one- to four-family residential mortgage loans; home equity loans and lines of credit; construction, commercial, and other non-residential real estate loans; consumer loans; multi-family mortgage loans; commercial business loans; and other loans, as well as offers investment securities. In addition, the company, through its subsidiary, Territorial Financial Services, Inc. engages in insurance agency activities. Further, it provides various non-deposit investments, including annuities and mutual funds through a third-party broker-dealer. The company operates through a network of 29 full-service branches located in the State of Hawaii. Territorial Bancorp Inc. was founded in 1921 and is based in Honolulu, Hawaii.

New Bancorp Company Profile

New Bancorp, Inc. operates as the savings and loan holding company for New Buffalo Savings Bank that provides banking services in the United States. The company's deposit products include non-interest-bearing and interest-bearing demand accounts, savings accounts, money market accounts, and certificates of deposit. Its loan portfolio comprises one- to four-family residential real estate loans, commercial real estate loans, construction and land loans, commercial business loans, and consumer loans. The company operates through its main office in New Buffalo, Michigan; and two full-service banking offices located in Three Oaks and Sawyer, Michigan, as well as loan office in Troy, Michigan. New Bancorp, Inc. was founded in 1921 and is headquartered in New Buffalo, Michigan.

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