Critical Survey: OFG Bancorp (NYSE:OFG) vs. ECB Bancorp (NASDAQ:ECBK)

ECB Bancorp (NASDAQ:ECBK) and OFG Bancorp (NYSE:OFG) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Profitability

This table compares ECB Bancorp and OFG Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ECB Bancorp	13.19%	6.55%	0.70%
OFG Bancorp	24.08%	15.92%	1.80%

Institutional and Insider Ownership

30.3% of ECB Bancorp shares are owned by institutional investors. Comparatively, 92.7% of OFG Bancorp shares are owned by institutional investors. 10.4% of ECB Bancorp shares are owned by company insiders. Comparatively, 1.2% of OFG Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

ECB Bancorp has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, OFG Bancorp has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for ECB Bancorp and OFG Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ECB Bancorp	0	0	0	1	4.00
OFG Bancorp	0	4	2	1	2.57

OFG Bancorp has a consensus price target of $55.20, suggesting a potential upside of 5.61%. Given OFG Bancorp’s higher possible upside, analysts clearly believe OFG Bancorp is more favorable than ECB Bancorp.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ECB Bancorp	$79.51 million	2.28	$7.77 million	$1.37	15.15
OFG Bancorp	$902.28 million	2.45	$205.10 million	$5.08	10.29

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

Summary

OFG Bancorp beats ECB Bancorp on 11 of the 14 factors compared between the two stocks.

About ECB Bancorp

ECB Bancorp, Inc. operating as a holding company for Everett Co-operative Bank that provides various banking products and services. The company accepts various deposit products, including certificate of deposit accounts, IRAs, money market accounts, savings accounts, demand deposit accounts, and interest-bearing and noninterest-bearing checking accounts. It also offers one- to four-family residential real estate, commercial real estate and multifamily real estate, construction and land, commercial, and consumer loans, as well as home equity loans and lines of credit. In addition, the company invests in securities, consisting primarily of U.S. government and federal agency obligations, mortgage-backed securities, and corporate bonds. ECB Bancorp, Inc. was founded in 1890 and is based in Everett, Massachusetts.

About OFG Bancorp

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, and individual retirement accounts; certificate of deposits, as well as time deposit products; commercial, consumer, auto leasing, and mortgage lending services; credit cards; cash management; financial planning and insurance services; and corporate and individual trust, and retirement services. In addition, it provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. Further, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; and various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments. Additionally, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company provides investment brokerage, transactional, international trade financing, residential mortgage, and consumer finance services. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.