Northeast Community Bancorp (NASDAQ:NECB – Get Free Report) and Freddie Mac (OTCMKTS:FMCC – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.
Earnings and Valuation
This table compares Northeast Community Bancorp and Freddie Mac”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Northeast Community Bancorp | $103.62 million | 3.67 | $44.41 million | $3.12 | 8.86 |
| Freddie Mac | $129.82 billion | 0.01 | $10.73 billion | $0.01 | 292.00 |
Insider and Institutional Ownership
53.2% of Northeast Community Bancorp shares are owned by institutional investors. 7.1% of Northeast Community Bancorp shares are owned by insiders. Comparatively, 0.1% of Freddie Mac shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Northeast Community Bancorp and Freddie Mac, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Northeast Community Bancorp | 0 | 1 | 1 | 2 | 3.25 |
| Freddie Mac | 1 | 3 | 1 | 0 | 2.00 |
Northeast Community Bancorp currently has a consensus target price of $29.50, indicating a potential upside of 6.69%. Freddie Mac has a consensus target price of $9.88, indicating a potential upside of 238.18%. Given Freddie Mac’s higher possible upside, analysts plainly believe Freddie Mac is more favorable than Northeast Community Bancorp.
Risk and Volatility
Northeast Community Bancorp has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Freddie Mac has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500.
Profitability
This table compares Northeast Community Bancorp and Freddie Mac’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Northeast Community Bancorp | 27.67% | 12.00% | 2.05% |
| Freddie Mac | 9.58% | -90.29% | 0.37% |
Summary
Northeast Community Bancorp beats Freddie Mac on 9 of the 14 factors compared between the two stocks.
About Northeast Community Bancorp
Northeast Community Bancorp, Inc. operates as the holding company for NorthEast Community Bank that provides financial services for individuals and businesses. It accepts various deposit instruments, including checking accounts, money market accounts, regular savings accounts, and non-interest bearing demand accounts, as well as certificates of deposits. The company also offers construction, commercial and industrial, multifamily and mixed-use real estate, non-residential real estate loans, and consumer loans. In addition, it invests in various types of liquid assets, including U.S. Treasury obligations, municipal securities, deposits at the Federal Home Loan Bank of New York, and certificates of deposit of federally insured institutions, as well as securities of various federal agencies, and of state and municipal governments. Further, the company offers financial planning and investment advisory services; and life insurance products and fixed-rate annuities. It operates full-service branches located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts; and loan production offices located in White Plains, New York, and New City counties in New York and Danvers, Massachusetts. Northeast Community Bancorp, Inc. was founded in 1934 and is headquartered in White Plains, New York.
About Freddie Mac
Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment purchases, securitizes, and guarantees single-family loans; and manages single-family mortgage credit and market risk, as well as manages mortgage-related investments portfolio, single-family securitization activities, and treasury functions. This segment serves mortgage banking companies, commercial banks, regional banks, community banks, credit unions, housing finance agencies, savings institutions, and non-depository financial institutions. The Multifamily segment engages in the purchase, securitization, and guarantee of multifamily loans; issuance of multifamily K certificates; manages multifamily mortgage credit and market risk; and invests in multifamily loans and mortgage-related securities. It serves banks and other financial institutions, insurance companies, money managers, hedge funds, pension funds, state and local governments, and broker dealers. Federal Home Loan Mortgage Corporation incorporated in 1970 and is headquartered in McLean, Virginia.
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