Comparing Northeast Community Bancorp (NECB) & Its Competitors

Northeast Community Bancorp (NASDAQ:NECB) is one of 919 publicly-traded companies in the “Banks” industry, but how does it compare to its rivals? We will compare Northeast Community Bancorp to similar companies based on the strength of its analyst recommendations, profitability, risk, earnings, valuation, dividends and institutional ownership.

Dividends

Northeast Community Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 3.4%. Northeast Community Bancorp pays out 32.9% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.2% and pay out 28.9% of their earnings in the form of a dividend. Northeast Community Bancorp has raised its dividend for 2 consecutive years. Northeast Community Bancorp lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares Northeast Community Bancorp and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Northeast Community Bancorp	$158.21 million	$44.41 million	9.60
Northeast Community Bancorp Competitors	$9.95 billion	$2.42 billion	17.38

Northeast Community Bancorp’s rivals have higher revenue and earnings than Northeast Community Bancorp. Northeast Community Bancorp is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Northeast Community Bancorp and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northeast Community Bancorp	27.21%	11.55%	1.99%
Northeast Community Bancorp Competitors	15.66%	9.44%	0.93%

Institutional and Insider Ownership

53.2% of Northeast Community Bancorp shares are held by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are held by institutional investors. 7.1% of Northeast Community Bancorp shares are held by insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Northeast Community Bancorp has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Northeast Community Bancorp’s rivals have a beta of 0.52, suggesting that their average share price is 48% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Northeast Community Bancorp and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northeast Community Bancorp	0	1	2	2	3.20
Northeast Community Bancorp Competitors	7463	30182	27751	1456	2.35

Northeast Community Bancorp presently has a consensus target price of $30.25, indicating a potential upside of 3.63%. As a group, “Banks” companies have a potential upside of 15.93%. Given Northeast Community Bancorp’s rivals higher possible upside, analysts clearly believe Northeast Community Bancorp has less favorable growth aspects than its rivals.

Summary

Northeast Community Bancorp rivals beat Northeast Community Bancorp on 9 of the 15 factors compared.

Northeast Community Bancorp Company Profile

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.