Analyzing Northeast Indiana Bancorp (OTCMKTS:NIDB) and Sound Financial Bancorp (OTCMKTS:SFBC)

Northeast Indiana Bancorp (OTCMKTS:NIDB) and Sound Financial Bancorp (NASDAQ:SFBC) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Northeast Indiana Bancorp and Sound Financial Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Northeast Indiana Bancorp $17.23 million 2.68 $4.17 million N/A N/A
Sound Financial Bancorp $37.45 million 2.47 $7.04 million N/A N/A

Sound Financial Bancorp has higher revenue and earnings than Northeast Indiana Bancorp.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Northeast Indiana Bancorp and Sound Financial Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northeast Indiana Bancorp 0 0 0 0 N/A
Sound Financial Bancorp 0 0 0 0 N/A

Institutional and Insider Ownership

39.1% of Sound Financial Bancorp shares are held by institutional investors. 19.8% of Northeast Indiana Bancorp shares are held by insiders. Comparatively, 12.7% of Sound Financial Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Northeast Indiana Bancorp and Sound Financial Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northeast Indiana Bancorp 22.83% N/A N/A
Sound Financial Bancorp 17.45% 8.93% 0.92%

Volatility & Risk

Northeast Indiana Bancorp has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500. Comparatively, Sound Financial Bancorp has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500.

Dividends

Northeast Indiana Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.6%. Sound Financial Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 1.6%. Sound Financial Bancorp has increased its dividend for 5 consecutive years.

Summary

Sound Financial Bancorp beats Northeast Indiana Bancorp on 8 of the 12 factors compared between the two stocks.

About Northeast Indiana Bancorp

Northeast Indiana Bancorp, Inc. operates as the bank holding company for First Federal Savings Bank that provides various banking and financial advisory services. It offers various personal products, including checking accounts, savings accounts, certificates of deposit, retirement accounts, health savings accounts, and direct deposits. The company's loan portfolio comprises mortgage loans, such as home purchases, refinances, new construction loans, and home equity/home improvement loans; installment loans consisting of auto loans, personal loans, short term notes, and savings account loans, as well as RV, ATV, and boat loans; and commercial loans, including lines of credit, letters of credit, equipment financing, and construction loans, as well as commercial loans comprising revolving line of credit, term loans, real estate loans, letter of credit, and small business administration loans. It also provides debit and credit cards, safe deposit boxes, online banking services, merchant services, and cash management services, as well as treasury management and merchant deposit capture services. In addition, the company offers various financial services to individual and corporate clients, including brokerage accounts, retail funds, and wealth management products, as well as insurance products and retirement plans. Northeast Indiana Bancorp, Inc. operates three full service locations in Huntington; one full service location in Warsaw; and two full service locations in Fort Wayne, Indiana. The company is based in Huntington, Indiana.

About Sound Financial Bancorp

Sound Financial Bancorp, Inc. operates as the holding company for Sound Community Bank that provides traditional banking and other financial services for individuals and businesses. It accepts various deposits products comprising savings accounts, money market deposit accounts, NOW accounts, demand accounts, certificates of deposit, and checking accounts. The company also offers various loan products, such as loans secured by first and second mortgages on one-to four-family residences; home equity loans comprising fixed-rate loans and variable-rate lines of credit; commercial and multifamily real estate loans; construction loans secured by single-family residences, and commercial and multifamily real estate; secured and unsecured consumer loans, including new and used manufactured home loans, floating home loans, automobile loans, boat loans, and recreational vehicle loans, and loans secured by deposit accounts; land loans; and commercial business loans to finance commercial vehicles and equipment, as well as loans secured by accounts receivable and/or inventory. It operates through main office in Seattle; seven branch offices, of which four are located in the Seattle Metropolitan Statistical area, two are located in Clallam County, and one is located in Jefferson County; and two loan production offices, including one located in the Madison Park neighborhood of Seattle and one located in Sequim. Sound Financial Bancorp, Inc. was incorporated in 2008 and is headquartered in Seattle, Washington.

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