Analyzing Quaint Oak Bancorp (OTCMKTS:QNTO) and NB Bancorp (NASDAQ:NBBK)

Quaint Oak Bancorp (OTCMKTS:QNTO) and NB Bancorp (NASDAQ:NBBK) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Institutional and Insider Ownership

8.6% of Quaint Oak Bancorp shares are held by institutional investors. 31.3% of Quaint Oak Bancorp shares are held by company insiders. Comparatively, 1.7% of NB Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Quaint Oak Bancorp and NB Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quaint Oak Bancorp	0	0	0	0	N/A
NB Bancorp	0	0	1	0	3.00

NB Bancorp has a consensus target price of $17.00, indicating a potential upside of 12.73%. Given NB Bancorp’s higher probable upside, analysts plainly believe NB Bancorp is more favorable than Quaint Oak Bancorp.

Profitability

This table compares Quaint Oak Bancorp and NB Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quaint Oak Bancorp	3.83%	5.87%	0.38%
NB Bancorp	N/A	N/A	N/A

Valuation & Earnings

This table compares Quaint Oak Bancorp and NB Bancorp’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quaint Oak Bancorp	$59.80 million	0.47	$2.02 million	$0.99	10.88
NB Bancorp	$236.08 million	2.73	$9.82 million	N/A	N/A

NB Bancorp has higher revenue and earnings than Quaint Oak Bancorp.

About Quaint Oak Bancorp

Quaint Oak Bancorp, Inc. operates as the holding company for Quaint Oak Bank that provides banking products and services in Pennsylvania. It offers various deposit products, including money market accounts, certificates of deposit, interest and non-interest-bearing checking accounts for businesses and consumers, and savings accounts. The company also provides residential and commercial mortgage loans, construction loans, commercial business loans, home equity loans, and lines of credit; mortgage banking, real estate sales, title abstract, and insurance services; and multi-state equipment financing services. It serves its customers through offices, as well as correspondence, telephone, and online banking. Quaint Oak Bancorp, Inc. was incorporated in 1926 and is headquartered in Southampton, Pennsylvania.

About NB Bancorp

NB Bancorp, Inc. focuses on operating as a bank holding company for Needham Bank that provides various banking products and services in Greater Boston metropolitan area and surrounding communities in Massachusetts, eastern Connecticut, southern New Hampshire, and Rhode Island. The company offers various deposits, including certificate of deposit, individual retirement, money market, savings, NOW, demand deposit, and interest-bearing and noninterest-bearing checking accounts; and commercial real estate and multifamily, one- to four-family residential real estate, construction and land development, commercial and industrial, and consumer loans, as well as home equity loans and lines of credit. It also invests in securities consisting of U.S. treasury and federal agency securities, government-sponsored residential mortgage-backed securities, municipal bonds, and corporate bonds. The company was founded in 1892 and is based in Needham, Massachusetts.