Suruga Bank and Northeast Bancorp are two small-cap finance companies currently attracting investor attention. This article examines their financial performance based on key metrics such as earnings, dividends, valuation, and risk, providing insights to help investors determine which stock may be the better choice.
Dividend Comparison and Payout Ratios
Suruga Bank offers an annual dividend of $2.09 per share, yielding 2.6%. In contrast, Northeast Bancorp provides a significantly smaller annual dividend of $0.04 per share, resulting in a yield of 0.0%. The payout ratio for Suruga Bank stands at 22.6%, indicating a sustainable dividend policy. Northeast Bancorp, with a payout ratio of 0.4%, also showcases a healthy ability to cover its dividend obligations with earnings.
Both companies appear capable of maintaining their dividend payments over the coming years, which is a positive indicator for potential investors.
Valuation and Earnings Insights
A comparison of the two banks reveals that Suruga Bank boasts higher revenue and earnings than Northeast Bancorp. The price-to-earnings (P/E) ratio of Suruga Bank is currently lower than that of Northeast Bancorp, suggesting that Suruga Bank presents a more attractive valuation for investors seeking affordable stock options.
In terms of volatility, Suruga Bank’s beta is measured at -0.08, indicating that its share price is 108% less volatile than the S&P 500 index. Northeast Bancorp, on the other hand, has a beta of 0.55, meaning it is 45% less volatile than the benchmark index. This information may assist investors in assessing the risk associated with each stock.
Analyst Ratings and Profitability
A summary of current analyst ratings, as reported by MarketBeat, indicates that Northeast Bancorp has a consensus target price of $102.00, suggesting a possible downside of 3.78%. Analysts seem to favor Northeast Bancorp based on its stronger consensus rating and the potential upside it offers compared to Suruga Bank.
When evaluating profitability, Suruga Bank leads in net margins, return on equity, and return on assets. This strong performance in profitability metrics may attract investors looking for robust financial health in their investments.
In summary, Northeast Bancorp outperforms Suruga Bank in 10 out of 14 key factors assessed. This suggests that, while both banks have their strengths, Northeast Bancorp may offer more favorable metrics for investors.
About Suruga Bank: Established in 1895, Suruga Bank Ltd. is based in Numazu, Japan, providing a range of banking and financial services, including deposit products, loans, investment trusts, and online banking.
About Northeast Bancorp: Founded in 1872, Northeast Bank is headquartered in Portland, Maine. The bank offers a variety of banking services, including various types of loans, deposit accounts, and digital banking solutions.
Investors considering these two financial institutions should weigh the comparative advantages and challenges presented by each, including dividends, earnings, and analyst recommendations, to make informed decisions.
