Two small-cap finance companies, Suruga Bank and Northeast Bancorp, are attracting attention as investors seek to evaluate their potential for growth. This article compares the two firms based on key financial metrics including earnings, dividends, valuation, and risk.
Dividend Performance
In terms of dividend distribution, Suruga Bank offers an annual dividend of $2.09 per share, resulting in a dividend yield of 2.6%. In contrast, Northeast Bancorp pays a much lower annual dividend of $0.04 per share, translating to a dividend yield of 0.0%. Furthermore, Suruga Bank allocates 22.6% of its earnings to dividends, while Northeast Bancorp pays out only 0.4% of its earnings in dividends. Both companies maintain healthy payout ratios, suggesting they can cover their dividends with earnings for the foreseeable future.
Valuation and Earnings Analysis
When examining revenue and earnings, Suruga Bank outperforms Northeast Bancorp. The former has higher revenues and earnings per share (EPS), indicating a stronger financial position. Additionally, Suruga Bank is currently trading at a lower price-to-earnings ratio compared to Northeast Bancorp, making it a more attractive option for value-focused investors.
Risk assessment reveals that Suruga Bank has a beta of -0.08, indicating its share price is significantly less volatile than the S&P 500, by approximately 108%. On the other hand, Northeast Bancorp has a beta of 0.55, meaning it is 45% less volatile than the S&P 500. This suggests that investors in Suruga Bank may experience less price fluctuation than those in Northeast Bancorp.
Analyst ratings provide further insight into the prospects of each company. According to MarketBeat, Northeast Bancorp has a consensus target price of $102.00, which suggests a potential downside of 3.78%. Given its stronger consensus rating and higher potential upside, analysts appear to favor Northeast Bancorp over Suruga Bank.
Profitability metrics such as net margins, return on equity, and return on assets further highlight differences in performance. In summary, Northeast Bancorp leads in 10 out of 14 evaluation factors when compared to Suruga Bank.
About Suruga Bank: Founded in 1895 and headquartered in Numazu, Japan, Suruga Bank Ltd. provides a range of banking and financial services, including deposit products, loans, and investment services.
About Northeast Bancorp: Established in 1872 and based in Portland, Maine, Northeast Bank offers various banking services to individuals and businesses, including deposit accounts and a diverse loan portfolio.
As investors weigh their options in the finance sector, the contrasting performances of Suruga Bank and Northeast Bancorp present distinct opportunities and challenges.
