Reviewing Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK) and Provident Financial (NASDAQ:PROV)

Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBKGet Rating) and Provident Financial (NASDAQ:PROVGet Rating) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Institutional & Insider Ownership

64.7% of Northfield Bancorp, Inc. (Staten Island, NY) shares are held by institutional investors. Comparatively, 60.2% of Provident Financial shares are held by institutional investors. 6.0% of Northfield Bancorp, Inc. (Staten Island, NY) shares are held by company insiders. Comparatively, 14.0% of Provident Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Northfield Bancorp, Inc. (Staten Island, NY) and Provident Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northfield Bancorp, Inc. (Staten Island, NY) 36.53% 8.97% 1.21%
Provident Financial 25.79% 7.80% 0.84%

Earnings & Valuation

This table compares Northfield Bancorp, Inc. (Staten Island, NY) and Provident Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Northfield Bancorp, Inc. (Staten Island, NY) $186.75 million 3.48 $70.65 million $1.37 9.71
Provident Financial $39.77 million 2.72 $7.56 million $1.32 11.25

Northfield Bancorp, Inc. (Staten Island, NY) has higher revenue and earnings than Provident Financial. Northfield Bancorp, Inc. (Staten Island, NY) is trading at a lower price-to-earnings ratio than Provident Financial, indicating that it is currently the more affordable of the two stocks.

Dividends

Northfield Bancorp, Inc. (Staten Island, NY) pays an annual dividend of $0.52 per share and has a dividend yield of 3.9%. Provident Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. Northfield Bancorp, Inc. (Staten Island, NY) pays out 38.0% of its earnings in the form of a dividend. Provident Financial pays out 42.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Northfield Bancorp, Inc. (Staten Island, NY) has raised its dividend for 1 consecutive years. Northfield Bancorp, Inc. (Staten Island, NY) is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Northfield Bancorp, Inc. (Staten Island, NY) has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500. Comparatively, Provident Financial has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Northfield Bancorp, Inc. (Staten Island, NY) and Provident Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northfield Bancorp, Inc. (Staten Island, NY) 0 2 0 0 2.00
Provident Financial 0 0 0 0 N/A

Northfield Bancorp, Inc. (Staten Island, NY) presently has a consensus target price of $18.50, indicating a potential upside of 39.10%. Given Northfield Bancorp, Inc. (Staten Island, NY)’s higher probable upside, equities research analysts clearly believe Northfield Bancorp, Inc. (Staten Island, NY) is more favorable than Provident Financial.

Summary

Northfield Bancorp, Inc. (Staten Island, NY) beats Provident Financial on 13 of the 15 factors compared between the two stocks.

About Northfield Bancorp, Inc. (Staten Island, NY) (Get Rating)

Northfield Bancorp, Inc. (Staten Island, NY) operates as the bank holding company for Northfield Bank that provides various banking services primarily to individuals and corporate customers. It accepts various deposits products, including certificates of deposit, passbook, statement, and money market savings accounts; transaction deposit accounts comprising negotiable orders of withdrawal accounts, and interest and non-interest-bearing checking accounts; individual retirement accounts; and brokered deposits. The company also offers various loans comprising multifamily and other commercial real estate loans, construction and land loans, commercial and industrial loans, one-to-four family residential real estate loans, and home equity loans and lines of credit. In addition, it purchases various investment securities, such as mortgage-backed securities and corporate bonds; and deposits funds in other financial institutions, as well as holds mortgage loans, mortgage-backed securities, and other investments. As of December 31, 2021, the company operated 38 full-service banking offices in Staten Island and Brooklyn, New York; and Hunterdon, Middlesex, Mercer, and Union counties, New Jersey. Northfield Bancorp, Inc. (Staten Island, NY) was founded in 1887 and is headquartered in Woodbridge, New Jersey.

About Provident Financial (Get Rating)

Provident Financial Holdings, Inc. operates as the holding company for Provident Savings Bank, F.S.B. that provides community banking services to consumers and small to mid-sized businesses in the Inland Empire region of Southern California. Its deposit products include checking, savings, and money market accounts, as well as time deposits; and loan portfolio consists of single-family, multi-family, commercial real estate, construction, mortgage, commercial business, and consumer loans. The company also offers investment services comprising the sale of investment products, such as annuities and mutual funds; and trustee services for real estate transactions. It operates through 12 full-service banking offices in Riverside County and one full-service banking office in San Bernardino County. The company was founded in 1956 and is based in Riverside, California.

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