Analyzing Brunswick Bancorp (OTCMKTS:BRBW) and OFG Bancorp (NYSE:OFG)

OFG Bancorp (NYSE:OFG) and Brunswick Bancorp (OTCMKTS:BRBW) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Profitability

This table compares OFG Bancorp and Brunswick Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OFG Bancorp	23.62%	16.25%	1.75%
Brunswick Bancorp	20.13%	N/A	N/A

Institutional & Insider Ownership

92.7% of OFG Bancorp shares are owned by institutional investors. Comparatively, 2.5% of Brunswick Bancorp shares are owned by institutional investors. 3.1% of OFG Bancorp shares are owned by 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.

Earnings and Valuation

This table compares OFG Bancorp and Brunswick Bancorp’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OFG Bancorp	$770.73 million	2.13	$181.87 million	$3.82	9.11
Brunswick Bancorp	$16.41 million	2.75	$3.85 million	$1.21	13.22

OFG Bancorp has higher revenue and earnings than Brunswick Bancorp. OFG Bancorp is trading at a lower price-to-earnings ratio than Brunswick Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for OFG Bancorp and Brunswick Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OFG Bancorp	0	0	1	0	3.00
Brunswick Bancorp	0	0	0	0	N/A

OFG Bancorp currently has a consensus price target of $40.00, indicating a potential upside of 14.91%. Given OFG Bancorp’s higher probable upside, research analysts plainly believe OFG Bancorp is more favorable than Brunswick Bancorp.

Risk & Volatility

OFG Bancorp has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Brunswick Bancorp has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500.

Summary

OFG Bancorp beats Brunswick Bancorp on 11 of the 13 factors compared between the two stocks.

About OFG Bancorp

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, and individual retirement accounts; certificate of deposits, as well as time deposit products; commercial, consumer, auto leasing, and mortgage lending services; credit cards; cash management; financial planning and insurance services; and corporate and individual trust, and retirement services. In addition, it provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. Further, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; and various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments. Additionally, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company provides investment brokerage, transactional, international trade financing, residential mortgage, and consumer finance services. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.

About Brunswick Bancorp

Brunswick Bancorp is a bank holding company, which engages in the provision of consumer and commercial banking services. It offers personal banking, checking, certificate of deposit accounts, business checking, equipment leasing, commercial mortgages, small business loans, construction loans, and merchant services. The company was founded in 1984 and is headquartered in New Brunswick, NJ.