OceanFirst Financial (NASDAQ:OCFC) and Ottawa Bancorp (OTCMKTS:OTTW) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
Risk and Volatility
OceanFirst Financial has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Ottawa Bancorp has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.
OceanFirst Financial pays an annual dividend of $0.68 per share and has a dividend yield of 2.8%. Ottawa Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.7%. OceanFirst Financial pays out 34.9% of its earnings in the form of a dividend. Ottawa Bancorp pays out 38.1% 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. OceanFirst Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares OceanFirst Financial and Ottawa Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares OceanFirst Financial and Ottawa Bancorp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|OceanFirst Financial||$453.53 million||3.15||$63.31 million||$1.95||12.33|
|Ottawa Bancorp||$15.66 million||2.66||$2.48 million||$1.05||14.05|
OceanFirst Financial has higher revenue and earnings than Ottawa Bancorp. OceanFirst Financial is trading at a lower price-to-earnings ratio than Ottawa Bancorp, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
68.6% of OceanFirst Financial shares are owned by institutional investors. Comparatively, 7.4% of Ottawa Bancorp shares are owned by institutional investors. 3.8% of OceanFirst Financial shares are owned by insiders. Comparatively, 7.8% of Ottawa Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings for OceanFirst Financial and Ottawa Bancorp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
OceanFirst Financial presently has a consensus price target of $24.38, suggesting a potential upside of 1.39%. Given OceanFirst Financial’s higher possible upside, research analysts clearly believe OceanFirst Financial is more favorable than Ottawa Bancorp.
OceanFirst Financial beats Ottawa Bancorp on 13 of the 15 factors compared between the two stocks.
OceanFirst Financial Company Profile
OceanFirst Financial Corp. operates as a savings and loan holding company, which engages in the provision of financial services. Its subsidiary OceanFirst Bank, offers commercial and residential financing solutions, wealth management, and deposit services. It has retail branches throughout the state and in metropolitan New York City along with loan production offices in New Jersey, New York City and Pennsylvania. The company is headquartered in Red Bank, NJ.
Ottawa Bancorp Company Profile
Ottawa Bancorp, Inc. operates as a holding company, which offers residential real estate mortgage loans and home equity lines of credit and to a lesser extent, non-residential real estate, multi-family and construction loans. It also provides commercial and industrial loans and other consumer loans. The firm operates through the following segments: Commercial, �Non-Residential Real Estate, �One-to-four Family Residential, Multi-Family Residential, Consumer Direct, and Purchased Auto. The company was founded on August 21, 1871 and is headquartered in Ottawa, IL.
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