Contrasting OFG Bancorp (NYSE:OFG) & Flushing Financial (NASDAQ:FFIC)

Flushing Financial (NASDAQ:FFICGet Rating) and OFG Bancorp (NYSE:OFGGet Rating) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for Flushing Financial and OFG Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flushing Financial 0 0 0 0 N/A
OFG Bancorp 0 0 2 0 3.00

OFG Bancorp has a consensus target price of $32.67, indicating a potential upside of 25.74%. Given OFG Bancorp’s higher possible upside, analysts clearly believe OFG Bancorp is more favorable than Flushing Financial.

Profitability

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

Net Margins Return on Equity Return on Assets
Flushing Financial 28.96% 13.26% 1.09%
OFG Bancorp 25.87% 14.64% 1.49%

Risk & Volatility

Flushing Financial has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, OFG Bancorp has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Insider & Institutional Ownership

67.4% of Flushing Financial shares are held by institutional investors. Comparatively, 93.5% of OFG Bancorp shares are held by institutional investors. 6.6% of Flushing Financial shares are held by insiders. Comparatively, 2.7% of OFG Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Flushing Financial and OFG Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Flushing Financial $292.25 million 2.08 $81.79 million $2.78 7.31
OFG Bancorp $578.46 million 2.14 $146.15 million $3.07 8.47

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

Dividends

Flushing Financial pays an annual dividend of $0.88 per share and has a dividend yield of 4.3%. OFG Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 2.3%. Flushing Financial pays out 31.7% of its earnings in the form of a dividend. OFG Bancorp pays out 19.5% 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. Flushing Financial has increased its dividend for 1 consecutive years and OFG Bancorp has increased its dividend for 2 consecutive years.

Summary

OFG Bancorp beats Flushing Financial on 13 of the 16 factors compared between the two stocks.

About Flushing Financial

(Get Rating)

Flushing Financial Corporation operates as the bank holding company for Flushing Bank that provides banking products and services primarily to consumers, businesses, and governmental units. It offers various deposit products, including checking and savings accounts, money market accounts, demand accounts, NOW accounts, and certificates of deposit. The company also provides mortgage loans secured by multi-family residential, commercial real estate, one-to-four family mixed-use property, one-to-four family residential property, and commercial business loans; construction loans; small business administration loans and other small business loans; mortgage loan surrogates, such as mortgage-backed securities; and consumer loans, including overdraft lines of credit, as well as the United States government securities, corporate fixed-income securities, and other marketable securities. In addition, it offers banking services to public municipalities comprising counties, cities, towns, villages, school districts, libraries, fire districts, and various courts. As of December 31, 2021, the company operated 24 full-service offices located in the New York City boroughs of Queens, Brooklyn, and Manhattan; and in Nassau and Suffolk County, New York, as well as an Internet branch. Flushing Financial Corporation was founded in 1929 and is based in Uniondale, New York.

About OFG Bancorp

(Get Rating)

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, as well as time deposit products; commercial, consumer, auto, and mortgage lending services; financial planning and insurance services; and corporate and individual trust, and retirement services. It also 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. In addition, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; 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; and management and participation in public offerings and private placements of debt and equity securities. Further, 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 operates through a network of 50 branches in Puerto Rico and 2 branches in USVI. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.

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