Sterling Bancorp (NASDAQ:SBT) and First Northern Community Bancorp (NASDAQ:FNRN) Head-To-Head Analysis

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Sterling Bancorp (NASDAQ:SBT) and First Northern Community Bancorp (OTCMKTS:FNRN) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership. Institutional and Insider Ownership 27.1% of Sterling Bancorp […]

Sterling Bancorp (NASDAQ:SBT) and First Northern Community Bancorp (OTCMKTS:FNRN) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Institutional and Insider Ownership

27.1% of Sterling Bancorp shares are held by institutional investors. Comparatively, 7.4% of First Northern Community Bancorp shares are held by institutional investors. 3.0% of Sterling Bancorp shares are held by company insiders. Comparatively, 9.5% of First Northern Community Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Sterling Bancorp and First Northern Community Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sterling Bancorp 30.49% 16.55% 1.73%
First Northern Community Bancorp 23.22% 11.44% 0.93%

Volatility and Risk

Sterling Bancorp has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, First Northern Community Bancorp has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.

Earnings and Valuation

This table compares Sterling Bancorp and First Northern Community Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sterling Bancorp $186.82 million 0.81 $56.95 million N/A N/A
First Northern Community Bancorp $56.19 million 1.80 $14.72 million N/A N/A

Sterling Bancorp has higher revenue and earnings than First Northern Community Bancorp.

Analyst Ratings

This is a breakdown of current recommendations for Sterling Bancorp and First Northern Community Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sterling Bancorp 1 1 0 0 1.50
First Northern Community Bancorp 0 0 0 0 N/A

Sterling Bancorp presently has a consensus price target of $8.25, indicating a potential upside of 172.28%. Given Sterling Bancorp’s higher probable upside, research analysts clearly believe Sterling Bancorp is more favorable than First Northern Community Bancorp.

Summary

Sterling Bancorp beats First Northern Community Bancorp on 8 of the 11 factors compared between the two stocks.

About Sterling Bancorp

Sterling Bancorp, Inc. is a unitary thrift holding company. Its wholly owned subsidiary, Sterling Bank and Trust, F.S.B., has primary branch operations in San Francisco and Los Angeles, California and New York City, and a loan production office in Seattle, Washington. Sterling offers a broad range of loan products to the residential and commercial markets, as well as retail and business banking services. Sterling also has an operations center and a branch in Southfield, Michigan. Sterling was named as the top performing community bank in the United States with total assets between $1 billion and $10 billion in 2017 by SNL/S&P Global Market Intelligence.

About First Northern Community Bancorp

First Northern Community Bancorp operates as the bank holding company for First Northern Bank of Dixon that provides commercial banking products and services to individuals and small to medium sized businesses. The company accepts demand, interest-bearing transaction, savings and money market, and time deposits. Its loan products commercial, commercial real estate, agriculture, residential mortgage, residential construction, and consumer loans. The company also offers credit cards; investment and brokerage services; alternative investment products, and fiduciary and other financial services; and equipment leasing, merchant card processing, payroll, and international banking services through third parties. In addition, it provides issues cashier’s checks; sells travelers’ checks; rents safe deposit boxes; and provides other customary banking services. The company operates 10 full service branches located in the cities of Auburn, Davis, Dixon, Fairfield, Roseville, Sacramento, Vacaville, West Sacramento, Winters, and Woodland; a satellite banking office inside a retirement community in the city of Davis; residential mortgage loan offices in Davis and Sonoma; and a commercial loan office in the Contra Costa County city of Walnut Creek. First Northern Community Bancorp was founded in 1910 and is headquartered in Dixon, California.

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