Northeast Community Bancorp (OTCMKTS:NECB) versus Heritage Financial (NASDAQ:HFWA) Head-To-Head Survey

Northeast Community Bancorp (OTCMKTS:NECBGet Rating) and Heritage Financial (NASDAQ:HFWAGet Rating) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Valuation and Earnings

This table compares Northeast Community Bancorp and Heritage Financial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Northeast Community Bancorp $50.76 million 3.61 $11.90 million N/A N/A
Heritage Financial $247.45 million 3.63 $98.04 million $2.59 9.89

Heritage Financial has higher revenue and earnings than Northeast Community Bancorp.

Insider & Institutional Ownership

21.0% of Northeast Community Bancorp shares are held by institutional investors. Comparatively, 79.7% of Heritage Financial shares are held by institutional investors. 0.9% of Northeast Community Bancorp shares are held by insiders. Comparatively, 1.8% of Heritage Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Northeast Community Bancorp and Heritage Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northeast Community Bancorp 0 0 1 0 3.00
Heritage Financial 0 0 0 0 N/A

Northeast Community Bancorp currently has a consensus target price of $12.50, suggesting a potential upside of 11.81%. Given Northeast Community Bancorp’s higher probable upside, equities analysts clearly believe Northeast Community Bancorp is more favorable than Heritage Financial.

Volatility & Risk

Northeast Community Bancorp has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Heritage Financial has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Dividends

Northeast Community Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 2.1%. Heritage Financial pays an annual dividend of $0.84 per share and has a dividend yield of 3.3%. Heritage Financial pays out 32.4% of its earnings in the form of a dividend. Heritage Financial has increased its dividend for 8 consecutive years. Heritage Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Northeast Community Bancorp and Heritage Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northeast Community Bancorp 23.45% 5.82% 1.09%
Heritage Financial 38.18% 10.94% 1.26%

Summary

Heritage Financial beats Northeast Community Bancorp on 10 of the 14 factors compared between the two stocks.

Northeast Community Bancorp Company Profile (Get Rating)

Northeast Community Bancorp, Inc. operates as the holding company for NorthEast Community Bank that provides financial services for individuals and businesses. It accepts various deposit instruments, including checking accounts, money market accounts, regular savings accounts, and non-interest bearing demand accounts. The company also offers construction, commercial and industrial, multifamily and mixed-use real estate, non-residential real estate loans, and consumer loans. In addition, it invests in various types of liquid assets, including U.S. Treasury obligations, municipal securities, deposits at the Federal Home Loan Bank of New York, and certificates of deposit of federally insured institutions, as well as securities of various federal agencies, and of state and municipal governments. Further, the company offers investment advisory and financial planning services; and life insurance products and fixed-rate annuities. It operates six full-service branches in New York and three full-service branches in Massachusetts; and loan production offices in White Plains and New City, New York. The company was founded in 1934 and is based in White Plains, New York.

Heritage Financial Company Profile (Get Rating)

Heritage Financial Corporation operates as the bank holding company for Heritage Bank that provides various financial services to small and medium sized businesses and individuals in the United States. The company accepts various deposit products, such as noninterest demand deposits, interest bearing demand deposits, money market accounts, savings accounts, personal checking accounts, and certificates of deposit. Its loan portfolio includes commercial and industrial loans, owner-occupied and non-owner occupied commercial real estate loans, one-to-four family residential loans, real estate construction and land development loans, consumer loans, commercial business loans, lines of credit, term equipment financing, and term real estate loans, as well as commercial business loans to a range of businesses in industries that include real estate and rental and leasing, healthcare, accommodation and food services, retail trade, and construction. The company also originates loans that are guaranteed by the U.S. Small Business Administration; and offers trust services, as well as objective advice. As of January 27, 2022, it had a network of 49 banking offices located in Washington and Oregon. The company was formerly known as Heritage Financial Corporation, M.H.C. and changed its name to Heritage Financial Corporation in 1998. Heritage Financial Corporation was founded in 1927 and is headquartered in Olympia, Washington.

Receive News & Ratings for Northeast Community Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Northeast Community Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.