Reviewing Northeast Bank (NASDAQ:NBN) and First Interstate BancSystem (NASDAQ:FIBK)

First Interstate BancSystem (NASDAQ:FIBK) and Northeast Bank (NASDAQ:NBN) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Dividends

First Interstate BancSystem pays an annual dividend of $1.88 per share and has a dividend yield of 7.0%. Northeast Bank pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. First Interstate BancSystem pays out 89.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Northeast Bank pays out 0.5% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares First Interstate BancSystem and Northeast Bank”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Interstate BancSystem	$1.00 billion	2.81	$226.00 million	$2.11	12.82
Northeast Bank	$170.62 million	4.02	$58.23 million	$8.59	9.73

First Interstate BancSystem has higher revenue and earnings than Northeast Bank. Northeast Bank is trading at a lower price-to-earnings ratio than First Interstate BancSystem, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

88.7% of First Interstate BancSystem shares are owned by institutional investors. 8.2% of First Interstate BancSystem shares are owned by insiders. Comparatively, 14.2% of Northeast Bank shares are owned 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.

Profitability

This table compares First Interstate BancSystem and Northeast Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Interstate BancSystem	15.94%	6.92%	0.75%
Northeast Bank	22.87%	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and price targets for First Interstate BancSystem and Northeast Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Interstate BancSystem	2	2	3	0	2.14
Northeast Bank	0	1	1	0	2.50

First Interstate BancSystem currently has a consensus target price of $35.00, indicating a potential upside of 29.39%. Northeast Bank has a consensus target price of $97.50, indicating a potential upside of 16.67%. Given First Interstate BancSystem’s higher possible upside, equities research analysts plainly believe First Interstate BancSystem is more favorable than Northeast Bank.

Volatility & Risk

First Interstate BancSystem has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Northeast Bank has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Summary

First Interstate BancSystem beats Northeast Bank on 9 of the 16 factors compared between the two stocks.

About First Interstate BancSystem

First Interstate BancSystem, Inc. operates as the bank holding company for First Interstate Bank that provides range of banking products and services in the United States. It offers various traditional depository products, including checking, savings, and time deposits; and repurchase agreements primarily for commercial and municipal depositors. The company also offers real estate loans comprising commercial real estate, construction, residential, agricultural, and other real estate loans; consumer loans comprising direct personal loans, credit card loans and lines of credit, and indirect loans; variable and fixed rate commercial loans for small and medium-sized manufacturing, wholesale, retail, and service businesses for working capital needs and business expansions; and agricultural loans. In addition, it provides a range of trust, employee benefit, investment management, insurance, agency, and custodial services to individuals, businesses, and nonprofit organizations. Further, the company offers marketing, credit review, loan servicing, credit cards issuance and servicing, mortgage loan sales and servicing, indirect consumer loan purchasing and processing, loan collection services, other operational, and specialized staff support services, as well as online and mobile banking services. The company serves individuals, businesses, municipalities, and other entities in various industries, including agriculture, construction, education, governmental services, healthcare, hospitality, housing, professional services, real estate development, retail, technology, tourism, and wholesale trade. First Interstate BancSystem, Inc. was incorporated in 1971 and is headquartered in Billings, Montana.

About Northeast Bank

Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. Further, it provides various services, such as money market, merchant, and payroll and HR. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.