Reviewing Bar Harbor Bankshares (NYSE:BHB) and Northpointe Bancshares (NYSE:NPB)

Bar Harbor Bankshares (NYSE:BHB) and Northpointe Bancshares (NYSE:NPB) are both small-cap financial services companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Earnings and Valuation

This table compares Bar Harbor Bankshares and Northpointe Bancshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bar Harbor Bankshares	$150.40 million	3.11	$43.65 million	$2.85	10.70
Northpointe Bancshares	$187.14 million	2.56	N/A	N/A	N/A

Bar Harbor Bankshares has higher earnings, but lower revenue than Northpointe Bancshares.

Analyst Recommendations

This is a breakdown of recent ratings for Bar Harbor Bankshares and Northpointe Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bar Harbor Bankshares	0	0	0	0	0.00
Northpointe Bancshares	0	0	2	0	3.00

Northpointe Bancshares has a consensus price target of $17.25, indicating a potential upside of 23.74%. Given Northpointe Bancshares’ stronger consensus rating and higher possible upside, analysts clearly believe Northpointe Bancshares is more favorable than Bar Harbor Bankshares.

Dividends

Bar Harbor Bankshares pays an annual dividend of $1.28 per share and has a dividend yield of 4.2%. Northpointe Bancshares pays an annual dividend of $0.10 per share and has a dividend yield of 0.7%. Bar Harbor Bankshares pays out 44.9% of its earnings in the form of a dividend. Bar Harbor Bankshares has raised its dividend for 22 consecutive years. Bar Harbor Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Bar Harbor Bankshares and Northpointe Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bar Harbor Bankshares	N/A	N/A	N/A
Northpointe Bancshares	N/A	N/A	N/A

Institutional & Insider Ownership

54.5% of Bar Harbor Bankshares shares are owned by institutional investors. 2.6% of Bar Harbor Bankshares shares are owned by insiders. Comparatively, 18.4% of Northpointe Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Northpointe Bancshares beats Bar Harbor Bankshares on 6 of the 10 factors compared between the two stocks.

About Bar Harbor Bankshares

Bar Harbor Bankshares operates as the holding company for Bar Harbor Bank & Trust that provides commercial, lending, retail, and wealth management banking services. It accepts various deposit products, including interest-bearing and non-interest-bearing demand accounts, savings accounts, time deposits, and money market deposit accounts, as well as certificates of deposit. The company also provides commercial real estate loans, such as multi-family, commercial construction and land development, and other commercial real estate classes; commercial and industrial loans, including loans to commercial and agricultural businesses, and tax exempt entities; residential real estate loans consists of mortgages for 1-4 family housing; and consumer loans comprises home equity loans, lines of credit, auto, and other installment lending. In addition, it provides life insurance, annuity, and retirement products, as well as financial planning services; and third-party investment and insurance services. Further, the company offers trust and estate administration, wealth advisory, and investment management services to individuals, businesses, not-for-profit organizations, and municipalities; and 401K plan, financial, estate and charitable planning, investment management, family office, municipal, and tax services. It operates 53 locations across Maine, New Hampshire, and Vermont. The company was founded in 1887 and is based in Bar Harbor, Maine.

About Northpointe Bancshares

Northpointe Bancshares, Inc. operates as a bank holding company. It offers a nationwide mortgage purchase program, residential mortgage loans, digital deposit banking to retail customers and custodial deposit services. The company was founded by Charles A. Williams in 1998 and is headquartered in Grand Rapids, MI.