Comparing ConnectOne Bancorp (NASDAQ:CNOB) and Amalgamated Financial (NASDAQ:AMAL)

ConnectOne Bancorp (NASDAQ:CNOB) and Amalgamated Financial (NASDAQ:AMAL) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.

Volatility and Risk

ConnectOne Bancorp has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Amalgamated Financial has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.

Dividends

ConnectOne Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 3.2%. Amalgamated Financial pays an annual dividend of $0.56 per share and has a dividend yield of 1.9%. ConnectOne Bancorp pays out 38.9% of its earnings in the form of a dividend. Amalgamated Financial pays out 16.6% 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. ConnectOne Bancorp has increased its dividend for 4 consecutive years and Amalgamated Financial has increased its dividend for 4 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and target prices for ConnectOne Bancorp and Amalgamated Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ConnectOne Bancorp	0	0	3	0	3.00
Amalgamated Financial	0	1	2	0	2.67

ConnectOne Bancorp presently has a consensus price target of $28.50, suggesting a potential upside of 25.05%. Amalgamated Financial has a consensus price target of $36.50, suggesting a potential upside of 23.44%. Given ConnectOne Bancorp’s stronger consensus rating and higher possible upside, research analysts clearly believe ConnectOne Bancorp is more favorable than Amalgamated Financial.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ConnectOne Bancorp	13.80%	6.77%	0.78%
Amalgamated Financial	24.50%	16.49%	1.30%

Earnings & Valuation

This table compares ConnectOne Bancorp and Amalgamated Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ConnectOne Bancorp	$270.12 million	3.25	$73.79 million	$1.85	12.32
Amalgamated Financial	$319.77 million	2.83	$106.43 million	$3.37	8.77

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

Insider & Institutional Ownership

67.7% of ConnectOne Bancorp shares are owned by institutional investors. Comparatively, 75.9% of Amalgamated Financial shares are owned by institutional investors. 6.2% of ConnectOne Bancorp shares are owned by company insiders. Comparatively, 1.3% of Amalgamated Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

About ConnectOne Bancorp

ConnectOne Bancorp, Inc. operates as the bank holding company for ConnectOne Bank that provides commercial banking products and services for small and mid-sized businesses, local professionals, and individuals in the New York Metropolitan area and South Florida market. The company offers personal and business checking, money market, and time and savings accounts; credit cards, wire transfers, safe deposit boxes, automated teller services and telephone, and internet and mobile banking. It provides retirement accounts, consumers and cash management services for business clients, including treasury direct, automated clearing house, remote deposit capture, and digital invoicing. In addition, the company offers consumer and commercial business loans, including lines of credit, commercial and residential mortgages, home equity and bridge loans, and other personal loans; commercial loans secured by collateral, such as business assets comprising accounts receivable, inventory and equipment, and mortgages filed on commercial and residential real estate, as well as cash balances and marketable securities. Further, it provides real estate loans, which includes loans secured by first liens on completed commercial properties, including multi-family properties, to purchase or refinance properties; residential mortgages, such as loans secured by first liens on 1-4 family and condominium; and cooperative residential real estate loans. The company was formerly known as Center Bancorp, Inc. and changed its name to ConnectOne Bancorp, Inc. in July 2014. ConnectOne Bancorp, Inc. was incorporated in 1982 and is headquartered in Englewood Cliffs, New Jersey.

About Amalgamated Financial

Amalgamated Financial Corp. operates as the bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services for commercial and retail customers in the United States. The company accepts various deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts, NOW accounts, and certificates of deposit. It also provides various commercial loans comprising commercial and industrial, multifamily mortgage, and commercial real estate loans; residential mortgage loans; and retail loans, such as residential real estate, consumer solar, and consumer and other loans. In addition, the company offers online banking, bill payment, online cash management, and safe deposit box rental services; debit and ATM cards; and trust, custody, and investment management services comprising asset safekeeping, corporate actions, income collections, proxy, account transition, asset transfers, and conversion management services. Further, it provides investment products, such as funds spanning equity, fixed-income, real estate, and alternative investment products; and brokerage, asset management, and insurance products. Amalgamated Financial Corp. was founded in 1923 and is headquartered in New York, New York.