Critical Comparison: Blue Foundry Bancorp (NASDAQ:BLFY) versus Dacotah Banks (OTCMKTS:DBIN)

Blue Foundry Bancorp (NASDAQ:BLFY) and Dacotah Banks (OTCMKTS:DBIN) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Institutional and Insider Ownership

56.5% of Blue Foundry Bancorp shares are held by institutional investors. 6.0% of Blue Foundry Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Blue Foundry Bancorp and Dacotah Banks’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blue Foundry Bancorp	-12.49%	-3.45%	-0.55%
Dacotah Banks	11.94%	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings for Blue Foundry Bancorp and Dacotah Banks, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Foundry Bancorp	0	1	0	0	2.00
Dacotah Banks	0	0	0	0	0.00

Blue Foundry Bancorp currently has a consensus price target of $10.00, suggesting a potential upside of 7.64%. Given Blue Foundry Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Blue Foundry Bancorp is more favorable than Dacotah Banks.

Valuation & Earnings

This table compares Blue Foundry Bancorp and Dacotah Banks”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Foundry Bancorp	$87.25 million	2.29	-$11.91 million	($0.55)	-16.89
Dacotah Banks	$248.97 million	1.64	$29.73 million	$2.67	13.74

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

Volatility and Risk

Blue Foundry Bancorp has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Dacotah Banks has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500.

Summary

Dacotah Banks beats Blue Foundry Bancorp on 7 of the 13 factors compared between the two stocks.

About Blue Foundry Bancorp

Blue Foundry Bancorp operates as a bank holding company for Blue Foundry Bank, a savings bank that offers various banking products and services for individuals and businesses in the United States. The company offers saving, time, and non-interest bearing deposits; demand accounts; and loans, such as one-to-four family residential property, multi-family, residential real estate, non-residential real estate, consumer, construction, and commercial and industrial loans, as well as junior liens and home equity lines of credit. The company was formerly known as Boiling Springs Bancorp and changed its name to Blue Foundry Bancorp in July 2019. Blue Foundry Bancorp was founded in 1939 and is based in Rutherford, New Jersey.

About Dacotah Banks

Dacotah Banks, Inc. provides various banking and financial products and services to individuals and businesses. The company provides demand and certificates of deposit; checking, individual retirement, health savings, and money market accounts; and commercial, commercial real estate, residential mortgage, and consumer loans. It also offers vehicle, boat, motorhome, mortgage, camper, motorcycle, snowmobile, jet SKI, and ATV loans; and unsecured, overdraft protection, and student loans; business, term, and small business administration loans, and other loans. In addition, the company provides credit, debit, and gift cards; mobile and online banking; auto, homeowner, health, and life insurance products; and estate, and trust services. Further, the company offers retirement planning, investment management, foundation, endowment, bill paying, charitable giving, and elder care services, as well as cash management services. Additionally, it provides offers operating lines of credit, state and federal programs, and equipment loans and leases. It also provides crop, homeowner, health, life, farm, and ranch insurance services; and farm and ranch management services. The company operates across various locations in Minnesota, North Dakota, and South Dakota. Dacotah Banks, Inc. was founded in 1955 and is headquartered in Aberdeen, South Dakota.