Financial Analysis: Northpointe Bancshares (NPB) & The Competition

Northpointe Bancshares (NYSE:NPB) is one of 69 publicly-traded companies in the “FIN – SVGS & LOAN” industry, but how does it contrast to its peers? We will compare Northpointe Bancshares to related businesses based on the strength of its institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Valuation and Earnings

This table compares Northpointe Bancshares and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Northpointe Bancshares	$390.45 million	$55.16 million	10.11
Northpointe Bancshares Competitors	$239.82 million	$34.74 million	16.60

Northpointe Bancshares has higher revenue and earnings than its peers. Northpointe Bancshares is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Northpointe Bancshares pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. Northpointe Bancshares pays out 6.4% of its earnings in the form of a dividend. As a group, “FIN – SVGS & LOAN” companies pay a dividend yield of 2.8% and pay out 29.2% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings for Northpointe Bancshares and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northpointe Bancshares	1	1	2	0	2.25
Northpointe Bancshares Competitors	530	1650	845	41	2.13

Northpointe Bancshares presently has a consensus target price of $18.92, indicating a potential upside of 19.18%. As a group, “FIN – SVGS & LOAN” companies have a potential upside of 18.88%. Given Northpointe Bancshares’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Northpointe Bancshares is more favorable than its peers.

Insider & Institutional Ownership

50.0% of shares of all “FIN – SVGS & LOAN” companies are held by institutional investors. 18.4% of Northpointe Bancshares shares are held by company insiders. Comparatively, 8.8% of shares of all “FIN – SVGS & LOAN” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Northpointe Bancshares and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northpointe Bancshares	N/A	N/A	N/A
Northpointe Bancshares Competitors	12.00%	4.86%	0.77%

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.