Comparing FFW (OTCMKTS:FFWC) & Pathfinder Bancorp (NASDAQ:PBHC)

FFW (OTCMKTS:FFWC) and Pathfinder Bancorp (NASDAQ:PBHC) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Institutional & Insider Ownership

26.7% of Pathfinder Bancorp shares are held by institutional investors. 17.0% of FFW shares are held by insiders. Comparatively, 15.4% of Pathfinder Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares FFW and Pathfinder Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FFW	$32.63 million	1.52	$5.54 million	$5.32	8.56
Pathfinder Bancorp	$46.71 million	1.55	$3.38 million	$1.20	12.58

FFW has higher earnings, but lower revenue than Pathfinder Bancorp. FFW is trading at a lower price-to-earnings ratio than Pathfinder Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

FFW pays an annual dividend of $1.24 per share and has a dividend yield of 2.7%. Pathfinder Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.6%. FFW pays out 23.3% of its earnings in the form of a dividend. Pathfinder Bancorp pays out 33.3% 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. Pathfinder Bancorp has increased its dividend for 1 consecutive years. FFW is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings for FFW and Pathfinder Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FFW	0	0	0	0	0.00
Pathfinder Bancorp	0	1	0	0	2.00

Profitability

This table compares FFW and Pathfinder Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FFW	17.68%	N/A	N/A
Pathfinder Bancorp	2.98%	2.15%	0.18%

Risk & Volatility

FFW has a beta of -0.07, suggesting that its share price is 107% less volatile than the S&P 500. Comparatively, Pathfinder Bancorp has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500.

Summary

Pathfinder Bancorp beats FFW on 9 of the 15 factors compared between the two stocks.

About FFW

FFW Corporation operates as the bank holding company for Crossroads Bank that provides various banking products and services. The company offers checking and savings accounts, overdraft protection, consumer credit cards, and reorder checks. Its loan products include home equity, auto, RV, boat, motorcycle, and personal loans; mortgage loans; agricultural loans; commercial real estate equipment financing; revolving lines of credit and standby letters of credit; and equipment leasing, as well as commercial lending services. The company offers insurance products, such as auto, home and property, business, life and health, and specialty insurance; investment products and securities; and digital banking services. FFW Corporation was founded in 1920 and is based in Wabash, Indiana.

About Pathfinder Bancorp

Pathfinder Bancorp, Inc. operates as a bank holding company for Pathfinder Bank that provides various banking and financial products and services in New York. The company's deposit products include checking, savings, and money market deposit accounts; certificates of deposit; and demand and time deposits. Its loan portfolio comprises commercial real estate, commercial, residential real estate, construction, and tax-exempt loans; home equity loans and junior liens; and consumer loans comprising automobile, recreational vehicles, and unsecured personal loans, as well as unsecured lines of credit and loans secured by deposit accounts. The company is also involved in the property, casualty, and life insurance brokerage business. It primarily serves individuals, families, small to mid-size businesses, and municipalities. The company was founded in 1859 and is headquartered in Oswego, New York.