Critical Analysis: Northpointe Bancshares (NPB) vs. Its Competitors

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

Profitability

This table compares Northpointe Bancshares and its competitors’ 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%	4.85%	0.77%

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Northpointe Bancshares and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northpointe Bancshares	1	1	2	0	2.25
Northpointe Bancshares Competitors	537	1669	847	43	2.13

Northpointe Bancshares presently has a consensus price target of $18.92, suggesting a potential upside of 13.65%. As a group, “FIN – SVGS & LOAN” companies have a potential upside of 16.71%. Given Northpointe Bancshares’ competitors higher possible upside, analysts plainly believe Northpointe Bancshares has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Northpointe Bancshares and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Northpointe Bancshares	$390.45 million	$55.16 million	10.60
Northpointe Bancshares Competitors	$211.05 million	$34.74 million	14.19

Northpointe Bancshares has higher revenue and earnings than its competitors. Northpointe Bancshares is trading at a lower price-to-earnings ratio than its competitors, 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 29.0% of their earnings in the form of a dividend.

Summary

Northpointe Bancshares competitors beat Northpointe Bancshares on 8 of the 14 factors compared.

Northpointe Bancshares Company Profile

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.