Head to Head Analysis: OFG Bancorp (NYSE:OFG) & NSTS Bancorp (NASDAQ:NSTS)

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

Insider & Institutional Ownership

92.7% of OFG Bancorp shares are owned by institutional investors. Comparatively, 23.7% of NSTS Bancorp shares are owned by institutional investors. 1.2% of OFG Bancorp shares are owned by company insiders. Comparatively, 6.2% of NSTS Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares OFG Bancorp and NSTS Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OFG Bancorp	23.45%	15.62%	1.74%
NSTS Bancorp	-2.91%	-0.49%	-0.14%

Valuation & Earnings

This table compares OFG Bancorp and NSTS Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OFG Bancorp	$902.28 million	2.15	$205.10 million	$4.58	9.99
NSTS Bancorp	$13.27 million	4.95	-$390,000.00	($0.08)	-156.25

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

Analyst Recommendations

This is a summary of current ratings and target prices for OFG Bancorp and NSTS Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OFG Bancorp	0	4	3	0	2.43
NSTS Bancorp	1	0	0	0	1.00

OFG Bancorp presently has a consensus price target of $47.67, suggesting a potential upside of 4.22%. Given OFG Bancorp’s stronger consensus rating and higher possible upside, equities research analysts clearly believe OFG Bancorp is more favorable than NSTS Bancorp.

Volatility & Risk

OFG Bancorp has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, NSTS Bancorp has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500.

Summary

OFG Bancorp beats NSTS Bancorp on 12 of the 14 factors compared between the two stocks.

About OFG Bancorp

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, and individual retirement accounts; certificate of deposits, as well as time deposit products; commercial, consumer, auto leasing, and mortgage lending services; credit cards; cash management; financial planning and insurance services; and corporate and individual trust, and retirement services. In addition, it provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. Further, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; and various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments. Additionally, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company provides investment brokerage, transactional, international trade financing, residential mortgage, and consumer finance services. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.

About NSTS Bancorp

NSTS Bancorp, Inc. operates as a savings and loan holding company for North Shore Trust and Savings that provides banking products and services in Illinois. The company offers interest-bearing and noninterest-bearing checking, money market, savings, and time deposit accounts; and one- to four-family residential mortgage, multi-family and commercial real estate mortgage, construction, home equity, and consumer loans. It operates through full-service banking offices in Lake County, Illinois; and one loan production office in Chicago. The company was founded in 1921 and is headquartered in Waukegan, Illinois.