First Financial Northwest (NASDAQ:FFNW) and First National (OTCMKTS:FXNC) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.
Insider & Institutional Ownership
44.9% of First Financial Northwest shares are held by institutional investors. Comparatively, 6.2% of First National shares are held by institutional investors. 6.9% of First Financial Northwest shares are held by insiders. Comparatively, 10.9% of First National shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
First Financial Northwest pays an annual dividend of $0.36 per share and has a dividend yield of 2.4%. First National pays an annual dividend of $0.36 per share and has a dividend yield of 2.0%. First Financial Northwest pays out 25.2% of its earnings in the form of a dividend. First Financial Northwest has raised its dividend for 2 consecutive years. First Financial Northwest is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings and price targets for First Financial Northwest and First National, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Financial Northwest||0||0||1||0||3.00|
Risk & Volatility
First Financial Northwest has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, First National has a beta of 0.09, suggesting that its stock price is 91% less volatile than the S&P 500.
Earnings & Valuation
This table compares First Financial Northwest and First National’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First Financial Northwest||$58.79 million||2.63||$14.90 million||$1.43||10.42|
|First National||$40.29 million||2.25||$10.14 million||N/A||N/A|
First Financial Northwest has higher revenue and earnings than First National.
This table compares First Financial Northwest and First National’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Financial Northwest||16.78%||6.65%||0.80%|
First Financial Northwest beats First National on 9 of the 14 factors compared between the two stocks.
About First Financial Northwest
First Financial Northwest, Inc. operates as the holding company for First Financial Northwest Bank that provides commercial banking services in Washington. The company offers a range of deposit products, including noninterest bearing accounts, interest-bearing demand accounts, money market deposit accounts, statement savings accounts, and certificates of deposit. Its loan products comprise one-to-four family residential loans; multifamily and commercial real estate loans; construction/land loans for the construction of single-family residences, condominiums, townhouses, multifamily properties, and residential developments; business loans; and consumer loans, such as home equity loans and savings account loans. The company primarily serves the greater Puget Sound region of King, as well as Pierce, Snohomish, and Kitsap counties, Washington through its full-service banking office in Renton, Washington; and nine additional branches in King and Snohomish counties, Washington. First Financial Northwest, Inc. was founded in 1923 and is based in Renton, Washington.
About First National
First National Corporation operates as the bank holding company for First Bank that provides a range of banking services to small and medium-sized businesses, individuals, estates, local governmental entities, and non-profit organizations in Virginia. The company's deposit products include checking, savings, money market, individual retirement, certificates of deposit, and cash management accounts, as well as treasury management solutions. Its loan products comprise construction loans, including residential, land acquisition, and development loans; 1-4 family residential real estate loans; and commercial real estate loans that are secured by various types of commercial real estate, including multi-family residential buildings, office and retail buildings, hotels, industrial buildings, and religious facilities. The company's loan products also include commercial and industrial loans that are secured by business assets, such as accounts receivable, equipment, and inventory; home equity loans; and secured and unsecured consumer loans, such as lines of credit, automobile loans, deposit account loans, and installment and demand loans. In addition, it provides wealth management services, including estate planning, investment management of assets, trustee under an agreement, trustee under a will, and estate settlement. Further, the company offers title insurance and investment services; and holds other real estate owned and office sites. Additionally, it provides Internet banking, mobile banking, remote deposit capture, and other traditional banking services. The company operates through 15 bank branch offices, a loan production office, and a customer service center, as well as a network of ATMs. First National Corporation was founded in 1907 and is headquartered in Strasburg, Virginia.
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