First financial savings group (NASDAQ: FSFG – Get a rating) and Finward Bancorp (OTCMKTS: FNWD – Get a rating) are both small cap finance companies, but which is the better investment? We’ll compare the two companies based on their dividend strength, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.
Volatility and risk
First Savings Financial Group has a beta of 0.79, suggesting its stock price is 21% less volatile than the S&P 500. In comparison, Finward Bancorp has a beta of 0.58, suggesting its stock price is 42% less volatile than the S&P 500.
First Savings Financial Group pays an annual dividend of $0.52 per share and has a dividend yield of 2.2%. Finward Bancorp pays an annual dividend of $1.24 per share and has a dividend yield of 3.3%. First Savings Financial Group pays 18.2% of its profits in the form of dividends. Finward Bancorp pays 34.9% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. First Savings Financial Group has increased its dividend for 9 consecutive years.
Valuation and benefits
This table compares the revenue, earnings per share (EPS), and valuation of First Savings Financial Group and Finward Bancorp.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|First savings financial group||$185.70 million||0.92||$29.57 million||$2.85||8.33|
|Finward Bancorp||$66.60 million||2.42||$14.96 million||$3.55||10:55|
First Savings Financial Group has higher revenue and profit than Finward Bancorp. First Savings Financial Group trades at a lower price-to-earnings ratio than Finward Bancorp, indicating that it is currently the more affordable of the two stocks.
This table compares the net margins, return on equity and return on assets of First Savings Financial Group and Finward Bancorp.
|Net margins||Return on equity||return on assets|
|First savings financial group||15.08%||11.34%||1.17%|
This is a breakdown of the current ratings of First Savings Financial Group and Finward Bancorp, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|First savings financial group||0||0||1||0||3.00|
First Savings Financial Group currently has a consensus target price of $30.00, indicating a potential upside of 26.42%. Finward Bancorp has a consensus target price of $56.00, indicating a potential upside of 49.53%. Given Finward Bancorp’s likely higher upside, analysts clearly believe that Finward Bancorp is more favorable than First Savings Financial Group.
Insider and Institutional Ownership
30.5% of the shares of First Savings Financial Group are held by institutional investors. By comparison, 11.7% of Finward Bancorp’s shares are held by institutional investors. 14.3% of the shares of First Savings Financial Group are held by insiders of the company. By comparison, 15.3% of Finward Bancorp’s shares are held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock is poised for long-term growth.
First Savings Financial Group beats Finward Bancorp on 8 out of 15 factors compared between the two stocks.
First Savings Financial Group Company Profile (Get a rating)
First Savings Financial Group, Inc. operates as a bank holding company for First Savings Bank which provides various financial services to consumers and businesses in southern Indiana. The Company operates through three segments: Core Banking, SBA Lending and Mortgage Banking. It accepts deposits, such as checking accounts, NOW and money market accounts, regular savings accounts, and term deposits. The Company also offers loans, including residential real estate for one to four families, commercial real estate, construction loans, land and land development, multi-family real estate and commercial business loans, as well as consumer loans, such as auto loans, home equity lines of credit, unsecured loans and loans secured by deposits. Additionally, he is involved in mortgage banking; investment activities; and the provision of property and casualty insurance and reinsurance products to other third-party insurance captives. The company operates 15 branches. First Savings Financial Group, Inc. was incorporated in 2008 and is based in Jeffersonville, Indiana.
Finward Bancorp Company Profile (Get a rating)
Finward Bancorp operates as a holding company for Peoples Bank which provides various banking products and services. The Company’s deposit products include interest-free and interest-bearing current accounts, savings accounts, money market deposit accounts, certificate accounts and retirement savings plans. Its lending product portfolio includes residential mortgages that allow borrowers to purchase existing homes, refinance existing homes or build new homes; construction loans mainly to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities. The company also offers estate and retirement planning services, guardianships, land trusts, profit sharing and 401(k) retirement plans, IRA and Keogh accounts and investment agency accounts, as well as the personal representative of the estates and acts as a fiduciary. for revocable and irrevocable trusts. In addition, it provides insurance and annuity investments to wealth management clients; owns real estate; and operates as a real estate investment trust. As of March 2, 2022, the company operated through 30 locations in Lake and Porter counties in northwestern Indiana and southern Chicagoland. The company was formerly known as NorthWest Indiana Bancorp and changed its name to Finward Bancorp in May 2021. Finward Bancorp was incorporated in 1994 and is headquartered in Munster, Indiana.
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