Contrasting Northeast Indiana Bancorp (OTCMKTS:NIDB) and Territorial Bancorp (OTCMKTS:TBNK)

Territorial Bancorp (NASDAQ:TBNK) and Northeast Indiana Bancorp (OTCMKTS:NIDB) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Profitability

This table compares Territorial Bancorp and Northeast Indiana Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Territorial Bancorp 26.37% 9.09% 1.06%
Northeast Indiana Bancorp 24.14% N/A N/A

Analyst Recommendations

This is a summary of recent ratings and target prices for Territorial Bancorp and Northeast Indiana Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Territorial Bancorp 0 1 0 0 2.00
Northeast Indiana Bancorp 0 0 0 0 N/A

Dividends

Territorial Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 3.1%. Northeast Indiana Bancorp pays an annual dividend of $1.08 per share and has a dividend yield of 2.6%. Territorial Bancorp pays out 39.3% of its earnings in the form of a dividend. Territorial Bancorp has increased its dividend for 7 consecutive years. Territorial Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Territorial Bancorp has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Northeast Indiana Bancorp has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500.

Valuation & Earnings

This table compares Territorial Bancorp and Northeast Indiana Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Territorial Bancorp $83.40 million 3.48 $22.00 million $2.34 12.82
Northeast Indiana Bancorp $19.42 million 2.62 $4.69 million N/A N/A

Territorial Bancorp has higher revenue and earnings than Northeast Indiana Bancorp.

Institutional & Insider Ownership

48.1% of Territorial Bancorp shares are owned by institutional investors. 10.8% of Territorial Bancorp shares are owned by insiders. Comparatively, 19.8% of Northeast Indiana Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Territorial Bancorp beats Northeast Indiana Bancorp on 11 of the 13 factors compared between the two stocks.

About Territorial Bancorp

Territorial Bancorp, Inc. operates as the bank holding company for Territorial Savings Bank, which provides financial services to individuals, families, and businesses in Hawaii. Its business consists primarily of accepting deposits from the general public and investing those deposits, together with funds generated from operations and borrowings, in one- to four-family residential mortgage loans and investment securities. The firm operates through the following portfolio segments: Residential Mortgage; Construction, Commercial and Other Mortgage Loans; Home Equity Loans and Lines of Credit; and Consumer and Other. It also offers deposit accounts, including passbook and statement savings accounts, certificates of deposit, money market accounts, commercial, and regular checking accounts. The company was founded on November 3, 2008 and is headquartered in Honolulu, HI.

About Northeast Indiana Bancorp

Northeast Indiana Bancorp, Inc. operates as the bank holding company for First Federal Savings Bank that provides various banking and financial advisory services. It offers various personal products, including checking accounts, savings accounts, certificates of deposit, retirement accounts, health savings accounts, and direct deposits. The company's loan portfolio comprises mortgage loans, such as home purchases, refinances, new construction loans, and home equity/home improvement loans; installment loans consisting of auto loans, personal loans, short term notes, and savings account loans, as well as RV, ATV, and boat loans; and commercial loans, including lines of credit, letters of credit, equipment financing, and construction loans, as well as commercial loans comprising revolving line of credit, term loans, real estate loans, letter of credit, and small business administration loans. It also provides debit and credit cards, safe deposit boxes, online banking services, merchant services, and cash management services, as well as treasury management and merchant deposit capture services. In addition, the company offers various financial services to individual and corporate clients, including brokerage accounts, retail funds, and wealth management products, as well as insurance products and retirement plans. Northeast Indiana Bancorp, Inc. operates three full service locations in Huntington; one full service location in Warsaw; and two full service locations in Fort Wayne, Indiana. The company is based in Huntington, Indiana.

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