Contrasting Norwood Financial (NASDAQ:NWFL) and Village Bank and Trust Financial (NASDAQ:VBFC)

Norwood Financial (NASDAQ:NWFL) and Village Bank and Trust Financial (NASDAQ:VBFC) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares Norwood Financial and Village Bank and Trust Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Norwood Financial 22.19% 9.57% 1.06%
Village Bank and Trust Financial 18.92% 14.30% 1.05%

Analyst Recommendations

This is a summary of current recommendations and price targets for Norwood Financial and Village Bank and Trust Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Norwood Financial 0 0 1 0 3.00
Village Bank and Trust Financial 0 0 0 0 N/A

Earnings & Valuation

This table compares Norwood Financial and Village Bank and Trust Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Norwood Financial $54.06 million 3.90 $14.22 million N/A N/A
Village Bank and Trust Financial $31.40 million 1.40 $4.48 million N/A N/A

Norwood Financial has higher revenue and earnings than Village Bank and Trust Financial.

Volatility and Risk

Norwood Financial has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, Village Bank and Trust Financial has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.

Institutional & Insider Ownership

17.0% of Norwood Financial shares are held by institutional investors. Comparatively, 8.8% of Village Bank and Trust Financial shares are held by institutional investors. 6.6% of Norwood Financial shares are held by company insiders. Comparatively, 10.5% of Village Bank and Trust Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Norwood Financial beats Village Bank and Trust Financial on 8 of the 11 factors compared between the two stocks.

Norwood Financial Company Profile

Norwood Financial Corp. operates as the bank holding company for Wayne Bank that provides various banking products and services. The company accepts a range of deposit products, including interest-bearing and non-interest bearing transaction accounts, and statement savings and money market accounts, as well as certificate of deposits. It also provides various loans, such as commercial loans comprising lines of credit, revolving credit, term loans, mortgages, secured lending products, and letter of credit facilities; municipal finance lending; construction loans for commercial construction projects and single-family residences; land loans; consumer loans; mortgage lending to finance principal residences and second home dwellings; and indirect dealer financing of new and used automobiles, boats, and recreational vehicles. In addition, the company offers investment securities services; trust and investment products; and cash management, direct deposit, remote deposit capture, mobile deposit capture, mobile payment, automated clearing house activity, title and real estate settlement, and Internet and mobile banking services. Further, it is involved in the annuity and mutual fund sale, and discount brokerage activities, as well as insurance agency business. The company serves consumers, businesses, nonprofit organizations, and municipalities. It operates 14 offices in Northeastern Pennsylvania; and 12 offices in Delaware and Sullivan Counties, New York, as well as 27 automated teller machines. The company was founded in 1870 and is headquartered in Honesdale, Pennsylvania.

Village Bank and Trust Financial Company Profile

Village Bank and Trust Financial Corp. operates as the bank holding company for Village Bank that provides banking and related financial services to small and medium sized businesses, professionals, and individuals. The company operates in two segments, Traditional Commercial Banking and Mortgage Banking. It accepts checking, savings, money market, and individual retirement accounts, as well as certificates of deposit and other depository services. The company also provides secured and unsecured commercial loans to small- and medium-sized businesses for various purposes, such as funding working capital needs, business expansion, and purchase of equipment and machinery; loans for acquiring, developing, constructing, and owning commercial real estate properties; and secured and unsecured consumer loans for financing automobiles, home improvements, education, and personal investments, as well as originates residential mortgage loans for sale in the secondary market. In addition, it offers online banking, mobile banking, and remote deposit capture services for business clients. The company provides its products and services through 10 full-service branch banking offices and 1 mortgage loan production office in Central Virginia in the counties of Chesterfield, Hanover, Henrico, Powhatan, and James City. Village Bank and Trust Financial Corp. was founded in 1999 and is headquartered in Midlothian, Virginia.

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