BankUnited (NASDAQ: NFBK) and Northfield Bancorp (NASDAQ:NFBK) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Volatility & Risk
BankUnited has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Northfield Bancorp has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500.
Insider & Institutional Ownership
94.7% of BankUnited shares are held by institutional investors. Comparatively, 55.2% of Northfield Bancorp shares are held by institutional investors. 2.3% of BankUnited shares are held by company insiders. Comparatively, 9.2% of Northfield Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares BankUnited and Northfield Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares BankUnited and Northfield Bancorp’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BankUnited||$1.36 billion||3.05||$614.27 million||$2.65||14.86|
|Northfield Bancorp||$144.51 million||5.56||$24.76 million||$0.73||22.23|
BankUnited has higher revenue and earnings than Northfield Bancorp. BankUnited is trading at a lower price-to-earnings ratio than Northfield Bancorp, indicating that it is currently the more affordable of the two stocks.
BankUnited pays an annual dividend of $0.84 per share and has a dividend yield of 2.1%. Northfield Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.5%. BankUnited pays out 31.7% of its earnings in the form of a dividend. Northfield Bancorp pays out 54.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Northfield Bancorp has raised its dividend for 5 consecutive years. Northfield Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current recommendations for BankUnited and Northfield Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
BankUnited presently has a consensus price target of $44.11, suggesting a potential upside of 11.99%. Northfield Bancorp has a consensus price target of $17.67, suggesting a potential upside of 8.85%. Given BankUnited’s stronger consensus rating and higher probable upside, research analysts clearly believe BankUnited is more favorable than Northfield Bancorp.
BankUnited beats Northfield Bancorp on 12 of the 17 factors compared between the two stocks.
BankUnited Company Profile
BankUnited, Inc. operates as the bank holding company for BankUnited, National Association that provides a range of banking services to small and medium sized businesses, and individual and corporate customers in the United States. The company offers deposit products, such as checking, money market deposit, and savings accounts, as well as certificates of deposit; and treasury management services. Its loans portfolio includes small business loans, commercial real estate loans, equipment loans and leases, term loans, formula-based loans, municipal and non-profit loans and leases, commercial and residential mortgage warehouse lines of credit, letters of credit, and consumer loans, as well as purchases performing residential loans. The company also offers integrated on-line, mobile, and telephone banking services. As of December 31, 2017, it operated through a network of 87 branches located in 15 Florida counties; and 6 banking centers in the New York metropolitan area, as well as 89 automated teller machines. The company was formerly known as BU Financial Corporation. BankUnited, Inc. was founded in 2009 and is headquartered in Miami Lakes, Florida.
Northfield Bancorp Company Profile
Northfield Bancorp, Inc. operates as the bank holding company for Northfield Bank that provides various banking products and services primarily to individuals and corporate customers. It accepts various deposits products, including transaction accounts comprising negotiable orders of withdrawal accounts and non-interest bearing checking accounts; savings accounts, such as money market, passbook, and statement savings; certificates of deposit consisting of individual retirement accounts; and brokered deposits. The company also offers various loans comprising multifamily and other commercial real estate loans, construction and land loans, commercial and industrial loans, one-to-four family residential real estate loans, and home equity loans and lines of credit. In addition, it purchases various investment securities, such as mortgage-backed securities and corporate bonds; and deposits funds in other financial institutions, as well as holds primarily mortgage loans and other investments. The company operates through its home office located in Staten Island, New York; operations center located in Woodbridge, New Jersey; 38 additional branch offices located in New York and New Jersey; and a lending office located in Brooklyn, New York. Northfield Bancorp, Inc. was founded in 1887 and is based in Woodbridge, New Jersey.
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