Suruga Bank and Northeast Bancorp are two small-cap financial institutions that have recently drawn attention for their differing performances and potential for investors. A head-to-head comparison reveals significant disparities in earnings, dividends, and overall risk profiles.
Dividend Analysis
Suruga Bank, headquartered in Numazu, Japan, offers an annual dividend of $2.09 per share, translating to a dividend yield of 2.6%. In contrast, Northeast Bancorp, based in Portland, Maine, pays a much lower annual dividend of $0.04 per share, resulting in a dividend yield of 0.0%. Suruga Bank distributes 22.6% of its earnings as dividends, while Northeast Bancorp allocates just 0.4%. Both companies maintain healthy payout ratios, indicating they can sustain dividend payments in the near future.
Valuation and Earnings Comparison
When examining the financial metrics, Suruga Bank demonstrates stronger revenue and earnings figures compared to Northeast Bancorp. Suruga Bank is currently trading at a lower price-to-earnings ratio than its counterpart, suggesting a more attractive valuation for potential investors.
In terms of risk, Suruga Bank features a beta of -0.08, indicating its share price is significantly less volatile—by 108%—when compared to the S&P 500. Northeast Bancorp has a beta of 0.55, meaning it is 45% less volatile than the benchmark index. This lower volatility may appeal to risk-averse investors looking for stability.
Analyst ratings provide further insight into the potential trajectories of these stocks. Northeast Bancorp has a consensus target price set at $102.00, suggesting a potential downside of 3.78%. Analysts generally favor Northeast Bancorp for its stronger consensus rating and higher upside potential compared to Suruga Bank.
Profitability metrics further illustrate the differences between the two banks. Suruga Bank excels in net margins, return on equity, and return on assets, positioning it favorably in profitability comparisons.
In summary, Northeast Bancorp outperforms Suruga Bank in 10 out of 14 key financial metrics analyzed. This suggests that while both institutions are viable options for investors, Northeast Bancorp may present a more favorable investment opportunity based on current data.
Company Profiles
Suruga Bank Ltd. was established in 1895 and provides a range of banking and financial services to individuals and corporate clients in Japan. Its offerings include various deposit products, loans, credit cards, and investment services, among others.
On the other hand, Northeast Bank, founded in 1872, specializes in banking services across Maine. The bank’s portfolio includes various loans such as residential mortgages and commercial real estate loans, alongside deposit accounts and digital banking services.
As investors weigh their options, these insights into Suruga Bank and Northeast Bancorp will be crucial in making informed decisions about their financial futures.
