New York Community Bancorp (NYSE:NYCB) and Northwest Bancshares (NASDAQ:NWBI) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.
Insider & Institutional Ownership
50.8% of New York Community Bancorp shares are owned by institutional investors. Comparatively, 61.8% of Northwest Bancshares shares are owned by institutional investors. 3.3% of New York Community Bancorp shares are owned by insiders. Comparatively, 1.2% of Northwest Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares New York Community Bancorp and Northwest Bancshares' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| New York Community Bancorp | $1.89 billion | 2.89 | $395.04 million | $0.77 | 15.27 |
| Northwest Bancshares | $516.79 million | 3.50 | $110.43 million | $1.05 | 13.54 |
New York Community Bancorp has higher revenue and earnings than Northwest Bancshares. Northwest Bancshares is trading at a lower price-to-earnings ratio than New York Community Bancorp, indicating that it is currently the more affordable of the two stocks.
Dividends
New York Community Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 5.8%. Northwest Bancshares pays an annual dividend of $0.80 per share and has a dividend yield of 5.6%. New York Community Bancorp pays out 88.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Northwest Bancshares pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. New York Community Bancorp has increased its dividend for 1 consecutive years and Northwest Bancshares has increased its dividend for 1 consecutive years.
Volatility and Risk
New York Community Bancorp has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Northwest Bancshares has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings for New York Community Bancorp and Northwest Bancshares, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| New York Community Bancorp | 0 | 7 | 5 | 0 | 2.42 |
| Northwest Bancshares | 0 | 3 | 1 | 0 | 2.25 |
New York Community Bancorp presently has a consensus target price of $12.8182, indicating a potential upside of 9.00%. Northwest Bancshares has a consensus target price of $12.3333, indicating a potential downside of 13.27%. Given New York Community Bancorp's stronger consensus rating and higher possible upside, analysts plainly believe New York Community Bancorp is more favorable than Northwest Bancshares.
Profitability
This table compares New York Community Bancorp and Northwest Bancshares' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| New York Community Bancorp | 23.07% | 6.69% | 0.76% |
| Northwest Bancshares | 11.80% | 7.20% | 0.85% |
Summary
New York Community Bancorp beats Northwest Bancshares on 9 of the 16 factors compared between the two stocks.
