OceanFirst Financial (NASDAQ:OCFC) and New York Community Bancorp (NYSE:NYCB) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.
Dividends
OceanFirst Financial pays an annual dividend of $0.68 per share and has a dividend yield of 3.0%. New York Community Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 5.6%. OceanFirst Financial pays out 32.9% of its earnings in the form of a dividend. 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. OceanFirst Financial has raised its dividend for 1 consecutive years and New York Community Bancorp has raised its dividend for 1 consecutive years.
Earnings & Valuation
This table compares OceanFirst Financial and New York Community Bancorp's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| OceanFirst Financial | $350.96 million | 3.93 | $88.57 million | $2.07 | 11.05 |
| New York Community Bancorp | $1.89 billion | 3.01 | $395.04 million | $0.77 | 15.90 |
New York Community Bancorp has higher revenue and earnings than OceanFirst Financial. OceanFirst Financial 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.
Analyst Ratings
This is a summary of current ratings and target prices for OceanFirst Financial and New York Community Bancorp, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| OceanFirst Financial | 0 | 1 | 4 | 1 | 3.00 |
| New York Community Bancorp | 0 | 6 | 6 | 0 | 2.50 |
OceanFirst Financial currently has a consensus price target of $21.60, indicating a potential downside of 5.55%. New York Community Bancorp has a consensus price target of $11.9167, indicating a potential downside of 2.72%. Given New York Community Bancorp's higher probable upside, analysts clearly believe New York Community Bancorp is more favorable than OceanFirst Financial.
Institutional & Insider Ownership
65.3% of OceanFirst Financial shares are held by institutional investors. Comparatively, 50.8% of New York Community Bancorp shares are held by institutional investors. 3.8% of OceanFirst Financial shares are held by company insiders. Comparatively, 3.3% of New York Community Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares OceanFirst Financial and New York Community Bancorp's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| OceanFirst Financial | 13.14% | 5.38% | 0.71% |
| New York Community Bancorp | 23.07% | 6.69% | 0.76% |
Volatility & Risk
OceanFirst Financial has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, New York Community Bancorp has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.
Summary
New York Community Bancorp beats OceanFirst Financial on 9 of the 17 factors compared between the two stocks.
