North Dallas Bank & Trust (OTCBB:NODB) and Dime Community Bancshares (NASDAQ:DCOM) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.
Dividends
North Dallas Bank & Trust pays an annual dividend of $1.00 per share. Dime Community Bancshares pays an annual dividend of $0.96 per share and has a dividend yield of 3.2%. Dime Community Bancshares pays out 88.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Dime Community Bancshares has increased its dividend for 1 consecutive years. Dime Community Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
0.7% of North Dallas Bank & Trust shares are held by institutional investors. Comparatively, 71.8% of Dime Community Bancshares shares are held by institutional investors. 8.9% of Dime Community Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations for North Dallas Bank & Trust and Dime Community Bancshares, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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North Dallas Bank & Trust | 0 | 0 | 0 | 0 | N/A |
Dime Community Bancshares | 0 | 0 | 3 | 0 | 3.00 |
Dime Community Bancshares has a consensus price target of $17.1667, indicating a potential downside of 43.31%.
Risk and Volatility
North Dallas Bank & Trust has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, Dime Community Bancshares has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.
Profitability
This table compares North Dallas Bank & Trust and Dime Community Bancshares' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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North Dallas Bank & Trust | N/A | N/A | N/A |
Dime Community Bancshares | 17.14% | 8.40% | 0.75% |
Valuation & Earnings
This table compares North Dallas Bank & Trust and Dime Community Bancshares' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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North Dallas Bank & Trust | N/A | N/A | $9.18 million | N/A | N/A |
Dime Community Bancshares | $250.44 million | 2.39 | $36.19 million | $1.08 | 28.04 |
Dime Community Bancshares has higher revenue and earnings than North Dallas Bank & Trust.
Summary
Dime Community Bancshares beats North Dallas Bank & Trust on 11 of the 13 factors compared between the two stocks.