Head to Head Analysis: Northeast Bank (NASDAQ:NBN) versus Truxton (OTCMKTS:TRUX)

Truxton (OTCMKTS:TRUX) and Northeast Bank (NASDAQ:NBN) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Earnings & Valuation

This table compares Truxton and Northeast Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Truxton	$78.37 million	2.69	$18.41 million	$6.34	11.52
Northeast Bank	$170.62 million	4.42	$58.23 million	$8.59	10.70

Northeast Bank has higher revenue and earnings than Truxton. Northeast Bank is trading at a lower price-to-earnings ratio than Truxton, indicating that it is currently the more affordable of the two stocks.

Dividends

Truxton pays an annual dividend of $2.00 per share and has a dividend yield of 2.7%. Northeast Bank pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Truxton pays out 31.5% of its earnings in the form of a dividend. Northeast Bank pays out 0.5% 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.

Insider and Institutional Ownership

0.4% of Truxton shares are held by institutional investors. 14.2% of Northeast Bank shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

Truxton has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Northeast Bank has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Profitability

This table compares Truxton and Northeast Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Truxton	23.49%	N/A	N/A
Northeast Bank	22.87%	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Truxton and Northeast Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Truxton	0	0	0	0	0.00
Northeast Bank	0	1	1	0	2.50

Northeast Bank has a consensus target price of $97.50, suggesting a potential upside of 6.04%. Given Northeast Bank’s stronger consensus rating and higher probable upside, analysts clearly believe Northeast Bank is more favorable than Truxton.

Summary

Northeast Bank beats Truxton on 10 of the 14 factors compared between the two stocks.

About Truxton

Truxton Corporation, through its subsidiaries, provides various banking, investment management, and trust administration services to individuals, businesses, and charitable institutions in the United States. The company offers deposit products, including demand, money market accounts, and certificates of deposit. It also provides lending products, such as residential and commercial real estate mortgages, commercial loans, construction and land development loans, commercial and industrial loans, operating lines of credit, and loans to individual. In addition, the company offers strategic and capital advisory services, business banking, and treasury management services; and insurance products. The company was formerly known as NBT Holdings Inc. and changed its name to Truxton Corporation in May 2013. Truxton Corporation was founded in 2004 and is based in Nashville, Tennessee.

About Northeast Bank

Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. Further, it provides various services, such as money market, merchant, and payroll and HR. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.