Oconee Federal Financial (NASDAQ:OFED – Get Free Report) and Finward Bancorp (OTCMKTS:FNWD – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.
Profitability
This table compares Oconee Federal Financial and Finward Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Oconee Federal Financial | 20.66% | 5.68% | 0.73% |
| Finward Bancorp | 17.40% | 11.64% | 0.74% |
Analyst Ratings
This is a summary of recent recommendations for Oconee Federal Financial and Finward Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Oconee Federal Financial | 0 | 0 | 0 | 0 | N/A |
| Finward Bancorp | 0 | 1 | 1 | 0 | 2.50 |
Dividends
Oconee Federal Financial pays an annual dividend of $0.40 per share and has a dividend yield of 2.7%. Finward Bancorp pays an annual dividend of $1.24 per share and has a dividend yield of 4.9%. Oconee Federal Financial pays out 54.8% of its earnings in the form of a dividend. Finward Bancorp pays out 35.0% 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. Finward Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares Oconee Federal Financial and Finward Bancorp’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Oconee Federal Financial | $16.85 million | 4.93 | $4.10 million | $0.73 | 20.29 |
| Finward Bancorp | $77.26 million | 1.42 | $15.08 million | $3.54 | 7.20 |
Finward Bancorp has higher revenue and earnings than Oconee Federal Financial. Finward Bancorp is trading at a lower price-to-earnings ratio than Oconee Federal Financial, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Oconee Federal Financial has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, Finward Bancorp has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.
Institutional & Insider Ownership
0.8% of Oconee Federal Financial shares are held by institutional investors. Comparatively, 31.6% of Finward Bancorp shares are held by institutional investors. 5.1% of Oconee Federal Financial shares are held by insiders. Comparatively, 13.7% of Finward Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Finward Bancorp beats Oconee Federal Financial on 12 of the 15 factors compared between the two stocks.
About Oconee Federal Financial
Oconee Federal Financial Corp. operates as a holding company for Oconee Federal Savings and Loan Association that provides various banking products and services in the Oconee County area of northwestern South Carolina and the northeast area of Georgia. It offers deposit products, including demand, NOW, money market, savings, certificates of deposit, and individual retirement accounts. The company's loan portfolio comprises one-to-four family and multi-family residential mortgage loans; home equity loans and lines of credit; nonresidential real estate loans; construction and land loans; commercial and industrial loans; agricultural loans; and consumer and other loans, such as installment loans for various consumer purposes, including the purchase of automobiles, boats, and other legitimate personal purposes. It operates through its executive office and branch offices located in Oconee and Pickens counties, South Carolina; and Stephens and Rabun counties, Georgia. The company was founded in 1924 and is based in Seneca, South Carolina. Oconee Federal Financial Corp. is a subsidiary of Oconee Federal, MHC.
About Finward Bancorp
Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services. The company's deposit products include non-interest- and interest-bearing demand accounts, savings accounts, money market deposit accounts, certificate accounts, and retirement savings plans. Its loan products portfolio comprises residential mortgage loans that enable borrowers to purchase existing homes, refinance existing homes, or construct new homes; construction loans primarily to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household, or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities. The company also offers estate and retirement planning, guardianships, land trusts, profit sharing and 401(k) retirement plans, IRA and Keogh accounts, and investment agency accounts, as well as serves as the personal representative of estates, and acts as trustee for revocable and irrevocable trusts. In addition, it provides insurance and annuity investments to wealth management customers; holds real estate properties; and operates as a real estate investment trust. The company was formerly known as NorthWest Indiana Bancorp and changed its name to Finward Bancorp in May 2021. Finward Bancorp was founded in 1916 and is headquartered in Munster, Indiana.
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