Analyzing Hanover Bancorp (NASDAQ:HNVR) and Fifth District Bancorp (NASDAQ:FDSB)

Fifth District Bancorp (NASDAQ:FDSB) and Hanover Bancorp (NASDAQ:HNVR) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Volatility and Risk

Fifth District Bancorp has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, Hanover Bancorp has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Fifth District Bancorp and Hanover Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fifth District Bancorp	0	1	0	0	2.00
Hanover Bancorp	0	2	2	0	2.50

Hanover Bancorp has a consensus price target of $28.50, indicating a potential upside of 29.60%. Given Hanover Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Hanover Bancorp is more favorable than Fifth District Bancorp.

Profitability

This table compares Fifth District Bancorp and Hanover Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fifth District Bancorp	6.97%	1.27%	0.31%
Hanover Bancorp	7.33%	6.44%	0.54%

Insider & Institutional Ownership

15.0% of Hanover Bancorp shares are held by institutional investors. 8.6% of Fifth District Bancorp shares are held by insiders. Comparatively, 24.4% of Hanover Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Fifth District Bancorp and Hanover Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fifth District Bancorp	$14.95 million	6.20	$4.09 million	$0.34	52.04
Hanover Bancorp	$143.32 million	1.08	$7.49 million	$1.40	15.71

Hanover Bancorp has higher revenue and earnings than Fifth District Bancorp. Hanover Bancorp is trading at a lower price-to-earnings ratio than Fifth District Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Hanover Bancorp beats Fifth District Bancorp on 11 of the 14 factors compared between the two stocks.

About Fifth District Bancorp

Fifth District Bancorp, Inc. is the holding company for Fifth District Savings Bank which provide all banking services. Fifth District Bancorp, Inc. is based in NEW ORLEANS.

About Hanover Bancorp

Hanover Bancorp, Inc., a bank holding company for Hanover Community Bank, provides personal and business lending and deposit services to businesses, municipalities, and individuals in the New York metro area. The company offers checking, credit cards, debit cards, money market, savings, government and municipal banking, and professional services, as well as time deposits, including certificate of deposit and individual retirement accounts. It also provides business loans, commercial real estate financing, small business administration, lending directory services, and residential mortgage. In addition, the company offers cash management, online and mobile banking, merchant services, and digital solutions. Its banking offices are located in Nassau, Suffolk, Queens, Kings, New York Counties, New York, Monmouth County, Freehold, and New Jersey. The company was founded in 2008 and is headquartered in Mineola, New York.