BBX Capital (OTCMKTS:BBXTB) and Northfield Bancorp (NASDAQ:NFBK) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Analyst Ratings

This is a summary of recent ratings for BBX Capital and Northfield Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BBX Capital 0 0 0 0 N/A
Northfield Bancorp 0 0 0 0 N/A

Profitability

This table compares BBX Capital and Northfield Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BBX Capital 0.76% 1.83% 0.67%
Northfield Bancorp 21.75% 4.88% 0.73%

Risk and Volatility

BBX Capital has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Northfield Bancorp has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Dividends

BBX Capital pays an annual dividend of $0.05 per share and has a dividend yield of 1.3%. Northfield Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 2.8%. Northfield Bancorp pays out 57.9% of its earnings in the form of a dividend. Northfield Bancorp has increased its dividend for 6 consecutive years. Northfield Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

58.0% of Northfield Bancorp shares are held by institutional investors. 88.2% of BBX Capital shares are held by insiders. Comparatively, 8.6% of Northfield Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares BBX Capital and Northfield Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BBX Capital $961.79 million 0.38 $35.10 million N/A N/A
Northfield Bancorp $155.42 million 4.96 $40.08 million $0.76 20.58

Northfield Bancorp has lower revenue, but higher earnings than BBX Capital.

Summary

Northfield Bancorp beats BBX Capital on 9 of the 13 factors compared between the two stocks.

BBX Capital Company Profile

BBX Capital Corporation, formerly known as BFC Financial Corporation, is a private equity and venture capital firm specializing in investments and acquisitions of middle market companies. The firm also invests in mergers and acquisition, add-on acquisitions, divestiture, taking public companies private and private companies public, leveraged buyout, partnership, recapitalization, and restructuring. It typically does not invest in industries or companies whose ultimate returns are event driven. The firm seeks to invest across a broad range of industries ranging from service to manufacturing businesses. The firm prefers to acquire controlling interests in its portfolio companies and can also consider minority investments. BFC Financial Corporation was founded in 1980 and is based in Fort Lauderdale, Florida.

Northfield Bancorp Company Profile

Northfield Bancorp, Inc. (Staten Island, NY) operates as the bank holding company for Northfield Bank that provides various banking products and services primarily to individuals and corporate customers. It accepts various deposits products, including transaction accounts comprising negotiable orders of withdrawal accounts and non-interest bearing checking accounts; savings accounts, such as money market, passbook, and statement savings; certificates of deposit consisting of individual retirement accounts; and brokered deposits. The company also offers various loans comprising multifamily and other commercial real estate loans, construction and land loans, commercial and industrial loans, one-to-four family residential real estate loans, and home equity loans and lines of credit. In addition, it purchases various investment securities, such as mortgage-backed securities and corporate bonds; and deposits funds in other financial institutions, as well as holds primarily mortgage loans and other investments. As of January 30, 2019, the company operated through a network of 40 full-service banking offices located in Staten Island and Brooklyn, New York; and Hunterdon, Mercer, Middlesex, and Union counties, New Jersey. Northfield Bancorp, Inc. (Staten Island, NY) was founded in 1887 and is headquartered in Woodbridge, New Jersey.

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