Financial Comparison: OFG Bancorp (NYSE:OFG) versus JSB Financial (OTCMKTS:JFWV)

JSB Financial (OTCMKTS:JFWV) and OFG Bancorp (NYSE:OFG) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Valuation & Earnings

This table compares JSB Financial and OFG Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JSB Financial	N/A	N/A	$4.10 million	$13.66	7.54
OFG Bancorp	$873.53 million	2.07	$198.17 million	$4.40	9.34

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

Risk and Volatility

JSB Financial has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500. Comparatively, OFG Bancorp has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Profitability

This table compares JSB Financial and OFG Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JSB Financial	N/A	N/A	N/A
OFG Bancorp	22.26%	15.18%	1.67%

Dividends

JSB Financial pays an annual dividend of $2.70 per share and has a dividend yield of 2.6%. OFG Bancorp pays an annual dividend of $1.20 per share and has a dividend yield of 2.9%. JSB Financial pays out 19.8% of its earnings in the form of a dividend. OFG Bancorp pays out 27.3% 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. OFG Bancorp has raised its dividend for 5 consecutive years. OFG Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

0.1% of JSB Financial shares are owned by institutional investors. Comparatively, 92.7% of OFG Bancorp shares are owned by institutional investors. 2.2% of OFG Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for JSB Financial and OFG Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JSB Financial	0	0	0	0	0.00
OFG Bancorp	1	1	5	0	2.57

OFG Bancorp has a consensus price target of $47.17, indicating a potential upside of 14.77%. Given OFG Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe OFG Bancorp is more favorable than JSB Financial.

Summary

OFG Bancorp beats JSB Financial on 14 of the 16 factors compared between the two stocks.

About JSB Financial

JSB Financial Inc. operates as the bank holding company for Jefferson Security Bank that provides various banking products and services to individuals, agricultural businesses, small and medium-sized businesses, local government entities, and non-profit organizations. It accepts various deposit products, such as checking, savings, money market, individual retirement, overdraft protection, and sweep accounts, as well as certificates of deposit. The company's loan portfolio includes personal and vehicle, mortgage, construction, commercial, and home equity loans. It also offers ATM, online and mobile banking, bill pay, paperless statements, cash management, remote deposit capture, merchant, and credit and debit card services. The company was founded in 1869 and is headquartered in Shepherdstown, West Virginia.

About OFG Bancorp

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, and individual retirement accounts; certificate of deposits, as well as time deposit products; commercial, consumer, auto leasing, and mortgage lending services; credit cards; cash management; financial planning and insurance services; and corporate and individual trust, and retirement services. In addition, it provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. Further, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; and various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments. Additionally, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company provides investment brokerage, transactional, international trade financing, residential mortgage, and consumer finance services. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.