Provident Bancorp (NASDAQ:PVBC) and First Northern Community Bancorp (OTCMKTS:FNRN) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Volatility and Risk

Provident Bancorp has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, First Northern Community Bancorp has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Institutional and Insider Ownership

38.9% of Provident Bancorp shares are held by institutional investors. Comparatively, 7.4% of First Northern Community Bancorp shares are held by institutional investors. 6.2% of Provident Bancorp shares are held by insiders. Comparatively, 9.5% of First Northern Community Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Provident Bancorp and First Northern Community Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Provident Bancorp 17.06% 7.45% 0.95%
First Northern Community Bancorp 24.25% 12.63% 1.05%

Analyst Recommendations

This is a summary of recent ratings and price targets for Provident Bancorp and First Northern Community Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Provident Bancorp 0 1 0 0 2.00
First Northern Community Bancorp 0 0 0 0 N/A

Provident Bancorp presently has a consensus price target of $12.00, suggesting a potential upside of 54.44%. Given Provident Bancorp’s higher possible upside, equities research analysts clearly believe Provident Bancorp is more favorable than First Northern Community Bancorp.

Earnings and Valuation

This table compares Provident Bancorp and First Northern Community Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Provident Bancorp $55.65 million 2.72 $10.81 million N/A N/A
First Northern Community Bancorp $56.19 million 1.85 $14.72 million N/A N/A

First Northern Community Bancorp has higher revenue and earnings than Provident Bancorp.

Summary

First Northern Community Bancorp beats Provident Bancorp on 6 of the 11 factors compared between the two stocks.

About Provident Bancorp

Provident Bancorp, Inc. is a Maryland corporation that was formed in 2019 to be the successor corporation to Provident Bancorp, Inc., a Massachusetts corporation, and the holding company for The Provident Bank. The Provident Bank, a subsidiary of Provident Bancorp, Inc. is an innovative, commercial bank that finds solutions for its business and private clients.

About First Northern Community Bancorp

First Northern Community Bancorp operates as the bank holding company for First Northern Bank of Dixon that provides commercial banking products and services to individuals and small to medium sized businesses. The company accepts demand, interest-bearing transaction, savings and money market, and time deposits. Its loan products commercial, commercial real estate, agriculture, residential mortgage, residential construction, and consumer loans. The company also offers credit cards; investment and brokerage services; alternative investment products, and fiduciary and other financial services; and equipment leasing, merchant card processing, payroll, and international banking services through third parties. In addition, it provides issues cashier's checks; sells travelers' checks; rents safe deposit boxes; and provides other customary banking services. The company operates 10 full service branches located in the cities of Auburn, Davis, Dixon, Fairfield, Roseville, Sacramento, Vacaville, West Sacramento, Winters, and Woodland; a satellite banking office inside a retirement community in the city of Davis; residential mortgage loan offices in Davis and Sonoma; and a commercial loan office in the Contra Costa County city of Walnut Creek. First Northern Community Bancorp was founded in 1910 and is headquartered in Dixon, California.

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