Head to Head Analysis: Broadway Financial (NASDAQ:BYFC) & Northrim BanCorp (NASDAQ:NRIM)

Broadway Financial (NASDAQ:BYFC) and Northrim BanCorp (NASDAQ:NRIM) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Valuation & Earnings

This table compares Broadway Financial and Northrim BanCorp’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadway Financial	$52.58 million	0.86	$4.51 million	$0.30	16.53
Northrim BanCorp	$138.49 million	2.72	$25.39 million	$5.13	13.33

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

Insider and Institutional Ownership

12.1% of Broadway Financial shares are held by institutional investors. Comparatively, 66.0% of Northrim BanCorp shares are held by institutional investors. 4.7% of Broadway Financial shares are held by insiders. Comparatively, 4.1% of Northrim 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.

Profitability

This table compares Broadway Financial and Northrim BanCorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Broadway Financial	4.92%	2.15%	0.21%
Northrim BanCorp	18.41%	13.82%	1.16%

Volatility and Risk

Broadway Financial has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, Northrim BanCorp has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Broadway Financial and Northrim BanCorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadway Financial	0	0	0	0	N/A
Northrim BanCorp	0	0	0	0	N/A

Summary

Northrim BanCorp beats Broadway Financial on 9 of the 11 factors compared between the two stocks.

About Broadway Financial

Broadway Financial Corporation operates as the holding company for City First Bank, National Association that provides various banking products and services in the United States. It accepts various deposit accounts, including savings accounts, checking accounts, interest checking accounts, money market accounts, and fixed-term certificates of deposit. The company also offers mortgage loans, which are secured by multi-family residential properties; single family residential properties; and commercial real estate, including charter schools, community facilities, and churches, as well as commercial business, construction, and consumer loans. In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments. The company was founded in 1946 and is headquartered in Los Angeles, California.

About Northrim BanCorp

Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals. It operates through two segments, Community Banking and Home Mortgage Lending. The company offers noninterest-bearing checking accounts and interest-bearing time deposits, checking and savings accounts, individual retirement and money market deposit accounts, certificates of deposit, and business sweep accounts. It also provides short and medium-term commercial loans, commercial credit lines, construction and real estate loans, and consumer loans, as well as short-term working capital. In addition, the company offers other services comprising consumer and business online banking, mobile app, and mobile deposits; and debit and credit cards. Further, it provides mobile web and app banking, consumer online account opening, personal finance, online documents, consumer debit cards, business debit cards, my rewards for consumer debit cards, retail lockbox, card control, corporate purchase cards, integrated payables, home equity advantage access cards, telebanking, and automated teller services. Additionally, the company offers personalized checks at account opening, overdraft protection from a savings account, commercial drive-up banking, automatic transfer and payment, People Pay, external transfer, Bill Pay, wire transfer, direct payroll deposit, electronic tax payment, Automated Clearing House origination and receipt, remote deposit capture, account reconciliation and positive pay, merchant, cash management, annuity, and long-term investment portfolio products and services. It also provides investment advisory, trust, wealth management, factoring, and mortgage services. The company was founded in 1990 and is headquartered in Anchorage, Alaska.