NB Bancorp (NBBK) and Its Rivals Critical Review

NB Bancorp (NASDAQ:NBBK) is one of 43 publicly-traded companies in the “Savings institutions, except federal” industry, but how does it contrast to its peers? We will compare NB Bancorp to related businesses based on the strength of its dividends, risk, profitability, analyst recommendations, earnings, institutional ownership and valuation.

Profitability

This table compares NB Bancorp and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NB Bancorp	13.86%	6.04%	0.93%
NB Bancorp Competitors	8.09%	4.81%	0.56%

Earnings and Valuation

This table compares NB Bancorp and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NB Bancorp	$304.05 million	$42.15 million	18.07
NB Bancorp Competitors	$496.41 million	-$13.20 million	4.31

NB Bancorp’s peers have higher revenue, but lower earnings than NB Bancorp. NB Bancorp is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

NB Bancorp has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, NB Bancorp’s peers have a beta of 0.57, suggesting that their average stock price is 43% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for NB Bancorp and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NB Bancorp	0	0	1	0	3.00
NB Bancorp Competitors	134	621	380	7	2.23

NB Bancorp currently has a consensus target price of $22.00, indicating a potential upside of 13.81%. As a group, “Savings institutions, except federal” companies have a potential upside of 5.58%. Given NB Bancorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe NB Bancorp is more favorable than its peers.

Institutional and Insider Ownership

44.7% of shares of all “Savings institutions, except federal” companies are owned by institutional investors. 1.7% of NB Bancorp shares are owned by insiders. Comparatively, 8.4% of shares of all “Savings institutions, except federal” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

NB Bancorp beats its peers on 8 of the 13 factors compared.

About NB Bancorp

NB Bancorp, Inc. focuses on operating as a bank holding company for Needham Bank that provides various banking products and services in Greater Boston metropolitan area and surrounding communities in Massachusetts, eastern Connecticut, southern New Hampshire, and Rhode Island. The company offers various deposits, including certificate of deposit, individual retirement, money market, savings, NOW, demand deposit, and interest-bearing and noninterest-bearing checking accounts; and commercial real estate and multifamily, one- to four-family residential real estate, construction and land development, commercial and industrial, and consumer loans, as well as home equity loans and lines of credit. It also invests in securities consisting of U.S. treasury and federal agency securities, government-sponsored residential mortgage-backed securities, municipal bonds, and corporate bonds. The company was founded in 1892 and is based in Needham, Massachusetts.