Gouverneur Bancorp (OTCMKTS:GOVB) & Broadway Financial (NASDAQ:BYFC) Critical Comparison

Gouverneur Bancorp (OTCMKTS:GOVB) and Broadway Financial (NASDAQ:BYFC) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gouverneur Bancorp	5.30%	N/A	N/A
Broadway Financial	4.66%	2.15%	0.21%

Analyst Ratings

This is a breakdown of current recommendations for Gouverneur Bancorp and Broadway Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gouverneur Bancorp	0	0	0	0	N/A
Broadway Financial	0	0	0	0	N/A

Institutional and Insider Ownership

21.6% of Gouverneur Bancorp shares are owned by institutional investors. Comparatively, 12.1% of Broadway Financial shares are owned by institutional investors. 4.1% of Gouverneur Bancorp shares are owned by insiders. Comparatively, 4.7% of Broadway Financial shares are owned 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.

Volatility and Risk

Gouverneur Bancorp has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Broadway Financial has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Earnings & Valuation

This table compares Gouverneur Bancorp and Broadway Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gouverneur Bancorp	$8.23 million	1.41	$1.53 million	N/A	N/A
Broadway Financial	$34.75 million	1.62	$4.51 million	$0.30	20.50

Broadway Financial has higher revenue and earnings than Gouverneur Bancorp.

Summary

Broadway Financial beats Gouverneur Bancorp on 7 of the 10 factors compared between the two stocks.

About Gouverneur Bancorp

Gouverneur Bancorp, Inc. operates as the holding company for Gouverneur Savings and Loan Association that provides various banking products and services to individuals and businesses in New York. It accepts passbook savings, NOW, money market deposit, and checking accounts, as well as certificates of deposit. The company's loan products include mortgage loans, one- to four-family residential loans, commercial real estate loans, and multi-family residential real estate loans, residential and commercial construction loans, commercial land loans, home equity loans, lines of credit, commercial loans, automobiles, motorcycles, campers, boats, and other recreational vehicles, as well as personal secured and unsecured loans. It also invests in municipal bonds, U.S. Treasury securities, U.S. Government agencies and government-sponsored obligations, and mortgage-backed securities. In addition, the company offers online, mobile, bill pay, and telephone banking; electronic or paper statements; and ATM, debit cards, direct deposits, mobile remote deposit capture, automatic payments and transfers, bank checks, wire transfers, and safe deposit box services. It serves primarily the St. Lawrence County, and Jefferson and Lewis counties in New York State. The company was founded in 1892 and is headquartered in Gouverneur, New York.

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.