Contrasting Amalgamated Financial (NASDAQ:AMAL) and OFG Bancorp (NYSE:OFG)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amalgamated Financial	23.22%	16.34%	1.17%
OFG Bancorp	23.00%	16.10%	1.73%

Volatility & Risk

Amalgamated Financial has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, OFG Bancorp has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500.

Insider and Institutional Ownership

75.9% of Amalgamated Financial shares are held by institutional investors. Comparatively, 92.7% of OFG Bancorp shares are held by institutional investors. 0.9% of Amalgamated Financial shares are held by insiders. Comparatively, 2.2% of OFG Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Amalgamated Financial and OFG Bancorp’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amalgamated Financial	$387.41 million	1.97	$87.98 million	$3.06	8.16
OFG Bancorp	$770.73 million	2.22	$181.87 million	$3.91	9.32

OFG Bancorp has higher revenue and earnings than Amalgamated Financial. Amalgamated 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.

Analyst Ratings

This is a summary of current ratings and recommmendations for Amalgamated Financial and OFG Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amalgamated Financial	0	0	3	0	3.00
OFG Bancorp	0	0	1	0	3.00

Amalgamated Financial currently has a consensus price target of $29.50, indicating a potential upside of 18.14%. OFG Bancorp has a consensus price target of $40.00, indicating a potential upside of 9.74%. Given Amalgamated Financial’s higher possible upside, equities analysts clearly believe Amalgamated Financial is more favorable than OFG Bancorp.

Dividends

Amalgamated Financial pays an annual dividend of $0.48 per share and has a dividend yield of 1.9%. OFG Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.7%. Amalgamated Financial pays out 15.7% of its earnings in the form of a dividend. OFG Bancorp pays out 25.6% 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.

Summary

OFG Bancorp beats Amalgamated Financial on 10 of the 15 factors compared between the two stocks.

About Amalgamated Financial

Amalgamated Financial Corp. operates as the bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services for commercial and retail customers in the United States. The company accepts various deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts, NOW accounts, and certificates of deposit. It also provides various commercial loans comprising commercial and industrial, multifamily mortgage, and commercial real estate loans; residential mortgage loans; and retail loans, such as residential real estate, consumer solar, and consumer and other loans. In addition, the company offers online banking, bill payment, online cash management, and safe deposit box rental services; debit and ATM cards; and trust, custody, and investment management services comprising asset safekeeping, corporate actions, income collections, proxy, account transition, asset transfers, and conversion management services. Further, it provides investment products, such as funds spanning equity, fixed-income, real estate, and alternative investment products; and brokerage, asset management, and insurance products. Amalgamated Financial Corp. was founded in 1923 and is headquartered in New York, New York.

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.