Head-To-Head Review: NSTS Bancorp (NASDAQ:NSTS) & Oconee Federal Financial (NASDAQ:OFED)

NSTS Bancorp (NASDAQ:NSTS) and Oconee Federal Financial (NASDAQ:OFED) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Profitability

This table compares NSTS Bancorp and Oconee Federal Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NSTS Bancorp	-59.99%	-5.61%	-1.70%
Oconee Federal Financial	N/A	2.03%	0.25%

Volatility and Risk

NSTS Bancorp has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500. Comparatively, Oconee Federal Financial has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.

Earnings and Valuation

This table compares NSTS Bancorp and Oconee Federal Financial’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NSTS Bancorp	$5.18 million	10.49	-$3.96 million	($0.88)	-11.62
Oconee Federal Financial	$16.85 million	4.63	$3.30 million	$0.76	17.59

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

Insider & Institutional Ownership

23.7% of NSTS Bancorp shares are held by institutional investors. 4.6% of NSTS Bancorp shares are held by company insiders. Comparatively, 5.1% of Oconee Federal Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for NSTS Bancorp and Oconee Federal Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NSTS Bancorp	0	0	0	0	N/A
Oconee Federal Financial	0	0	0	0	N/A

Summary

Oconee Federal Financial beats NSTS Bancorp on 9 of the 11 factors compared between the two stocks.

About NSTS Bancorp

NSTS Bancorp, Inc. operates as a savings and loan holding company for North Shore Trust and Savings that provides banking products and services in Illinois. The company offers interest-bearing and noninterest-bearing checking, money market, savings, and time deposit accounts; and one- to four-family residential mortgage, multi-family and commercial real estate mortgage, construction, home equity, and consumer loans. It operates through full-service banking offices in Lake County, Illinois; and one loan production office in Chicago. The company was founded in 1921 and is headquartered in Waukegan, Illinois.

About Oconee Federal Financial

Oconee Federal Financial Corp. operates as a holding company for Oconee Federal Savings and Loan Association that provides various banking products and services in the Oconee and Pickens County areas of northwestern South Carolina, and the northeast area of Georgia in Stephens County and Rabun County. It offers deposit products, including demand, money market, NOW, savings, and individual retirement accounts, as well as certificates of deposit. The company's loan portfolio comprises one-to-four family residential and multi-family real estate loans; home equity loans and lines of credit; nonresidential real estate loans; mortgage loans; construction and land loans; commercial and industrial loans; agricultural loans; and consumer and other loans, such as installment loans for various consumer purposes, including the purchase of automobiles, boats, and other legitimate personal purposes. Oconee Federal Financial Corp. was founded in 1924 and is based in Seneca, South Carolina. Oconee Federal Financial Corp. operates a subsidiary of Oconee Federal, MHC.