Contrasting Ponce Financial Group (NASDAQ:PDLB) & Finward Bancorp (NASDAQ:FNWD)

Finward Bancorp (NASDAQ:FNWD) and Ponce Financial Group (NASDAQ:PDLB) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Profitability

This table compares Finward Bancorp and Ponce Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Finward Bancorp	12.00%	9.26%	0.63%
Ponce Financial Group	5.52%	3.26%	0.32%

Valuation and Earnings

This table compares Finward Bancorp and Ponce Financial Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Finward Bancorp	$70.86 million	1.73	$8.38 million	$3.60	7.92
Ponce Financial Group	$79.11 million	3.38	$3.35 million	$0.25	44.96

Finward Bancorp has higher earnings, but lower revenue than Ponce Financial Group. Finward Bancorp is trading at a lower price-to-earnings ratio than Ponce Financial Group, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

26.6% of Finward Bancorp shares are owned by institutional investors. Comparatively, 64.3% of Ponce Financial Group shares are owned by institutional investors. 13.7% of Finward Bancorp shares are owned by insiders. Comparatively, 6.7% of Ponce Financial Group shares are owned 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.

Volatility & Risk

Finward Bancorp has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Ponce Financial Group has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Finward Bancorp and Ponce Financial Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Finward Bancorp	0	0	1	0	3.00
Ponce Financial Group	0	0	0	0	N/A

Finward Bancorp presently has a consensus price target of $31.00, suggesting a potential upside of 8.68%. Given Finward Bancorp’s higher probable upside, analysts clearly believe Finward Bancorp is more favorable than Ponce Financial Group.

Summary

Finward Bancorp beats Ponce Financial Group on 8 of the 13 factors compared between the two stocks.

About Finward Bancorp

Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services. The company's deposit products include non-interest- and interest-bearing demand accounts, savings accounts, money market deposit accounts, certificate accounts, and retirement savings plans. Its loan products portfolio comprises residential mortgage loans that enable borrowers to purchase existing homes, refinance existing homes, or construct new homes; construction loans primarily to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household, or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities. The company also offers estate and retirement planning, guardianships, land trusts, profit sharing and 401(k) retirement plans, IRA and Keogh accounts, and investment agency accounts, as well as serves as the personal representative of estates, and acts as trustee for revocable and irrevocable trusts. In addition, it provides insurance and annuity investments to wealth management customers; holds real estate properties; and operates as a real estate investment trust. The company was formerly known as NorthWest Indiana Bancorp and changed its name to Finward Bancorp in May 2021. Finward Bancorp was founded in 1916 and is headquartered in Munster, Indiana.

About Ponce Financial Group

Ponce Financial Group, Inc. operates as the bank holding company for Ponce Bank that provides various banking products and services. It offers various deposit products, including demand accounts, NOW/IOLA, money market, reciprocal deposits, savings accounts, and certificates of deposit to individuals, business entities, and non-profit organizations, as well as individual retirement accounts. The company also provides real estate-secured loans, which includes one-to-four family investor-owned and owner-occupied residential; multifamily residential; nonresidential property; construction and land; commercial and industrial; and business and consumer loans, as well as lines of credit. In addition, it invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or owned enterprises, as well as corporate securities, mortgage-backed securities, and Federal Home Loan Bank stock. Ponce Financial Group, Inc. was founded in 1960 and is headquartered in Bronx, New York.