Bancorp 34 (OTCMKTS:BCTF) and Northeast Indiana Bancorp (OTCMKTS:NIDB) Financial Contrast

Bancorp 34 (OTCMKTS:BCTF) and Northeast Indiana Bancorp (OTCMKTS:NIDB) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Bancorp 34 and Northeast Indiana Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bancorp 34	-4.02%	-2.38%	-0.22%
Northeast Indiana Bancorp	14.16%	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Bancorp 34 and Northeast Indiana Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bancorp 34	0	0	0	0	N/A
Northeast Indiana Bancorp	0	0	0	0	N/A

Volatility and Risk

Bancorp 34 has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500. Comparatively, Northeast Indiana Bancorp has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Institutional & Insider Ownership

6.5% of Bancorp 34 shares are owned by institutional investors. 7.4% of Bancorp 34 shares are owned by insiders. Comparatively, 19.8% of Northeast Indiana Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Bancorp 34 and Northeast Indiana Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bancorp 34	$28.85 million	2.68	-$3.40 million	($0.50)	-23.36
Northeast Indiana Bancorp	$27.36 million	1.51	$4.26 million	$1.78	9.61

Northeast Indiana Bancorp has lower revenue, but higher earnings than Bancorp 34. Bancorp 34 is trading at a lower price-to-earnings ratio than Northeast Indiana Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Northeast Indiana Bancorp beats Bancorp 34 on 8 of the 11 factors compared between the two stocks.

About Bancorp 34

Bancorp 34, Inc. operates as the holding company for Bank 34 that offers various banking products and services to individuals and businesses in the United States. It accepts various deposit products, such as savings accounts, checking accounts, money market accounts, demand and time deposits, NOW accounts, and individual retirement accounts, as well as certificates of deposit. The company also provides term, working capital, construction, USDA, small business administration, equipment, assisted living and skilled nursing, renewable energy and solar equipment, and commercial real estate loans; and small to medium size business and business acquisitions financing; lines of credit; multi-family finance; and employee stock ownership plans, HOA lending, and investor pools of single family rentals. In addition, it offers credit and debit cards; safe deposit boxes; treasury management products; and merchant card processing, cash management, e-banking, mobile and online banking, bill payment, and merchant capture services. The company operates through its network of full-service branches in Scottsdale and Arizona, as well as Alamogordo and Las Cruces, New Mexico. Bancorp 34, Inc. was founded in 1934 and is headquartered in Scottsdale, Arizona.

About Northeast Indiana Bancorp

Northeast Indiana Bancorp, Inc. operates as the bank holding company for First Federal Savings Bank that provides various banking and financial advisory services. The company offers checking accounts, savings accounts, retirement accounts, health savings accounts, and direct deposits, as well as certificates of deposit. It also provides mortgage, refinance, new construction, and home equity loans; auto, recreational vehicle, and unsecured loans; and revolving lines of credit, term loans, real estate loans, letter of credit, and small business administration loans, as well as debit and credit cards. In addition, the company offers merchant, online banking, and cash management services. It operates through full-service locations in Huntington, Warsaw, and Fort Wayne, Indiana. The company was founded in 1912 and is headquartered in Huntington, Indiana.