NSTS Bancorp (NASDAQ:NSTS) versus Northrim BanCorp (NASDAQ:NRIM) Financial Analysis

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

Volatility and Risk

NSTS Bancorp has a beta of 0.04, indicating that its share price is 96% less volatile than the S&P 500. Comparatively, Northrim BanCorp has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Valuation and Earnings

This table compares NSTS Bancorp and Northrim BanCorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NSTS Bancorp	$6.26 million	9.98	-$3.96 million	($0.90)	-13.19
Northrim BanCorp	$155.22 million	2.64	$36.97 million	$6.62	11.19

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

Profitability

This table compares NSTS Bancorp and Northrim BanCorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NSTS Bancorp	-48.24%	-5.83%	-1.71%
Northrim BanCorp	18.87%	14.86%	1.30%

Insider and Institutional Ownership

23.7% of NSTS Bancorp shares are held by institutional investors. Comparatively, 66.0% of Northrim BanCorp shares are held by institutional investors. 4.6% of NSTS Bancorp shares are held by insiders. Comparatively, 4.1% of Northrim BanCorp shares are held 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.

Analyst Ratings

This is a summary of recent recommendations for NSTS Bancorp and Northrim BanCorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NSTS Bancorp	0	0	0	0	0.00
Northrim BanCorp	0	0	1	0	3.00

Northrim BanCorp has a consensus target price of $96.50, suggesting a potential upside of 30.23%. Given Northrim BanCorp’s stronger consensus rating and higher possible upside, analysts clearly believe Northrim BanCorp is more favorable than NSTS Bancorp.

Summary

Northrim BanCorp beats NSTS Bancorp on 12 of the 14 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 Northrim BanCorp

Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals. It operates through two segments, Community Banking and Home Mortgage Lending. The company offers noninterest-bearing checking accounts and interest-bearing time deposits, checking and savings accounts, individual retirement and money market deposit accounts, certificates of deposit, and business sweep accounts. It also provides short and medium-term commercial loans, commercial credit lines, construction and real estate loans, and consumer loans, as well as short-term working capital. In addition, the company offers other services comprising consumer and business online banking, mobile app, and mobile deposits; and debit and credit cards. Further, it provides mobile web and app banking, consumer online account opening, personal finance, online documents, consumer debit cards, business debit cards, my rewards for consumer debit cards, retail lockbox, card control, corporate purchase cards, integrated payables, home equity advantage access cards, telebanking, and automated teller services. Additionally, the company offers personalized checks at account opening, overdraft protection from a savings account, commercial drive-up banking, automatic transfer and payment, People Pay, external transfer, Bill Pay, wire transfer, direct payroll deposit, electronic tax payment, Automated Clearing House origination and receipt, remote deposit capture, account reconciliation and positive pay, merchant, cash management, annuity, and long-term investment portfolio products and services. It also provides investment advisory, trust, wealth management, factoring, and mortgage services. The company was founded in 1990 and is headquartered in Anchorage, Alaska.