Brookline Bancorp (NASDAQ:BRKL) & FFD Financial (NASDAQ:FFDF) Critical Review

FFD Financial (OTCMKTS:FFDF) and Brookline Bancorp (NASDAQ:BRKL) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Institutional & Insider Ownership

2.0% of FFD Financial shares are owned by institutional investors. Comparatively, 78.5% of Brookline Bancorp shares are owned by institutional investors. 11.5% of FFD Financial shares are owned by company insiders. Comparatively, 2.5% of Brookline Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for FFD Financial and Brookline Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FFD Financial 0 0 0 0 N/A
Brookline Bancorp 0 3 1 0 2.25

Brookline Bancorp has a consensus target price of $16.67, suggesting a potential upside of 4.04%. Given Brookline Bancorp’s higher possible upside, analysts clearly believe Brookline Bancorp is more favorable than FFD Financial.

Profitability

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

Net Margins Return on Equity Return on Assets
FFD Financial N/A N/A N/A
Brookline Bancorp 23.28% 9.63% 1.16%

Dividends

FFD Financial pays an annual dividend of $1.90 per share and has a dividend yield of 3.2%. Brookline Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 2.7%. Brookline Bancorp pays out 41.1% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares FFD Financial and Brookline Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FFD Financial $19.27 million 3.11 $6.32 million N/A N/A
Brookline Bancorp $339.12 million 3.77 $83.06 million $1.07 14.97

Brookline Bancorp has higher revenue and earnings than FFD Financial.

Volatility and Risk

FFD Financial has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500. Comparatively, Brookline Bancorp has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Summary

Brookline Bancorp beats FFD Financial on 10 of the 13 factors compared between the two stocks.

About FFD Financial

FFD Financial Corporation operates as the holding company for First Federal Community Bank, National Association that provides banking products and services. It offers various deposit products, including checking, savings, money market, health savings, and club accounts, as well as certificates of deposit and individual retirement accounts. The company also provides home mortgage loans, home equity line of credit, auto and boat loans, overdraft protection line of credit, personal loans, business term loans and lines of credit, commercial real estate loans, and equipment loans; and credit and debit cards. In addition, it offers online banking and bill pay, e-statement, overdraft protection, mobile banking, night depository, cash management, wire transfer, safe deposit box, night depository, and teller services. Further, the company through its subsidiary, FFD Risk Management, Inc., provides property and casualty insurance services. It operates branches in Dover, New Philadelphia, Boulevard, Sugarcreek, Berlin, and Mt. Hope. FFD Financial Corporation was founded in 1898 and is based in Dover, Ohio.

About Brookline Bancorp

Brookline Bancorp, Inc. operates as the holding company for Brookline Bank, Bank Rhode Island, First Ipswich Bank, and Brookline Securities Corp that provide commercial, business, and retail banking services to corporate, municipal, and retail customers in the United States. Its deposit products include non-interest-bearing demand checking accounts, NOW accounts, savings accounts, and money market accounts, as well as commercial, municipal, and retail deposits. The company's loan portfolio primarily comprises first mortgage loans secured by commercial, multi-family, and residential real estate properties; loans to business entities comprising commercial lines of credit; loans to condominium associations; financing for construction and development projects; home equity and other consumer loans; and commercial loans and leases to small and midsized businesses. It also provides term loans, letters of credit, cash management, investment advisory, and online and mobile banking services, as well as invests in debt and equity securities. As of December 31, 2018, the Company operated 51 full-service banking offices in greater Boston, the north shore of Massachusetts, and Rhode Island. Brookline Bancorp, Inc. was founded in 1871 and is headquartered in Boston, Massachusetts.

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