OFG Bancorp (NYSE:OFG – Get Rating) and ConnectOne Bancorp (NASDAQ:CNOB – Get Rating) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.
Institutional & Insider Ownership
93.5% of OFG Bancorp shares are owned by institutional investors. Comparatively, 68.1% of ConnectOne Bancorp shares are owned by institutional investors. 2.7% of OFG Bancorp shares are owned by insiders. Comparatively, 6.6% of ConnectOne Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
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Earnings & Valuation
This table compares OFG Bancorp and ConnectOne Bancorp's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| OFG Bancorp | $578.46 million | 2.23 | $146.15 million | $3.07 | 8.82 |
| ConnectOne Bancorp | $317.43 million | 3.12 | $130.35 million | $3.12 | 8.09 |
OFG Bancorp has higher revenue and earnings than ConnectOne Bancorp. ConnectOne Bancorp is trading at a lower price-to-earnings ratio than OFG Bancorp, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares OFG Bancorp and ConnectOne Bancorp's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
| OFG Bancorp | 25.87% | 14.64% | 1.49% |
| ConnectOne Bancorp | 38.52% | 12.69% | 1.55% |
Volatility and Risk
OFG Bancorp has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, ConnectOne Bancorp has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for OFG Bancorp and ConnectOne Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| OFG Bancorp | 0 | 0 | 2 | 0 | 3.00 |
| ConnectOne Bancorp | 0 | 0 | 2 | 0 | 3.00 |
OFG Bancorp presently has a consensus target price of $32.67, suggesting a potential upside of 20.67%. ConnectOne Bancorp has a consensus target price of $30.00, suggesting a potential upside of 18.91%. Given OFG Bancorp's higher probable upside, research analysts plainly believe OFG Bancorp is more favorable than ConnectOne Bancorp.
Dividends
OFG Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 2.2%. ConnectOne Bancorp pays an annual dividend of $0.62 per share and has a dividend yield of 2.5%. OFG Bancorp pays out 19.5% of its earnings in the form of a dividend. ConnectOne Bancorp pays out 19.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. OFG Bancorp has increased its dividend for 2 consecutive years and ConnectOne Bancorp has increased its dividend for 2 consecutive years.
About OFG Bancorp
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OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, as well as time deposit products; commercial, consumer, auto, and mortgage lending services; financial planning and insurance services; and corporate and individual trust, and retirement services. It also provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. In addition, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments; and management and participation in public offerings and private placements of debt and equity securities. Further, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company operates through a network of 50 branches in Puerto Rico and 2 branches in USVI. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.
About ConnectOne Bancorp
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ConnectOne Bancorp, Inc. operates as the bank holding company for ConnectOne Bank that provides commercial banking products and services for small and mid-sized businesses, local professionals, and individuals in the Northern New Jersey and New York Metropolitan area, and South Florida market. The company offers personal and business checking, retirement, money market, and time and savings accounts. It also provides consumer and commercial business loans on a secured and unsecured basis; revolving lines of credit; commercial mortgage loans; residential mortgages on primary and secondary residences; home equity loans; bridge loans; other personal purpose loans; and commercial construction and real estate loans. In addition, the company offers check cards, ATM cards, credit cards, wire transfers, access to automated teller services, Internet banking, treasury direct, automated clearing house origination, mobile banking by phone, safe deposit boxes, and remote deposit capture services. It operates through a network of eight banking offices in Bergen County, five banking offices in Union County, one banking office in Morris County, one office in Essex County, one office in Hudson County, one office in Monmouth County, one banking office in Manhattan in New York City, one office in Nassau County on Long Island, one in Astoria, and five branches in the Hudson Valley, as well as one financial center in West Palm Beach in Palm Beach County. The company was formerly known as Center Bancorp, Inc. and changed its name to ConnectOne Bancorp, Inc. in July 2014. ConnectOne Bancorp, Inc. was incorporated in 1982 and is headquartered in Englewood Cliffs, New Jersey.
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