Cullman Bancorp (NASDAQ:CULL – Get Rating) and Northeast Community Bancorp (OTCMKTS:NECB – Get Rating) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Profitability
This table compares Cullman Bancorp and Northeast Community Bancorp's net margins, return on equity and return on assets.
Get Cullman Bancorp alerts:| Net Margins | Return on Equity | Return on Assets | |
| Cullman Bancorp | 15.38% | 2.47% | 0.67% |
| Northeast Community Bancorp | 25.53% | 5.56% | 1.16% |
Volatility & Risk
Cullman Bancorp has a beta of -0.05, indicating that its share price is 105% less volatile than the S&P 500. Comparatively, Northeast Community Bancorp has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.
Dividends
Cullman Bancorp pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Northeast Community Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.9%. Cullman Bancorp pays out 35.3% of its earnings in the form of a dividend. Northeast Community Bancorp pays out 26.7% 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. Northeast Community Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.Valuation & Earnings
This table compares Cullman Bancorp and Northeast Community Bancorp's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cullman Bancorp | $14.88 million | 5.63 | $1.75 million | $0.34 | 33.25 |
| Northeast Community Bancorp | $50.76 million | 4.03 | $11.90 million | $0.90 | 13.91 |
Northeast Community Bancorp has higher revenue and earnings than Cullman Bancorp. Northeast Community Bancorp is trading at a lower price-to-earnings ratio than Cullman Bancorp, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
6.5% of Cullman Bancorp shares are held by institutional investors. Comparatively, 25.8% of Northeast Community Bancorp shares are held by institutional investors. 15.7% of Cullman Bancorp shares are held by company insiders. Comparatively, 2.3% of Northeast Community Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations for Cullman Bancorp and Northeast Community Bancorp, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cullman Bancorp | 0 | 0 | 0 | 0 | N/A |
| Northeast Community Bancorp | 0 | 0 | 1 | 0 | 3.00 |
Northeast Community Bancorp has a consensus price target of $12.50, suggesting a potential downside of 0.17%. Given Northeast Community Bancorp's higher probable upside, analysts plainly believe Northeast Community Bancorp is more favorable than Cullman Bancorp.
Summary
Northeast Community Bancorp beats Cullman Bancorp on 12 of the 15 factors compared between the two stocks.
About Cullman Bancorp
(Get Rating)
Cullman Bancorp, Inc. operates as the holding company for Cullman Savings Bank that provides various banking products and services. It offers checking, savings, and individual retirement accounts, as well as certificates of deposit accounts. The company also provides one- to four-family residential real estate, commercial real estate, commercial and industrial, construction, multi-family real estate, and consumer loans; and invests in securities. It operates three branch offices in Cullman, Alabama; and one branch office in Hanceville, Alabama. The company was founded in 1887 and is headquartered in Cullman, Alabama.
About Northeast Community Bancorp
(Get Rating)
Northeast Community Bancorp, Inc. operates as the holding company for NorthEast Community Bank that provides financial services for individuals and businesses. It accepts various deposit instruments, including checking accounts, money market accounts, regular savings accounts, and non-interest bearing demand accounts. The company also offers construction, commercial and industrial, multifamily and mixed-use real estate, non-residential real estate loans, and consumer loans. In addition, it invests in various types of liquid assets, including U.S. Treasury obligations, municipal securities, deposits at the Federal Home Loan Bank of New York, and certificates of deposit of federally insured institutions, as well as securities of various federal agencies, and of state and municipal governments. Further, the company offers investment advisory and financial planning services; and life insurance products and fixed-rate annuities. It operates seven full-service branches in New York and three full-service branches in Massachusetts; and loan production offices in White Plains and New City, New York, as well as Danvers, Massachusetts. The company was founded in 1934 and is based in White Plains, New York.
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