Critical Comparison: Finward Bancorp (NASDAQ:FNWD) & CFSB Bancorp (NASDAQ:CFSB)

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

Valuation and Earnings

This table compares Finward Bancorp and CFSB Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Finward Bancorp	$96.53 million	1.40	$8.38 million	$2.69	11.67
CFSB Bancorp	$12.34 million	3.63	$30,000.00	($0.01)	-678.01

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

Profitability

This table compares Finward Bancorp and CFSB Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Finward Bancorp	10.44%	7.73%	0.55%
CFSB Bancorp	-0.75%	-0.13%	-0.03%

Analyst Ratings

This is a summary of current ratings for Finward Bancorp and CFSB Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Finward Bancorp	0	0	1	0	3.00
CFSB Bancorp	0	0	0	0	0.00

Finward Bancorp currently has a consensus price target of $31.00, indicating a potential downside of 1.27%. Given Finward Bancorp’s stronger consensus rating and higher possible upside, equities analysts plainly believe Finward Bancorp is more favorable than CFSB Bancorp.

Volatility and Risk

Finward Bancorp has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, CFSB Bancorp has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500.

Institutional & Insider Ownership

26.6% of Finward Bancorp shares are owned by institutional investors. Comparatively, 1.4% of CFSB Bancorp shares are owned by institutional investors. 13.7% of Finward Bancorp shares are owned by company insiders. Comparatively, 4.9% of CFSB Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Finward Bancorp beats CFSB Bancorp on 13 of the 14 factors compared between the two stocks.

About Finward Bancorp

Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services. The company’s deposit products include non-interest- and interest-bearing demand accounts, savings accounts, money market deposit accounts, certificate accounts, and retirement savings plans. Its loan products portfolio comprises residential mortgage loans that enable borrowers to purchase existing homes, refinance existing homes, or construct new homes; construction loans primarily to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household, or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities. The company also offers estate and retirement planning, custodial services, guardianships, IRA accounts, and investment agency accounts, as well as serves as the personal representative of estates, and acts as trustee for revocable and irrevocable trusts. In addition, it provides insurance and annuity investments to wealth management customers; holds real estate properties; and operates as a real estate investment trust. The company was formerly known as NorthWest Indiana Bancorp and changed its name to Finward Bancorp in May 2021. Finward Bancorp was founded in 1916 and is headquartered in Munster, Indiana.

About CFSB Bancorp

CFSB Bancorp, Inc. focuses on operating as a holding company for Colonial Federal Savings Bank that provides various financial services to individuals and small businesses. It accepts various deposits, including non-interest-bearing checking accounts, interest-bearing checking accounts, money market accounts, savings accounts, and certificates of deposit. The company offers one- to four-family residential real estate loans, multi-family real estate loans, commercial real estate loans, second mortgage loans, home equity lines of credit, and consumer loans. In addition, it invests in various types of investment grade investment securities and liquid assets comprising the U.S. treasury obligations, securities of various government-sponsored enterprises, corporate debt, mortgage-backed securities, collateralized mortgage obligations, asset-backed securities, municipal obligations, mutual funds, and certificates of deposit of federally insured institutions. Further, it offers online and mobile banking, and online bill pay services. The company operates through three full-service banking offices and one limited-service branch office in Norfolk County, Massachusetts. The company was founded in 1889 and is based in Quincy, Massachusetts. CFSB Bancorp, Inc. is a subsidiary of 15 Beach, MHC.