Southern States Bancshares (NASDAQ:SSBK) versus Northeast Bank (NASDAQ:NBN) Financial Analysis

Southern States Bancshares (NASDAQ:SSBK) and Northeast Bank (NASDAQ:NBN) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Valuation and Earnings

This table compares Southern States Bancshares and Northeast Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southern States Bancshares	$177.17 million	1.83	$31.95 million	$3.67	8.96
Northeast Bank	$263.77 million	3.16	$58.23 million	$7.70	13.17

Northeast Bank has higher revenue and earnings than Southern States Bancshares. Southern States Bancshares is trading at a lower price-to-earnings ratio than Northeast Bank, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

58.7% of Southern States Bancshares shares are owned by institutional investors. 14.8% of Southern States Bancshares shares are owned by insiders. Comparatively, 14.2% of Northeast Bank shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Southern States Bancshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. Northeast Bank pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Southern States Bancshares pays out 9.8% of its earnings in the form of a dividend. Northeast Bank pays out 0.5% 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Southern States Bancshares and Northeast Bank, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southern States Bancshares	0	0	2	0	3.00
Northeast Bank	0	1	1	0	2.50

Southern States Bancshares presently has a consensus target price of $35.50, suggesting a potential upside of 7.90%. Northeast Bank has a consensus target price of $91.00, suggesting a potential downside of 10.27%. Given Southern States Bancshares’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Southern States Bancshares is more favorable than Northeast Bank.

Risk and Volatility

Southern States Bancshares has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, Northeast Bank has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Profitability

This table compares Southern States Bancshares and Northeast Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southern States Bancshares	19.68%	15.04%	1.38%
Northeast Bank	21.94%	N/A	N/A

About Southern States Bancshares

Southern States Bancshares, Inc. operates as the bank holding company for Southern States Bank that provides community banking services to businesses and individuals. The company provides various deposit products, such as savings, money market, and noninterest-bearing demand accounts; certificates of deposit; and time deposits. It offers real estate loan products, including loans for real estate construction and development, residential mortgages, and commercial real estate mortgage loans; commercial and industrial loans; and direct consumer installment loans, overdrafts, and other revolving credit loans. In addition, it offers online and mobile banking, and ATM services. Southern States Bancshares, Inc. was founded in 2007 and is headquartered in Anniston, Alabama.

About Northeast Bank

Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. Further, it provides various services, such as money market, merchant, and payroll and HR. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.