Reviewing Gouverneur Bancorp (OTCMKTS:GOVB) & Broadway Financial (NASDAQ:BYFC)

Broadway Financial (NASDAQ:BYFC) and Gouverneur Bancorp (OTCMKTS:GOVB) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Broadway Financial	4.66%	2.15%	0.21%
Gouverneur Bancorp	N/A	N/A	N/A

Institutional & Insider Ownership

12.1% of Broadway Financial shares are owned by institutional investors. Comparatively, 21.6% of Gouverneur Bancorp shares are owned by institutional investors. 4.7% of Broadway Financial shares are owned by company insiders. Comparatively, 4.1% of Gouverneur Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Broadway Financial and Gouverneur Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadway Financial	0	0	0	0	N/A
Gouverneur Bancorp	0	0	0	0	N/A

Volatility & Risk

Broadway Financial has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Gouverneur Bancorp has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500.

Earnings & Valuation

This table compares Broadway Financial and Gouverneur Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadway Financial	$34.75 million	1.84	$4.51 million	$0.30	23.33
Gouverneur Bancorp	$7.35 million	1.54	$1.53 million	N/A	N/A

Broadway Financial has higher revenue and earnings than Gouverneur Bancorp.

Summary

Broadway Financial beats Gouverneur Bancorp on 8 of the 9 factors compared between the two stocks.

About Broadway Financial

Broadway Financial Corporation operates as the holding company for City First Bank, National Association that provides various banking products and services in the United States. It accepts various deposit accounts, including savings accounts, checking accounts, interest checking accounts, money market accounts, and fixed-term certificates of deposit. The company also offers mortgage loans, which are secured by multi-family residential properties; single family residential properties; and commercial real estate, including charter schools, community facilities, and churches, as well as commercial business, construction, and consumer loans. In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments. The company was founded in 1946 and is headquartered in Los Angeles, California.

About Gouverneur Bancorp

Gouverneur Bancorp, Inc. operates as the holding company for Gouverneur Savings and Loan Association that provides various banking products and services to individuals and businesses in New York. It accepts passbook savings, NOW, money market deposit, and checking accounts, as well as certificates of deposit. The company's loan products include mortgage loans, one- to four-family residential loans, commercial real estate loans, and multi-family residential real estate loans, residential and commercial construction loans, commercial land loans, home equity loans, lines of credit, commercial loans, automobiles, motorcycles, campers, boats, and other recreational vehicles, as well as personal secured and unsecured loans. It also invests in municipal bonds, U.S. Treasury securities, U.S. Government agencies and government-sponsored obligations, and mortgage-backed securities. In addition, the company offers online, mobile, bill pay, and telephone banking; electronic or paper statements; and ATM, debit cards, direct deposits, mobile remote deposit capture, automatic payments and transfers, bank checks, wire transfers, and safe deposit box services. It serves primarily the St. Lawrence County, and Jefferson and Lewis counties in New York State. The company was founded in 1892 and is headquartered in Gouverneur, New York.