Head-To-Head Analysis: Finward Bancorp (NASDAQ:FNWD) & Oconee Federal Financial (NASDAQ:OFED)

Finward Bancorp (NASDAQ:FNWD) and Oconee Federal Financial (NASDAQ:OFED) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Valuation and Earnings

This table compares Finward Bancorp and Oconee Federal Financial”s 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	1.39	$8.38 million	$2.69	11.60
Oconee Federal Financial	$16.85 million	5.03	$6.26 million	$1.18	12.29

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Finward Bancorp	10.44%	7.60%	0.55%
Oconee Federal Financial	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and target prices for Finward Bancorp and Oconee Federal Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Finward Bancorp	0	0	1	0	3.00
Oconee Federal Financial	0	0	0	0	0.00

Finward Bancorp presently has a consensus target price of $31.00, suggesting a potential downside of 0.64%. Given Finward Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Finward Bancorp is more favorable than Oconee Federal Financial.

Insider and Institutional Ownership

26.6% of Finward Bancorp shares are held by institutional investors. 13.7% of Finward Bancorp shares are held by insiders. Comparatively, 5.1% of Oconee Federal Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Finward Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 1.5%. Oconee Federal Financial pays an annual dividend of $0.40 per share and has a dividend yield of 2.8%. Finward Bancorp pays out 17.8% of its earnings in the form of a dividend. Oconee Federal Financial pays out 33.9% 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.

Volatility & Risk

Finward Bancorp has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Oconee Federal Financial has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500.

Summary

Finward Bancorp beats Oconee Federal Financial on 13 of the 16 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 Oconee Federal Financial

Oconee Federal Financial Corp. operates as a holding company for Oconee Federal Savings and Loan Association that provides various banking products and services in the Oconee and Pickens County areas of northwestern South Carolina, and the northeast area of Georgia in Stephens County and Rabun County. It offers deposit products, including demand, money market, NOW, savings, and individual retirement accounts, as well as certificates of deposit. The company’s loan portfolio comprises one-to-four family residential and multi-family real estate loans; home equity loans and lines of credit; nonresidential real estate loans; mortgage loans; construction and land loans; commercial and industrial loans; agricultural loans; and consumer and other loans, such as installment loans for various consumer purposes, including the purchase of automobiles, boats, and other legitimate personal purposes. Oconee Federal Financial Corp. was founded in 1924 and is based in Seneca, South Carolina. Oconee Federal Financial Corp. operates as a subsidiary of Oconee Federal, MHC.