Analyzing NB Bancorp (NBBK) and Its Peers

NB Bancorp (NASDAQ:NBBK) is one of 43 public companies in the “Savings institutions, except federal” industry, but how does it contrast to its competitors? We will compare NB Bancorp to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, earnings, profitability and valuation.

Profitability

This table compares NB Bancorp and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NB Bancorp	13.86%	6.04%	0.93%
NB Bancorp Competitors	8.07%	4.80%	0.56%

Analyst Ratings

This is a breakdown of recent recommendations for NB Bancorp and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NB Bancorp	0	0	1	0	3.00
NB Bancorp Competitors	133	620	380	7	2.23

NB Bancorp currently has a consensus target price of $22.00, indicating a potential upside of 12.88%. As a group, “Savings institutions, except federal” companies have a potential upside of 4.71%. Given NB Bancorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe NB Bancorp is more favorable than its competitors.

Volatility and Risk

NB Bancorp has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, NB Bancorp’s competitors have a beta of 0.57, meaning that their average stock price is 43% less volatile than the S&P 500.

Insider and Institutional Ownership

44.7% of shares of all “Savings institutions, except federal” companies are owned by institutional investors. 1.7% of NB Bancorp shares are owned by insiders. Comparatively, 8.4% of shares of all “Savings institutions, except federal” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares NB Bancorp and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NB Bancorp	$172.73 million	$42.15 million	18.21
NB Bancorp Competitors	$479.46 million	-$13.20 million	4.42

NB Bancorp’s competitors have higher revenue, but lower earnings than NB Bancorp. NB Bancorp is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

NB Bancorp beats its competitors on 8 of the 13 factors compared.

NB Bancorp Company Profile

NB Bancorp, Inc. focuses on operating as a bank holding company for Needham Bank that provides various banking products and services in Greater Boston metropolitan area and surrounding communities in Massachusetts, eastern Connecticut, southern New Hampshire, and Rhode Island. The company offers various deposits, including certificate of deposit, individual retirement, money market, savings, NOW, demand deposit, and interest-bearing and noninterest-bearing checking accounts; and commercial real estate and multifamily, one- to four-family residential real estate, construction and land development, commercial and industrial, and consumer loans, as well as home equity loans and lines of credit. It also invests in securities consisting of U.S. treasury and federal agency securities, government-sponsored residential mortgage-backed securities, municipal bonds, and corporate bonds. The company was founded in 1892 and is based in Needham, Massachusetts.