Financial Analysis: Broadway Financial (NASDAQ:BYFC) and NSTS Bancorp (NASDAQ:NSTS)

Volatility & Risk

Broadway Financial has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, NSTS Bancorp has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500.

Insider & Institutional Ownership

12.1% of Broadway Financial shares are held by institutional investors. Comparatively, 23.7% of NSTS Bancorp shares are held by institutional investors. 4.7% of Broadway Financial shares are held by company insiders. Comparatively, 4.6% of NSTS Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Broadway Financial	3.02%	1.44%	0.14%
NSTS Bancorp	-48.24%	-5.83%	-1.71%

Earnings & Valuation

This table compares Broadway Financial and NSTS Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadway Financial	$63.76 million	1.07	$1.93 million	$0.04	187.80
NSTS Bancorp	$6.58 million	9.92	-$3.96 million	($0.90)	-13.79

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

Summary

Broadway Financial beats NSTS Bancorp on 9 of the 11 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 NSTS Bancorp

NSTS Bancorp, Inc. operates as a savings and loan holding company for North Shore Trust and Savings that provides banking products and services in Illinois. The company offers interest-bearing and noninterest-bearing checking, money market, savings, and time deposit accounts; and one- to four-family residential mortgage, multi-family and commercial real estate mortgage, construction, home equity, and consumer loans. It operates through full-service banking offices in Lake County, Illinois; and one loan production office in Chicago. The company was founded in 1921 and is headquartered in Waukegan, Illinois.