Financial Survey: Sussex Bancorp (SBBX) versus BankFinancial Corporation (BFIN)

Sussex Bancorp (NASDAQ: SBBX) and BankFinancial Corporation (NASDAQ:BFIN) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Profitability

This table compares Sussex Bancorp and BankFinancial Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sussex Bancorp 15.13% 9.43% 0.75%
BankFinancial Corporation 15.58% 4.55% 0.58%

Valuation & Earnings

This table compares Sussex Bancorp and BankFinancial Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sussex Bancorp $32.87 million 4.25 $7.62 million $1.28 18.36
BankFinancial Corporation $55.23 million 5.18 $8.98 million $0.49 31.88

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

Analyst Ratings

This is a breakdown of recent ratings for Sussex Bancorp and BankFinancial Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sussex Bancorp 0 0 0 0 N/A
BankFinancial Corporation 0 0 1 0 3.00

BankFinancial Corporation has a consensus price target of $17.00, suggesting a potential upside of 8.83%. Given BankFinancial Corporation’s higher possible upside, analysts clearly believe BankFinancial Corporation is more favorable than Sussex Bancorp.

Institutional & Insider Ownership

52.7% of Sussex Bancorp shares are owned by institutional investors. Comparatively, 62.4% of BankFinancial Corporation shares are owned by institutional investors. 17.6% of Sussex Bancorp shares are owned by company insiders. Comparatively, 15.5% of BankFinancial Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Sussex Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. BankFinancial Corporation pays an annual dividend of $0.28 per share and has a dividend yield of 1.8%. Sussex Bancorp pays out 18.8% of its earnings in the form of a dividend. BankFinancial Corporation pays out 57.1% 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 and Risk

Sussex Bancorp has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500. Comparatively, BankFinancial Corporation has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500.

Summary

BankFinancial Corporation beats Sussex Bancorp on 10 of the 15 factors compared between the two stocks.

Sussex Bancorp Company Profile

Sussex Bancorp is a bank holding company for Sussex Bank (the Bank). The Company’s primary business is the ownership and supervision of the Bank. The Company has two business segments: banking and financial services, and insurance services. The Company, through the Bank, conducts a traditional commercial banking business, and offer services, including personal and business checking accounts and time deposits, money market accounts and savings accounts. The Company, through the Bank’s subsidiary, Tri-State, operates a full service general insurance agency, offering both commercial and personal lines of insurance. The Company’s service area primarily consists of Sussex, Morris and Bergen Counties in New Jersey, and Orange and Queens Counties, New York. The Company’s loan portfolio includes commercial and industrial consumer loans, construction loans, commercial real estate loans, residential real estate loans, and consumer and other loans.

BankFinancial Corporation Company Profile

BankFinancial Corporation is the bank holding company for BankFinancial, National Association (the Bank). The Bank is a full-service, community-oriented national bank principally engaged in the business of commercial, family and personal banking. The Bank offers its customers a range of loan, deposit and other financial products and services through its full-service Illinois-based banking offices located in Cook, DuPage, Lake and Will Counties, and through its Internet branch, www.bankfinancial.com. As of December 31, 2016, the Bank had 19 full-service Illinois-based banking offices. The Bank also offers its customers a range of financial products and services that are related or ancillary to loans and deposits, including cash management, funds transfers, bill payment, and other online and mobile banking transactions, automated teller machines, safe deposit boxes, trust services, wealth management and general insurance agency services.

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