Head to Head Analysis: Brookline Bancorp (NASDAQ:BRKL) vs. Finward Bancorp (NASDAQ:FNWD)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brookline Bancorp	11.40%	6.20%	0.65%
Finward Bancorp	10.44%	7.60%	0.55%

Analyst Recommendations

This is a summary of current recommendations for Brookline Bancorp and Finward Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookline Bancorp	0	1	1	1	3.00
Finward Bancorp	0	0	1	0	3.00

Brookline Bancorp currently has a consensus price target of $14.17, indicating a potential upside of 18.45%. Finward Bancorp has a consensus price target of $31.00, indicating a potential upside of 15.76%. Given Brookline Bancorp’s higher possible upside, research analysts clearly believe Brookline Bancorp is more favorable than Finward Bancorp.

Volatility & Risk

Brookline Bancorp has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Finward Bancorp has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500.

Dividends

Brookline Bancorp pays an annual dividend of $0.54 per share and has a dividend yield of 4.5%. Finward Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 1.8%. Brookline Bancorp pays out 65.1% of its earnings in the form of a dividend. Finward Bancorp pays out 17.8% 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.

Insider & Institutional Ownership

78.9% of Brookline Bancorp shares are held by institutional investors. Comparatively, 26.6% of Finward Bancorp shares are held by institutional investors. 2.9% of Brookline Bancorp shares are held by company insiders. Comparatively, 13.7% of Finward Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Brookline Bancorp and Finward Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookline Bancorp	$609.22 million	1.75	$75.00 million	$0.83	14.41
Finward Bancorp	$96.53 million	1.20	$8.38 million	$2.69	9.96

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

Summary

Brookline Bancorp beats Finward Bancorp on 11 of the 15 factors compared between the two stocks.

About Brookline Bancorp

Brookline Bancorp, Inc. operates as a bank holding company for the Brookline Bank that provide commercial, business, and retail banking services to corporate, municipal, and retail customers in the United States. Its deposit products include demand checking, NOW, money market, and savings accounts. The company’s loan portfolio primarily comprises first mortgage loans secured by commercial, multi-family, and residential real estate properties; loans to business entities comprising commercial lines of credit; loans to condominium associations; loans and leases used to finance equipment for small businesses; financing for construction and development projects; and home equity and other consumer loans. It provides credit, term loans, letters of credit, foreign exchange, cash management, consumer and residential loans, wealth and investment advisory, and online and mobile banking services, as well as invests in debt and equity securities. The company was founded in 1871 and is headquartered in Boston, Massachusetts.

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.