Financial Analysis: Community Heritage Financial (OTCMKTS:CMHF) and Northpointe Bancshares (NYSE:NPB)

Community Heritage Financial (OTCMKTS:CMHF) and Northpointe Bancshares (NYSE:NPB) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Profitability

This table compares Community Heritage Financial and Northpointe Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Heritage Financial	N/A	N/A	N/A
Northpointe Bancshares	N/A	N/A	N/A

Earnings and Valuation

This table compares Community Heritage Financial and Northpointe Bancshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Heritage Financial	$57.30 million	1.25	$6.62 million	$2.26	10.80
Northpointe Bancshares	$187.14 million	2.28	N/A	N/A	N/A

Community Heritage Financial has higher earnings, but lower revenue than Northpointe Bancshares.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Community Heritage Financial and Northpointe Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Heritage Financial	0	0	0	0	0.00
Northpointe Bancshares	0	0	2	0	3.00

Northpointe Bancshares has a consensus target price of $17.25, suggesting a potential upside of 22.43%. Given Northpointe Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe Northpointe Bancshares is more favorable than Community Heritage Financial.

Insider and Institutional Ownership

12.2% of Community Heritage Financial shares are owned by institutional investors. 18.4% of Northpointe Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Community Heritage Financial pays an annual dividend of $0.32 per share and has a dividend yield of 1.3%. Northpointe Bancshares pays an annual dividend of $0.10 per share and has a dividend yield of 0.7%. Community Heritage Financial pays out 14.2% of its earnings in the form of a dividend.

Summary

Northpointe Bancshares beats Community Heritage Financial on 7 of the 9 factors compared between the two stocks.

About Community Heritage Financial

Community Heritage Financial, Inc. operates as the bank holding company for Middletown Valley Bank that provides retail and commercial banking services to individuals and businesses in Frederick and Washington counties in Maryland and Franklin County, Pennsylvania. Its primary deposit products include demand, savings, and time deposits, as well as lending products comprise real estate mortgages, commercial business loans, and instalment loans. The company also offers mortgage financing, new home purchases, refinancing, and construction lending in Middletown, Crofton, and Oakland, Maryland. The company was founded in 1908 and is based in Middletown, Maryland.

About Northpointe Bancshares

Northpointe Bancshares, Inc. operates as a bank holding company. It offers a nationwide mortgage purchase program, residential mortgage loans, digital deposit banking to retail customers and custodial deposit services. The company was founded by Charles A. Williams in 1998 and is headquartered in Grand Rapids, MI.