Head-To-Head Comparison: Northpointe Bancshares (NYSE:NPB) vs. Community Heritage Financial (OTCMKTS:CMHF)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northpointe Bancshares	$187.14 million	2.30	N/A	N/A	N/A
Community Heritage Financial	$57.30 million	1.28	$7.09 million	$2.42	10.33

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

Institutional and Insider Ownership

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

Analyst Recommendations

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

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

Northpointe Bancshares presently has a consensus target price of $17.25, suggesting a potential upside of 21.56%. Given Northpointe Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe Northpointe Bancshares is more favorable than Community Heritage Financial.

Profitability

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

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

Dividends

Northpointe Bancshares pays an annual dividend of $0.10 per share and has a dividend yield of 0.7%. Community Heritage Financial pays an annual dividend of $0.32 per share and has a dividend yield of 1.3%. Community Heritage Financial pays out 13.2% 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 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.

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.