Finward Bancorp (NASDAQ:FNWD – Get Free Report) and FlexShopper (NASDAQ:FPAY – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.
Insider & Institutional Ownership
26.6% of Finward Bancorp shares are owned by institutional investors. Comparatively, 19.4% of FlexShopper shares are owned by institutional investors. 5.2% of Finward Bancorp shares are owned by company insiders. Comparatively, 30.2% of FlexShopper shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations for Finward Bancorp and FlexShopper, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Finward Bancorp | 0 | 1 | 1 | 0 | 2.50 |
| FlexShopper | 0 | 0 | 2 | 0 | 3.00 |
Volatility and Risk
Finward Bancorp has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, FlexShopper has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.
Earnings and Valuation
This table compares Finward Bancorp and FlexShopper”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Finward Bancorp | $111.82 million | 1.26 | $12.13 million | $1.24 | 26.20 |
| FlexShopper | $139.80 million | 0.11 | -$180,000.00 | ($0.23) | -3.15 |
Finward Bancorp has higher earnings, but lower revenue than FlexShopper. FlexShopper is trading at a lower price-to-earnings ratio than Finward Bancorp, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Finward Bancorp and FlexShopper’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Finward Bancorp | 5.23% | 3.45% | 0.26% |
| FlexShopper | -0.13% | 6.45% | 0.22% |
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.
About FlexShopper
FlexShopper, Inc., a financial technology company, operates an e-commerce marketplace to shop electronics, home furnishings, and other durable goods on a lease-to-own (LTO) basis. The company offers consumer electronics; home appliances; computers, such as tablets and wearables; smartphones; tires; and jewelry and furniture, including accessories. It also provides payment options to consumers. The company offers its products under the LG, Samsung, Sony, TCL, Frigidaire, General Electric, Whirlpool, Apple, Asus, Dell, Hewlett Packard, Toshiba, Resident, Sealy, and Ashley brands. The company was formerly known as Anchor Funding Services, Inc. and changed its name to FlexShopper, Inc. in October 2013. FlexShopper, Inc. was founded in 2003 and is headquartered in Boca Raton, Florida.
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