OFG Bancorp (NYSE:OFG – Get Rating) and Auburn National Bancorporation (NASDAQ:AUBN – Get Rating) are both small cap finance companies, but which is the best investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.
OFG Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 2.2%. Auburn National Bancorporation pays an annual dividend of $1.06 per share and has a dividend yield of 3.5%. OFG Bancorp pays 19.9% of its profits as a dividend. Auburn National Bancorporation pays 46.1% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. OFG Bancorp has increased its dividend for 2 consecutive years and Auburn National Bancorporation has increased its dividend for 19 consecutive years. Auburn National Bancorporation is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.
Valuation and benefits
This chart compares the revenue, earnings per share (EPS), and valuation of OFG Bancorp and Auburn National Bancorporation.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|OFG Bancorp||$578.46 million||2h30||$146.15 million||$3.01||9.09|
|Auburn National Bancorporation||$30.80 million||3.43||$8.04 million||$2.30||13.04|
OFG Bancorp has higher revenue and profits than Auburn National Bancorporation. OFG Bancorp trades at a lower price-to-earnings ratio than Auburn National Bancorporation, indicating that it is currently the more affordable of the two stocks.
Volatility and risk
OFG Bancorp has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. In comparison, Auburn National Bancorporation has a beta of 0.51, indicating that its stock price is stock is 49% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for OFG Bancorp and Auburn National Bancorporation, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Auburn National Bancorporation||0||0||0||0||N / A|
OFG Bancorp currently has a consensus price target of $32.50, indicating a potential upside of 18.79%. Given OFG Bancorp’s possible higher upside, equity research analysts clearly believe that OFG Bancorp is more favorable than Auburn National Bancorporation.
This table compares the net margins, return on equity and return on assets of OFG Bancorp and Auburn National Bancorporation.
|Net margins||Return on equity||return on assets|
|Auburn National Bancorporation||27.08%||8.09%||0.75%|
Institutional and insider ownership
94.0% of OFG Bancorp’s shares are held by institutional investors. By comparison, 7.4% of Auburn National Bancorporation’s shares are held by institutional investors. 2.7% of OFG Bancorp’s shares are held by insiders of the company. By comparison, 3.2% of Auburn National Bancorporation’s stock is held by company insiders. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock is ripe for long-term growth.
OFG Bancorp beats Auburn National Bancorporation on 10 of 16 factors compared between the two stocks.
OFG Bancorp Company Profile (Get a rating)
OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management and Treasury. The company offers checking and savings accounts, as well as term deposit products; commercial, consumer, automobile and mortgage loan services; financial planning and insurance services; and corporate and personal trust and pension services. It also provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks and bonds to retail and institutional clients. ; and separately managed accounts and mutual fund asset allocation programs. In addition, the company is engaged in insurance and reinsurance agency business; pension plan administration and service; various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, US government-sponsored agency bonds, US Treasury securities and money market instruments; and managing and participating in public offerings and private placements of debt and equity securities. In addition, it offers fund management and investment banking services; and engages in asset and liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives and borrowings. The company operates through a network of 50 branches in Puerto Rico and 2 branches in USVI. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.
Company Profile Auburn National Bancorporation (Get a rating)
Auburn National Bancorporation, Inc. operates as a bank holding company for AuburnBank which provides various banking products and services in eastern Alabama. The Company’s deposit products include checking, savings and transaction deposit accounts, as well as certificates of deposit. It also offers commercial, financial, agricultural, building construction and consumer credit products; and other financial services. Additionally, the company offers ATM services; debit cards; online banking, bill payment and other electronic services; and safes. It operates through seven full-service branches in Auburn, Opelika, Notasulga and Valley, Alabama; as well as loan origination offices in Auburn and Phenix City, Alabama. Auburn National Bancorporation, Inc. was founded in 1907 and is headquartered in Auburn, Alabama.
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