BNP Paribas (OTCMKTS:BNPQY) & Northpointe Bancshares (NYSE:NPB) Financial Analysis

Northpointe Bancshares (NYSE:NPB) and BNP Paribas (OTCMKTS:BNPQY) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.

Institutional & Insider Ownership

1.2% of BNP Paribas shares are owned by institutional investors. 18.3% of Northpointe Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Northpointe Bancshares has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, BNP Paribas has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Profitability

This table compares Northpointe Bancshares and BNP Paribas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northpointe Bancshares	16.27%	13.88%	1.12%
BNP Paribas	25.42%	10.39%	0.48%

Dividends

Northpointe Bancshares pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. BNP Paribas pays an annual dividend of $2.71 per share and has a dividend yield of 5.7%. Northpointe Bancshares pays out 5.6% of its earnings in the form of a dividend. BNP Paribas pays out 39.3% 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.

Analyst Recommendations

This is a summary of current ratings for Northpointe Bancshares and BNP Paribas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northpointe Bancshares	1	2	2	0	2.20
BNP Paribas	1	2	3	1	2.57

Northpointe Bancshares currently has a consensus target price of $20.25, indicating a potential upside of 28.41%. Given Northpointe Bancshares’ higher possible upside, equities research analysts plainly believe Northpointe Bancshares is more favorable than BNP Paribas.

Valuation & Earnings

This table compares Northpointe Bancshares and BNP Paribas”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northpointe Bancshares	$248.79 million	2.19	$83.41 million	$2.13	7.40
BNP Paribas	$57.94 billion	1.82	$13.83 billion	$6.89	6.93

BNP Paribas has higher revenue and earnings than Northpointe Bancshares. BNP Paribas is trading at a lower price-to-earnings ratio than Northpointe Bancshares, indicating that it is currently the more affordable of the two stocks.

Summary

BNP Paribas beats Northpointe Bancshares on 10 of the 17 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 BNP Paribas

BNP Paribas SA provides various banking and financial products and services in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. It operates through three divisions: Corporate & Institutional Banking; Commercial, Personal Banking & Services; and Investment & Protection Services. The Corporate & Institutional Banking division offers capital market, securities, investment banking, financing, risk management, cash management, and financial advisory services for corporate clients and institutional investors. The Commercial, Personal Banking & Services division provides financing and equipment leasing services, mobility, and digital banking services, as well as current accounts, savings products, bancassurance, insurance products and services, and consumer loans. The Investment & Protection Services division provides protection, savings, investment, and real estate services to support individuals, professionals, corporate clients, and institutions. The company was formerly known as Banque Nationale de Paris and changed its name to BNP Paribas SA in May 2000. BNP Paribas SA was founded in 1822 and is headquartered in Paris, France.