First Niles Financial (OTCMKTS:FNFI) versus Pathfinder Bancorp (NASDAQ:PBHC) Financial Analysis

First Niles Financial (OTCMKTS:FNFI) and Pathfinder Bancorp (NASDAQ:PBHC) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Institutional & Insider Ownership

26.7% of Pathfinder Bancorp shares are held by institutional investors. 23.4% of First Niles Financial shares are held by company insiders. Comparatively, 15.4% of Pathfinder Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares First Niles Financial and Pathfinder Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Niles Financial	N/A	N/A	N/A
Pathfinder Bancorp	-4.96%	-3.20%	-0.27%

Dividends

First Niles Financial pays an annual dividend of $0.24 per share and has a dividend yield of 3.0%. Pathfinder Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.9%. First Niles Financial pays out 51.1% of its earnings in the form of a dividend. Pathfinder Bancorp pays out -63.5% 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. Pathfinder Bancorp has increased its dividend for 1 consecutive years.

Volatility & Risk

First Niles Financial has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Pathfinder Bancorp has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for First Niles Financial and Pathfinder Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Niles Financial	0	0	0	0	0.00
Pathfinder Bancorp	1	0	0	0	1.00

Earnings & Valuation

This table compares First Niles Financial and Pathfinder Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Niles Financial	$14.03 million	0.88	$840,000.00	$0.47	17.13
Pathfinder Bancorp	$79.15 million	0.84	-$1.93 million	($0.63)	-21.68

First Niles Financial has higher earnings, but lower revenue than Pathfinder Bancorp. Pathfinder Bancorp is trading at a lower price-to-earnings ratio than First Niles Financial, indicating that it is currently the more affordable of the two stocks.

Summary

First Niles Financial beats Pathfinder Bancorp on 10 of the 15 factors compared between the two stocks.

About First Niles Financial

First Niles Financial, Inc. operates as a holding company for the Home Federal Savings and Loan Association of Niles that provides various banking products and services in Ohio, the United States. The company offers personal and business checking and savings, money market deposit, and Christmas club accounts, as well as certificates of deposit. It also provides various loans, including mortgage and consumer loans, home equity lines of credit, and commercial loans and lines of credit. In addition, the company provides e-statement, and night depository services; debit and ATM cards; safe deposit boxes; direct deposits; I.R.A. certificates of deposit and savings accounts; and online banking services. First Niles Financial, Inc. was founded in 1897 and is based in Niles, Ohio.

About Pathfinder Bancorp

Pathfinder Bancorp, Inc. operates as a bank holding company for Pathfinder Bank that provides various banking and financial products and services in New York. The company's deposit products include checking, savings, and money market deposit accounts; certificates of deposit; and demand and time deposits. Its loan portfolio comprises commercial real estate, commercial, residential real estate, construction, and tax-exempt loans; home equity loans and junior liens; and consumer loans comprising automobile, recreational vehicles, and unsecured personal loans, as well as unsecured lines of credit and loans secured by deposit accounts. The company is also involved in the property, casualty, and life insurance brokerage business. It primarily serves individuals, families, small to mid-size businesses, and municipalities. The company was founded in 1859 and is headquartered in Oswego, New York.