Head to Head Review: First Northwest Bancorp (NASDAQ:FNWB) and Eagle Bancorp Montana (NASDAQ:EBMT)

Eagle Bancorp Montana (NASDAQ:EBMT) and First Northwest Bancorp (NASDAQ:FNWB) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Earnings and Valuation

This table compares Eagle Bancorp Montana and First Northwest Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eagle Bancorp Montana	$127.08 million	1.33	$14.84 million	$2.04	10.43
First Northwest Bancorp	$118.64 million	0.80	-$4.19 million	$0.16	62.50

Eagle Bancorp Montana has higher revenue and earnings than First Northwest Bancorp. Eagle Bancorp Montana is trading at a lower price-to-earnings ratio than First Northwest Bancorp, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Eagle Bancorp Montana has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, First Northwest Bancorp has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Eagle Bancorp Montana and First Northwest Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eagle Bancorp Montana	0	3	0	1	2.50
First Northwest Bancorp	0	3	1	0	2.25

Eagle Bancorp Montana currently has a consensus price target of $23.50, suggesting a potential upside of 10.43%. First Northwest Bancorp has a consensus price target of $15.00, suggesting a potential upside of 50.00%. Given First Northwest Bancorp’s higher probable upside, analysts plainly believe First Northwest Bancorp is more favorable than Eagle Bancorp Montana.

Insider and Institutional Ownership

35.7% of Eagle Bancorp Montana shares are held by institutional investors. Comparatively, 66.1% of First Northwest Bancorp shares are held by institutional investors. 5.8% of Eagle Bancorp Montana shares are held by insiders. Comparatively, 4.1% of First Northwest Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Eagle Bancorp Montana and First Northwest Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eagle Bancorp Montana	12.57%	8.36%	0.76%
First Northwest Bancorp	1.32%	0.96%	0.07%

Summary

Eagle Bancorp Montana beats First Northwest Bancorp on 10 of the 15 factors compared between the two stocks.

About Eagle Bancorp Montana

Eagle Bancorp Montana, Inc. operates as the bank holding company for Opportunity Bank of Montana that provides various retail banking products and services to small businesses and individuals in Montana. It accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposit accounts. The company also provides 1-4 family residential mortgage loans, such as residential mortgages and construction of residential properties; commercial real estate loans, including multi-family dwellings, nonresidential property, commercial construction and development, and farmland loans; and second mortgage/home equity loans. In addition, it offers consumer loans, such as loans secured by collateral other than real estate, such as automobiles, recreational vehicles, and boats; personal loans and lines of credit; commercial business loans consisting of business loans and lines of credit on a secured and unsecured basis; construction loans; agricultural loans; and mortgage loan services. The company operates full-service branches and automated teller machines. Eagle Bancorp Montana, Inc. was founded in 1922 and is headquartered in Helena, Montana.

About First Northwest Bancorp

First Northwest Bancorp operates as a bank holding company for First Fed Bank that provides commercial and consumer banking services to individuals, businesses, and nonprofit organizations in western Washington, the United States. The company accepts various deposit instruments, including checking, money market deposit, savings, and transaction accounts, as well as certificates of deposit. It also originates one- to four-family mortgage loans, commercial and multi-family real estate loans, construction and land loans, and commercial business loans, as well as consumer loans primarily consisting of automobile loans, and home-equity loans and lines of credit. First Northwest Bancorp operates branch offices in Clallam, Jefferson, King, Kitsap, and Whatcom Counties, Washington. First Northwest Bancorp was founded in 1923 and is based in Port Angeles, Washington.