Finward Bancorp (NASDAQ:FNWD) and Coastal Financial (NASDAQ:CCB) Financial Contrast

Finward Bancorp (NASDAQ:FNWD) and Coastal Financial (NASDAQ:CCB) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Risk and Volatility

Finward Bancorp has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500. Comparatively, Coastal Financial has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Profitability

This table compares Finward Bancorp and Coastal Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Finward Bancorp	9.65%	5.68%	0.48%
Coastal Financial	-0.53%	-0.80%	-0.08%

Valuation and Earnings

This table compares Finward Bancorp and Coastal Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Finward Bancorp	$101.06 million	1.87	$8.09 million	$2.27	19.19
Coastal Financial	$661.22 million	1.05	$46.99 million	($0.28)	-161.50

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Finward Bancorp and Coastal Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Finward Bancorp	0	1	2	0	2.67
Coastal Financial	2	0	5	0	2.43

Finward Bancorp presently has a consensus price target of $41.00, indicating a potential downside of 5.88%. Coastal Financial has a consensus price target of $91.33, indicating a potential upside of 101.98%. Given Coastal Financial’s higher possible upside, analysts plainly believe Coastal Financial is more favorable than Finward Bancorp.

Insider & Institutional Ownership

26.6% of Finward Bancorp shares are held by institutional investors. Comparatively, 59.2% of Coastal Financial shares are held by institutional investors. 13.1% of Finward Bancorp shares are held by company insiders. Comparatively, 13.5% of Coastal Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

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 Coastal Financial

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company also offers commercial and industrial loans, such as term loans, commercial lines of credit, capital call lines working capital loans, equipment financing, borrowing base loans, small business administration loans, and other loan products; owner and non-owner-occupied real estate loans, and multi-family residential loans; construction, land, and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as personal lines of credit, including overdraft protection. In addition, it provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services; and debit cards. Further, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as Banking as a Service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their customers banking services. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.