Analyzing Eagle Bancorp Montana (NASDAQ:EBMT) and OFG Bancorp (NYSE:OFG)

OFG Bancorp (NYSE:OFG) and Eagle Bancorp Montana (NASDAQ:EBMT) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations for OFG Bancorp and Eagle Bancorp Montana, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OFG Bancorp	0	5	2	0	2.29
Eagle Bancorp Montana	0	3	1	0	2.25

OFG Bancorp currently has a consensus price target of $56.50, suggesting a potential upside of 12.98%. Eagle Bancorp Montana has a consensus price target of $23.50, suggesting a potential upside of 10.80%. Given OFG Bancorp’s stronger consensus rating and higher possible upside, equities analysts plainly believe OFG Bancorp is more favorable than Eagle Bancorp Montana.

Risk and Volatility

OFG Bancorp has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Eagle Bancorp Montana has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.

Dividends

OFG Bancorp pays an annual dividend of $1.40 per share and has a dividend yield of 2.8%. Eagle Bancorp Montana pays an annual dividend of $0.59 per share and has a dividend yield of 2.8%. OFG Bancorp pays out 26.7% of its earnings in the form of a dividend. Eagle Bancorp Montana pays out 30.1% 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. OFG Bancorp has raised its dividend for 5 consecutive years and Eagle Bancorp Montana has raised its dividend for 14 consecutive years. OFG Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OFG Bancorp	24.64%	16.38%	1.85%
Eagle Bancorp Montana	12.03%	7.96%	0.73%

Insider & Institutional Ownership

92.7% of OFG Bancorp shares are held by institutional investors. Comparatively, 35.7% of Eagle Bancorp Montana shares are held by institutional investors. 1.2% of OFG Bancorp shares are held by company insiders. Comparatively, 5.8% of Eagle Bancorp Montana shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares OFG Bancorp and Eagle Bancorp Montana”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OFG Bancorp	$902.28 million	2.34	$205.10 million	$5.25	9.53
Eagle Bancorp Montana	$127.08 million	1.33	$14.84 million	$1.96	10.82

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

Summary

OFG Bancorp beats Eagle Bancorp Montana on 14 of the 17 factors compared between the two stocks.

About OFG Bancorp

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, and individual retirement accounts; certificate of deposits, as well as time deposit products; commercial, consumer, auto leasing, and mortgage lending services; credit cards; cash management; financial planning and insurance services; and corporate and individual trust, and retirement services. In addition, it 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. Further, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; and various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments. Additionally, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company provides investment brokerage, transactional, international trade financing, residential mortgage, and consumer finance services. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.

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.