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

Valuation & Earnings

This table compares BankFinancial and Gouverneur Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BankFinancial $62.59 million 4.01 $9.00 million $0.63 23.41
Gouverneur Bancorp N/A N/A N/A N/A N/A

BankFinancial has higher revenue and earnings than Gouverneur Bancorp.

Volatility & Risk

BankFinancial has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Gouverneur Bancorp has a beta of -0.34, indicating that its share price is 134% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for BankFinancial and Gouverneur Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BankFinancial 0 0 1 0 3.00
Gouverneur Bancorp 0 0 0 0 N/A

Institutional and Insider Ownership

65.7% of BankFinancial shares are owned by institutional investors. 15.2% of BankFinancial shares are owned by company insiders. Comparatively, 9.7% of Gouverneur Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares BankFinancial and Gouverneur Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BankFinancial 18.99% 7.88% 0.98%
Gouverneur Bancorp N/A N/A N/A

Dividends

BankFinancial pays an annual dividend of $0.40 per share and has a dividend yield of 2.7%. Gouverneur Bancorp pays an annual dividend of $0.34 per share and has a dividend yield of 2.2%. BankFinancial pays out 63.5% of its earnings in the form of a dividend. BankFinancial has raised its dividend for 4 consecutive years. BankFinancial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

BankFinancial beats Gouverneur Bancorp on 10 of the 11 factors compared between the two stocks.

About BankFinancial

BankFinancial Corporation operates as the holding company for BankFinancial, National Association that provides commercial, family, and personal banking products and services in Illinois. The company accepts various deposit products, such as savings, NOW, checking, money market, IRA, and other retirement accounts, as well as certificates of deposit. It also offers multi-family and nonresidential real estate, construction and land, and commercial loans, as well as commercial leases; consumer loans; and one-to-four family residential mortgage loans, including home equity loans and lines of credit. In addition, the company provides various financial products and services, such as cash management, fund transfer, bill payment and other online and mobile banking transactions, automated teller machines, safe deposit boxes, trust, wealth management, and general insurance agency. Further, it offers financial planning services; and sells property and casualty, and other insurance products on an agency basis. It operates 19 full-service banking offices located in Cook, DuPage, Lake, and Will Counties. BankFinancial Corporation was founded in 1924 and is headquartered in Burr Ridge, Illinois.

About Gouverneur Bancorp

Gouverneur Bancorp, Inc. operates as the holding company for Gouverneur Savings and Loan Association that provides banking services to individuals and businesses in New York. The company's deposit products include passbook savings accounts, NOW accounts, money market deposit accounts, checking accounts, and certificates of deposit. Its loan portfolio comprises residential mortgage loans, commercial mortgage loans, consumer loans, automobile loans, non-real estate commercial loans; and commercial and non-mortgage loans to local businesses for working capital, machinery and equipment purchases, expansion, and other business purposes. The company also invests in general obligation municipal bonds and debt securities issued by the United States government and its agencies; and mortgage-backed securities issued or guaranteed by government-sponsored enterprises. It serves primarily the southern St. Lawrence County, and northern Jefferson and Lewis counties in New York State through two full-service branch offices. The company was founded in 1892 and is based in Gouverneur, New York. Gouverneur Bancorp, Inc operates as a subsidiary of Cambray Mutual Holding Company.

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