Reviewing BM Technologies (NYSE:BMTX) and Northeast Bank (NASDAQ:NBN)

BM Technologies (NYSE:BMTX) and Northeast Bank (NASDAQ:NBN) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.

Volatility and Risk

BM Technologies has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500. Comparatively, Northeast Bank has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Insider and Institutional Ownership

20.2% of BM Technologies shares are owned by institutional investors. 8.4% of BM Technologies shares are owned by insiders. Comparatively, 14.2% of Northeast Bank shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for BM Technologies and Northeast Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BM Technologies	0	2	2	0	2.50
Northeast Bank	0	0	1	0	3.00

BM Technologies presently has a consensus target price of $6.70, suggesting a potential upside of 41.35%. Northeast Bank has a consensus target price of $80.00, suggesting a potential downside of 21.81%. Given BM Technologies’ higher probable upside, equities analysts plainly believe BM Technologies is more favorable than Northeast Bank.

Profitability

This table compares BM Technologies and Northeast Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BM Technologies	-20.57%	-39.27%	-23.45%
Northeast Bank	21.94%	N/A	N/A

Earnings and Valuation

This table compares BM Technologies and Northeast Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BM Technologies	$55.25 million	1.04	-$17.33 million	($1.03)	-4.60
Northeast Bank	$151.20 million	N/A	$58.23 million	$7.70	13.29

Northeast Bank has higher revenue and earnings than BM Technologies. BM Technologies is trading at a lower price-to-earnings ratio than Northeast Bank, indicating that it is currently the more affordable of the two stocks.

Summary

Northeast Bank beats BM Technologies on 9 of the 12 factors compared between the two stocks.

About BM Technologies

BM Technologies, Inc., a financial technology company, facilitates deposits and banking services between a customer and its partner banks in the United States. It offers digital banking and disbursement services to consumers and students through a full service fintech banking platform. The company was formerly known as BankMobile Technologies, Inc. and changed its name to BM Technologies, Inc. in January 2021. BM Technologies, Inc. was founded in 2015 and is headquartered in Wayne, Pennsylvania.

About Northeast Bank

Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. Further, it provides various services, such as money market, merchant, and payroll and HR. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.