Norwood Financial (NASDAQ:NWFL – Get Free Report) and Malaga Financial (OTCMKTS:MLGF – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.
Profitability
This table compares Norwood Financial and Malaga Financial’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Norwood Financial | 11.52% | 7.40% | 0.59% |
Malaga Financial | N/A | N/A | N/A |
Institutional & Insider Ownership
28.1% of Norwood Financial shares are held by institutional investors. Comparatively, 1.1% of Malaga Financial shares are held by institutional investors. 9.1% of Norwood Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Dividends
Risk & Volatility
Norwood Financial has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Malaga Financial has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.
Earnings & Valuation
This table compares Norwood Financial and Malaga Financial”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Norwood Financial | $68.61 million | 3.33 | $16.76 million | $1.91 | 14.78 |
Malaga Financial | N/A | N/A | $22.98 million | $2.59 | 8.82 |
Malaga Financial has lower revenue, but higher earnings than Norwood Financial. Malaga Financial is trading at a lower price-to-earnings ratio than Norwood Financial, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for Norwood Financial and Malaga Financial, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Norwood Financial | 0 | 0 | 0 | 0 | N/A |
Malaga Financial | 0 | 0 | 0 | 0 | N/A |
Summary
Norwood Financial beats Malaga Financial on 9 of the 13 factors compared between the two stocks.
About Norwood Financial
Norwood Financial Corp. operates as the bank holding company for Wayne Bank that provides various banking products and services. The company accepts a range of deposit products, including interest-bearing and non-interest-bearing transaction accounts, and statement savings and money market accounts, as well as certificate of deposits. It also provides commercial loans comprising lines of credit, revolving credit, term loans, mortgages, secured lending products, and letter of credit facilities; municipal finance lending; construction loans for commercial construction projects and single-family residences; land loans; construction financing; consumer loans; mortgage lending to finance principal residences and second home dwellings; and indirect dealer financing of new and used automobiles, boats, and recreational vehicles. In addition, the company offers investment securities services; personal and business credit services; trust and investment products; and cash management, direct deposit, remote deposit capture, mobile deposit capture, automated clearing house activity, real estate settlement, and Internet and mobile banking services. Further, it engages in the annuity and mutual fund sale, and discount brokerage activities, as well as insurance agency business. The company serves consumers, businesses, nonprofit organizations, and municipalities. It operates branches in Northeastern Pennsylvania; and in Delaware, Sullivan, Ontario, Otsego, and Yates Counties, New York, as well as automated teller machines. Norwood Financial Corp. was founded in 1870 and is headquartered in Honesdale, Pennsylvania.
About Malaga Financial
Malaga Financial Corporation operates as the holding company for Malaga Bank that provides various community banking products and services to personal and business customers. It offers checking, savings, NOW, and money market accounts, certificates of deposits, business banking, consumer, and demand deposits. The company also provides commercial real estate, single and multi-family residential mortgage, consumer, 14-unit investment property, construction, personal, and business loans; home equity lines of credit; and certificates of deposit. In addition, it offers coupon redemption, direct deposit, overdraft lines of credit, telephone transfers, U.S. savings bond redemption, and wire transfer services; and ATM and VISA debit cards, bank by mail, medallion signature guarantee, night depository, notary, safe deposit boxes, and trust deed note collection services. Further, the company provides online banking services, including bill payer, e-statements, and mobile banking services. The company was incorporated in 2002 and is headquartered in Palos Verdes Estates, California.
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