Critical Review: NB Bancorp (NBBK) & The Competition

NB Bancorp (NASDAQ:NBBK) is one of 43 public companies in the “Savings institutions, except federal” industry, but how does it contrast to its peers? We will compare NB Bancorp to similar businesses based on the strength of its dividends, institutional ownership, analyst recommendations, valuation, earnings, risk and profitability.

Institutional and Insider Ownership

44.7% of shares of all “Savings institutions, except federal” companies are owned by institutional investors. 1.7% of NB Bancorp shares are owned by company insiders. Comparatively, 8.4% of shares of all “Savings institutions, except federal” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for NB Bancorp and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NB Bancorp	0	0	1	0	3.00
NB Bancorp Competitors	131	610	378	7	2.23

NB Bancorp currently has a consensus price target of $22.00, indicating a potential upside of 15.49%. As a group, “Savings institutions, except federal” companies have a potential upside of 5.39%. Given NB Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe NB Bancorp is more favorable than its peers.

Profitability

This table compares NB Bancorp and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NB Bancorp	13.86%	6.04%	0.93%
NB Bancorp Competitors	8.04%	4.89%	0.57%

Valuation and Earnings

This table compares NB Bancorp and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
NB Bancorp	$304.05 million	$9.82 million	17.80
NB Bancorp Competitors	$539.76 million	$13.08 million	2.22

NB Bancorp’s peers have higher revenue and earnings than NB Bancorp. NB Bancorp is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

NB Bancorp beats its peers on 7 of the 12 factors compared.

NB Bancorp Company Profile

NB Bancorp, Inc. focuses on operating as a bank holding company for Needham Bank that provides various banking products and services in Greater Boston metropolitan area and surrounding communities in Massachusetts, eastern Connecticut, southern New Hampshire, and Rhode Island. The company offers various deposits, including certificate of deposit, individual retirement, money market, savings, NOW, demand deposit, and interest-bearing and noninterest-bearing checking accounts; and commercial real estate and multifamily, one- to four-family residential real estate, construction and land development, commercial and industrial, and consumer loans, as well as home equity loans and lines of credit. It also invests in securities consisting of U.S. treasury and federal agency securities, government-sponsored residential mortgage-backed securities, municipal bonds, and corporate bonds. The company was founded in 1892 and is based in Needham, Massachusetts.