Critical Review: Broadway Financial (NASDAQ:BYFC) vs. Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK)

Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK) and Broadway Financial (NASDAQ:BYFC) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Institutional and Insider Ownership

65.5% of Northfield Bancorp, Inc. (Staten Island, NY) shares are owned by institutional investors. Comparatively, 12.1% of Broadway Financial shares are owned by institutional investors. 6.5% of Northfield Bancorp, Inc. (Staten Island, NY) shares are owned by insiders. Comparatively, 4.7% of Broadway Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Northfield Bancorp, Inc. (Staten Island, NY) and Broadway Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northfield Bancorp, Inc. (Staten Island, NY)	10.94%	4.05%	0.49%
Broadway Financial	5.01%	2.43%	0.24%

Analyst Ratings

This is a breakdown of current recommendations for Northfield Bancorp, Inc. (Staten Island, NY) and Broadway Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northfield Bancorp, Inc. (Staten Island, NY)	0	2	0	0	2.00
Broadway Financial	0	0	0	0	0.00

Northfield Bancorp, Inc. (Staten Island, NY) presently has a consensus price target of $11.13, suggesting a potential downside of 16.85%. Given Northfield Bancorp, Inc. (Staten Island, NY)’s stronger consensus rating and higher possible upside, research analysts plainly believe Northfield Bancorp, Inc. (Staten Island, NY) is more favorable than Broadway Financial.

Risk and Volatility

Northfield Bancorp, Inc. (Staten Island, NY) has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Broadway Financial has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Valuation and Earnings

This table compares Northfield Bancorp, Inc. (Staten Island, NY) and Broadway Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northfield Bancorp, Inc. (Staten Island, NY)	$127.16 million	4.51	$37.67 million	$0.64	20.91
Broadway Financial	$36.39 million	1.76	$4.51 million	$0.29	24.28

Northfield Bancorp, Inc. (Staten Island, NY) has higher revenue and earnings than Broadway Financial. Northfield Bancorp, Inc. (Staten Island, NY) is trading at a lower price-to-earnings ratio than Broadway Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Northfield Bancorp, Inc. (Staten Island, NY) beats Broadway Financial on 12 of the 13 factors compared between the two stocks.

About Northfield Bancorp, Inc. (Staten Island, NY)

Northfield Bancorp, Inc. (Staten Island, NY) operates as the bank holding company for Northfield Bank that provides various banking products and services primarily to individuals and corporate customers. It accepts various deposits products, including certificates of deposit, passbook, statement, and money market savings accounts; transaction deposit accounts comprising negotiable orders of withdrawal accounts, and interest and non-interest-bearing checking accounts; and brokered deposits. The company also offers various loans comprising multifamily and other commercial real estate loans, construction and land loans, commercial and industrial loans, one-to-four family residential real estate loans, and home equity loans and lines of credit. In addition, it purchases various investment securities, such as mortgage-backed securities and corporate bonds; and deposits funds in other financial institutions, as well as holds mortgage loans, mortgage-backed securities, and other investments. Further, the company provides automated teller machines; telephone, internet, and mobile banking services; and ACH and wire transfers, cash management, positive pay, and remote deposit capture services. It operates full-service banking offices in Staten Island and Brooklyn, New York; and Hunterdon, Middlesex, Mercer, and Union counties, New Jersey. Northfield Bancorp, Inc. (Staten Island, NY) was founded in 1887 and is headquartered in Woodbridge, New Jersey.

About Broadway Financial

Broadway Financial Corporation operates as the holding company for City First Bank, National Association that provides various banking products and services in the United States. It accepts various deposit accounts, including savings accounts, checking accounts, interest checking accounts, money market accounts, and fixed-term certificates of deposit. The company also offers mortgage loans, which are secured by multi-family residential properties; single family residential properties; and commercial real estate, including charter schools, community facilities, and churches, as well as commercial business, construction, and consumer loans. In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments. The company was founded in 1946 and is headquartered in Los Angeles, California.