Contrasting AMB Financial (OTCMKTS:AMFC) and Finward Bancorp (NASDAQ:FNWD)

Finward Bancorp (NASDAQ:FNWD) and AMB Financial (OTCMKTS:AMFC) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations for Finward Bancorp and AMB Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Finward Bancorp	0	0	1	0	3.00
AMB Financial	0	0	0	0	0.00

Finward Bancorp presently has a consensus target price of $31.00, suggesting a potential upside of 9.46%. Given Finward Bancorp’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Finward Bancorp is more favorable than AMB Financial.

Dividends

Finward Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 1.7%. AMB Financial pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. Finward Bancorp pays out 17.8% of its earnings in the form of a dividend.

Institutional and Insider Ownership

26.6% of Finward Bancorp shares are held by institutional investors. Comparatively, 1.2% of AMB Financial shares are held by institutional investors. 13.7% of Finward Bancorp shares are held by insiders. Comparatively, 37.7% of AMB Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Finward Bancorp and AMB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Finward Bancorp	10.44%	7.60%	0.55%
AMB Financial	N/A	N/A	N/A

Valuation & Earnings

This table compares Finward Bancorp and AMB Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Finward Bancorp	$70.21 million	1.74	$8.38 million	$2.69	10.53
AMB Financial	$18.97 million	0.97	$2.19 million	N/A	N/A

Finward Bancorp has higher revenue and earnings than AMB Financial.

Volatility and Risk

Finward Bancorp has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, AMB Financial has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.

Summary

Finward Bancorp beats AMB Financial on 12 of the 14 factors compared between the two stocks.

About Finward Bancorp

Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services. The company’s deposit products include non-interest- and interest-bearing demand accounts, savings accounts, money market deposit accounts, certificate accounts, and retirement savings plans. Its loan products portfolio comprises residential mortgage loans that enable borrowers to purchase existing homes, refinance existing homes, or construct new homes; construction loans primarily to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household, or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities. The company also offers estate and retirement planning, custodial services, guardianships, IRA accounts, and investment agency accounts, as well as serves as the personal representative of estates, and acts as trustee for revocable and irrevocable trusts. In addition, it provides insurance and annuity investments to wealth management customers; holds real estate properties; and operates as a real estate investment trust. The company was formerly known as NorthWest Indiana Bancorp and changed its name to Finward Bancorp in May 2021. Finward Bancorp was founded in 1916 and is headquartered in Munster, Indiana.

About AMB Financial

AMB Financial Corp. operates as the bank holding company for American Community Bank of Indiana that provides financial services to customers in Indiana. The company provides savings, checking, health savings, individual retirement, and money market deposit accounts, as well as certificates of deposit. It offers business checking accounts, business debit and credit cards, and order business checks. In addition, the company offers mortgage loans, home equity loans, construction/lot loans, community loans, vehicle loans, and loan servicing; and commercial loans, commercial real estate loans, and SBA loans. Further, it provides merchant, remote deposit, wire services, fraud protection, and ACH origination; sweep services, zero balance accounts, lockbox services, vault services, and wealth management services; online, mobile, voice, and banking services; money order and e-statement services; cashier’s checks; and safe deposit boxes. The company was founded in 1910 and is headquartered in Saint John, Indiana.