Critical Survey: Bancorp 34 (OTCMKTS:BCTF) and Broadway Financial (NASDAQ:BYFC)

Insider and Institutional Ownership

12.1% of Broadway Financial shares are owned by institutional investors. Comparatively, 6.5% of Bancorp 34 shares are owned by institutional investors. 4.7% of Broadway Financial shares are owned by insiders. Comparatively, 7.4% of Bancorp 34 shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Broadway Financial and Bancorp 34″s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadway Financial	$52.58 million	1.38	$4.51 million	$0.29	27.52
Bancorp 34	$28.85 million	2.98	-$3.40 million	($0.28)	-46.43

Broadway Financial has higher revenue and earnings than Bancorp 34. Bancorp 34 is trading at a lower price-to-earnings ratio than Broadway Financial, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Broadway Financial has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Bancorp 34 has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500.

Profitability

This table compares Broadway Financial and Bancorp 34’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Broadway Financial	5.01%	2.43%	0.24%
Bancorp 34	-0.27%	-0.17%	-0.02%

Summary

Broadway Financial beats Bancorp 34 on 9 of the 11 factors compared between the two stocks.

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.

About Bancorp 34

Bancorp 34, Inc. operates as the holding company for Bank 34 that offers various banking products and services to individuals and businesses in the United States. It accepts various deposit products, such as savings accounts, checking accounts, money market accounts, demand and time deposits, NOW accounts, and individual retirement accounts, as well as certificates of deposit. The company also provides term, working capital, construction, USDA, small business administration, equipment, assisted living and skilled nursing, renewable energy and solar equipment, and commercial real estate loans; and small to medium size business and business acquisitions financing; lines of credit; multi-family finance; and employee stock ownership plans, HOA lending, and investor pools of single family rentals. In addition, it offers credit and debit cards; safe deposit boxes; treasury management products; and merchant card processing, cash management, e-banking, mobile and online banking, bill payment, and merchant capture services. The company operates through its network of full-service branches in Scottsdale and Arizona, as well as Alamogordo and Las Cruces, New Mexico. Bancorp 34, Inc. was founded in 1934 and is headquartered in Scottsdale, Arizona.