The competitive landscape of small-cap finance companies features two notable entities: Greystone Housing Impact Investors and Finward Bancorp. This analysis examines their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations, and dividends to determine which company holds a superior position.
Volatility and Risk Assessment
In terms of volatility, Greystone Housing Impact Investors has a beta of 0.57, indicating its share price is 43% less volatile than the S&P 500 index. In contrast, Finward Bancorp exhibits an even lower beta of 0.31, suggesting its share price is 69% less volatile than the benchmark. This lower volatility may appeal to risk-averse investors seeking stability.
Ownership and Institutional Backing
Ownership structures reveal a significant distinction between the two companies. Approximately 9.0% of Greystone Housing Impact Investors shares are held by institutional investors, while Finward Bancorp has a more substantial institutional ownership figure of 26.6%. Insider ownership also varies, with 1.8% of Greystone’s shares owned by company insiders compared to 13.1% for Finward. Strong institutional backing suggests a belief in long-term growth potential, particularly for Finward Bancorp.
Analysts currently favor Greystone Housing Impact Investors with a consensus target price of $13.00, indicating a potential upside of 62.40%. Conversely, Finward Bancorp’s consensus target price is $34.00, reflecting a potential downside of 5.32%. This disparity in analyst recommendations positions Greystone as the more favorable option among analysts.
Dividend Comparison
When considering dividends, Greystone Housing Impact Investors offers an annual dividend of $1.00 per share, resulting in a substantial dividend yield of 12.5%. In contrast, Finward Bancorp pays an annual dividend of $0.48 per share, yielding 1.3%. Notably, Greystone’s dividend payout ratio stands at an alarming 555.6%, suggesting potential sustainability issues in the future. Finward Bancorp, however, has a more manageable payout ratio of 25.1%. Despite this, Greystone has successfully increased its dividend for four consecutive years, highlighting its commitment to returning value to shareholders.
Earnings and Valuation Insights
An examination of earnings and valuation metrics shows that Greystone Housing Impact Investors generates higher earnings, albeit with lower revenue compared to Finward Bancorp. The latter trades at a lower price-to-earnings ratio, indicating it may be a more affordable investment option at present.
Profitability metrics further differentiate the two companies, with Greystone outperforming Finward in certain areas. Overall, Greystone Housing Impact Investors excels in 12 of the 17 comparison factors evaluated, indicating a strong competitive edge.
Company Overviews
Founded in 1998 and headquartered in Omaha, Nebraska, Greystone Housing Impact Investors LP specializes in acquiring and managing a portfolio of mortgage revenue bonds (MRBs). These bonds finance multifamily, student, and senior housing projects, as well as skilled nursing and commercial properties across the United States. The company operates in four segments, including Affordable Multifamily MRB Investments and Seniors and Skilled Nursing MRB Investments. The company rebranded from America First Multifamily Investors, L.P. to its current name in December 2022.
On the other hand, Finward Bancorp, established in 1916 and based in Munster, Indiana, serves as the holding company for Peoples Bank. The bank provides a wide range of financial products, including various deposit accounts, residential and commercial loans, and investment services. The company was previously known as NorthWest Indiana Bancorp before its name change in May 2021.
In summary, while both Greystone Housing Impact Investors and Finward Bancorp offer unique strengths, Greystone appears to have a more favorable outlook based on several key financial indicators. Investors should carefully consider these factors as they evaluate potential investment opportunities in the small-cap finance sector.
