AMB Financial (OTCMKTS:AMFC – Get Rating) and Flagstar Bancorp (NYSE:FBC – Get Rating) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.
Analyst Ratings
This is a breakdown of recent ratings and target prices for AMB Financial and Flagstar Bancorp, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
AMB Financial | 0 | 0 | 0 | 0 | N/A |
Flagstar Bancorp | 0 | 1 | 1 | 0 | 2.50 |
Flagstar Bancorp has a consensus target price of $54.00, suggesting a potential upside of 51.77%. Given Flagstar Bancorp’s higher probable upside, analysts clearly believe Flagstar Bancorp is more favorable than AMB Financial.
Volatility & Risk
AMB Financial has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500. Comparatively, Flagstar Bancorp has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.
Institutional and Insider Ownership
2.8% of AMB Financial shares are held by institutional investors. Comparatively, 92.8% of Flagstar Bancorp shares are held by institutional investors. 37.7% of AMB Financial shares are held by company insiders. Comparatively, 2.6% of Flagstar Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Dividends
AMB Financial pays an annual dividend of $0.05 per share and has a dividend yield of 0.2%. Flagstar Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Flagstar Bancorp pays out 2.9% of its earnings in the form of a dividend. Flagstar Bancorp has increased its dividend for 2 consecutive years. Flagstar Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares AMB Financial and Flagstar Bancorp’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
AMB Financial | N/A | N/A | N/A |
Flagstar Bancorp | 26.33% | 16.92% | 1.74% |
Earnings & Valuation
This table compares AMB Financial and Flagstar Bancorp’s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
AMB Financial | N/A | N/A | N/A | N/A | N/A |
Flagstar Bancorp | $1.85 billion | 1.02 | $533.00 million | $8.16 | 4.36 |
Flagstar Bancorp has higher revenue and earnings than AMB Financial.
Summary
Flagstar Bancorp beats AMB Financial on 10 of the 12 factors compared between the two stocks.
AMB Financial Company Profile (Get Rating)
AMB Financial Corp. operates as the bank holding company for American Community Bank of Indiana that provides financial services to customers primarily located within northwest Indiana. It accepts savings, checking, individual retirement, and money market deposit accounts; and certificates of deposit. The company also offers mortgage loans; construction loans; lot loans; home equity line of credit and loans; and vehicle loans for motorcycles, wave runners, snowmobiles, motor homes, campers/travel trailers, and boats and boat trailers. In addition, it provides merchant, remote deposit, receivables financing, and ACH banking services; online, mobile, voice, and youth banking services; investment, estate, business, and personal financial planning services; debit/ATM and credit cards; money order and e-statement services; cashier’s checks; health savings account; and safe deposit boxes. The company provides its products and services through its main office in Indiana, as well as through its four full-service banking offices located in Munster, Dyer, Hammond, and Crown Point, Indiana. AMB Financial Corp. was founded in 1910 and is headquartered in Saint John, Indiana.
Flagstar Bancorp Company Profile (Get Rating)
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