Financial investigation of NBT Bancorp (NASDAQ:NBTB) and Northwest Bancshares (NASDAQ:NWBI)


NBT Bancorp (NASDAQ: NBTBGet a rating) and Northwest Bancshares (NASDAQ: NWBIGet a rating) are both small cap finance companies, but which stock is better? We’ll compare the two companies based on their dividend strength, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of NBT Bancorp and Northwest Bancshares.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
NBT Bancorp $497.67 million 3.11 $154.88 million $3.54 10:15 a.m.
North West Bank $561.40 million 2.79 $154.32 million $1.11 11.13

NBT Bancorp has higher earnings, but lower earnings than Northwest Bancshares. NBT Bancorp trades at a lower price-to-earnings ratio than Northwest Bancshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on assets of NBT Bancorp and Northwest Bancshares.

Net margins Return on equity return on assets
NBT Bancorp 30.64% 12.66% 1.30%
North West Bank 26.19% 9.12% 0.99%

Institutional and Insider Ownership

55.7% of NBT Bancorp shares are held by institutional investors. By comparison, 61.2% of Northwest Bancshares shares are held by institutional investors. 3.6% of NBT Bancorp shares are held by insiders. By comparison, 1.0% of Northwest Bancshares shares are held by insiders. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company is poised for long-term growth.

Dividends

NBT Bancorp pays an annual dividend of $1.12 per share and has a dividend yield of 3.1%. Northwest Bancshares pays an annual dividend of $0.80 per share and has a dividend yield of 6.5%. NBT Bancorp pays 31.6% of its profits as a dividend. Northwest Bancshares pays 72.1% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. NBT Bancorp has increased its dividend for 1 consecutive year and Northwest Bancshares has increased its dividend for 13 consecutive years. Northwest Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

NBT Bancorp has a beta of 0.58, meaning its stock price is 42% less volatile than the S&P 500. By comparison, Northwest Bancshares has a beta of 0.56, meaning its stock price is 44% less volatile than the S&P 500.

Analyst Notes

This is a breakdown of the current recommendations for NBT Bancorp and Northwest Bancshares, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
NBT Bancorp 0 1 1 0 2.50
North West Bank 1 3 0 0 1.75

NBT Bancorp currently has a consensus target price of $40.00, indicating a potential upside of 11.33%. Northwest Bancshares has a consensus target price of $13.01, indicating a potential upside of 5.32%. Given NBT Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe that NBT Bancorp is more favorable than Northwest Bancshares.

Summary

NBT Bancorp beats Northwest Bancshares on 12 out of 17 factors compared between the two stocks.

NBT Bancorp Company Profile (Get a rating)

NBT Bancorp Inc., a financial holding company, provides commercial banking, retail banking and wealth management services. Its deposit products include demand deposits, savings, negotiable withdrawal orders, money market deposits and certificates of deposit accounts. The Company’s loan portfolio includes commercial and industrial, commercial real estate, agricultural and commercial construction loans; indirect and direct consumers, home equity, mortgages, business bank loans and commercial loans; and residential real estate loans. It also provides fiduciary and investment services; financial planning and life insurance services; and consulting and record keeping services relating to pension plans. In addition, the Company offers insurance products covering property and personal accident, commercial liability and commercial insurance, as well as other products and services through online, mobile and 24-hour telephone channels. 24 that allow customers to check balances, make deposits, transfer funds, pay bills, access statements, apply for loans and access various other products and services. As of December 31, 2021, it had 140 branches and 164 ATMs in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Connecticut and Maine. NBT Bancorp Inc. was founded in 1856 and is headquartered in Norwich, New York.

Northwest Bancshares Company Profile (Get a rating)

Northwest Bancshares LogoNorthwest Bancshares, Inc. operates as the holding company of Northwest Bank, a state-chartered savings bank that provides personal and business banking solutions. The company accepts a variety of deposits, including checks, savings, money market deposits, term certificates, and individual retirement accounts. It also offers lending products including one to four-family residential real estate loans and loans secured by multi-family residential and commercial real estate; commercial business loans; and consumer loans, including auto loans, sales financing loans, unsecured personal loans, credit card loans and loans secured by deposit accounts. The company also offers investment management and trust services. As of December 31, 2021, it operated 170 community banking locations in Pennsylvania, Western New York, Eastern Ohio and Indiana. Northwest Bancshares, Inc. was founded in 1896 and is headquartered in Columbus, Ohio.



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