Financial institutions (NASDAQ: FISI – Get a rating) and Dime Community Bancshares (NASDAQ: DCOM – Get a rating) are both small cap finance companies, but which is the better investment? We’ll compare the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Volatility and risk
Financial Institutions has a beta of 1.06, meaning its stock price is 6% more volatile than the S&P 500. In comparison, Dime Community Bancshares has a beta of 1.07, meaning its stock price is 7 % more volatile than the S&P 500.
Profitability
This table compares the net margins, return on equity and return on assets of Financial Institutions and Dime Community Bancshares.
| Net margins | Return on equity | return on assets | |
| Financial institutions | 36.29% | 16.50% | 1.43% |
| Dime Community Bancshares | 24.37% | 14.31% | 1.23% |
Analyst Recommendations
This is a summary of current recommendations and price targets for financial institutions and Dime Community Bancshares, as reported by MarketBeat.com.
| Sales Ratings | Hold odds | Buy reviews | Strong buy odds | Rating | |
| Financial institutions | 0 | 0 | 0 | 0 | N / A |
| Dime Community Bancshares | 0 | 0 | 1 | 0 | 3.00 |
Dime Community Bancshares has a consensus price target of $38.50, indicating a potential upside of 10.92%. Given the likely higher upside of Dime Community Bancshares, analysts clearly believe that Dime Community Bancshares is more favorable than financial institutions.
Institutional and Insider Ownership
68.5% of the shares of financial institutions are held by institutional investors. By comparison, 71.8% of Dime Community Bancshares shares are held by institutional investors. 2.0% of the shares of financial institutions are held by insiders of the company. Comparatively, 16.4% of Dime Community Bancshares shares are held by insiders of the company. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock will outperform the market over the long term.
Dividends
Financial Institutions pays an annual dividend of $1.16 per share and has a dividend yield of 4.0%. Dime Community Bancshares pays an annual dividend of $0.96 per share and has a dividend yield of 2.8%. Financial institutions pay out 24.3% of their profits in the form of dividends. Dime Community Bancshares pays 42.7% of its profits in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Financial Institutions increased its dividend for 13 consecutive years and Dime Community Bancshares increased its dividend for 1 consecutive year. Financial institutions are clearly the best dividend-paying stocks, given their higher yield and longer track record of dividend growth.
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of Financial Institutions and Dime Community Bancshares.
| Gross revenue | Price/sales ratio | Net revenue | Earnings per share | Price/earnings ratio | |
| Financial institutions | $214.11 million | 2.12 | $77.70 million | $4.78 | 6.12 |
| Dime Community Bancshares | $426.69 million | 3.23 | $104.00 million | $2.25 | 3:43 p.m. |
Dime Community Bancshares has higher revenue and profits than financial institutions. Financial Institutions trades at a lower price-to-earnings ratio than Dime Community Bancshares, indicating that it is currently the more affordable of the two stocks.
Summary
Dime Community Bancshares beat financial institutions on 9 out of 16 factors compared between the two stocks.
About financial institutions (Get a rating)
Financial Institutions, Inc. operates as a holding company for Five Star Bank, a chartered bank that provides banking and financial services to individuals, municipalities, and businesses in New York City. The company offers checking and savings account programs, including money market accounts, certificates of deposit, sweeping investment and individual retirement accounts and other qualified plan accounts. Its lending products include term loans and lines of credit; short- and medium-term commercial loans for working capital, business expansion and the purchase of equipment; commercial loans to the agricultural industry; commercial mortgage loans; residential mortgages for one to four families, home improvement loans, closed-end home equity loans and home equity lines of credit; and consumer loans, such as auto loans, secured installment loans, and personal loans. The Company also offers personal insurance products, including auto, home, boat, recreational vehicle, landlord and umbrella insurance; commercial insurance including property, liability, automobile, inland marine, workers’ compensation, bond, crop and umbrella insurance products; and financial services including life and disability insurance, health supplements, long-term care, annuities, mutual funds and retirement programs. In addition, it offers personalized investment advisory, wealth management, investment advisory and pension plan services, as well as a real estate investment trust that holds residential mortgages and commercial real estate loans. The company operates a network of 48 banking offices in Allegany, Cattaraugus, Cayuga, Chautauqua, Chemung, Erie, Genesee, Livingston, Monroe, Ontario, Orleans, Seneca, Schuyler, Steuben, Wayne, Wyoming and Yates, New York counties. . Financial Institutions, Inc. was founded in 1817 and is headquartered in Warsaw, New York.
About Dime Community Bancshares (Get a rating)
Dime Community Bancshares, Inc. operates as a holding company for Dime Community Bank which provides various commercial banking and financial services. It accepts term, savings and demand deposits from businesses, consumers and local municipalities. The company also offers commercial real estate loans; multi-family mortgages; residential mortgages; secured and unsecured commercial and consumer loans; home equity loans; and construction and land loans. In addition, it invests in Federal Home Loan Bank, Federal National Mortgage Association, Government National Mortgage Association and Federal Home Loan Mortgage Corporation, mortgage-backed securities, secured mortgage bonds and other mortgage-backed securities. assets ; US Treasury securities; New York State and local municipal bonds; US government-sponsored corporate securities; and corporate bonds. In addition, the company offers deposit account register certificate services and insured cash sweep programs; merchant credit and debit card processing, ATMs, cash management services, safe deposit box processing, online banking, remote deposit capture, safe deposit boxes and individual retirement accounts; investment products and services through a third party broker; and title insurance brokerage services. As of December 31, 2021, it operated 60 branches on Long Island and in the New York boroughs of Brooklyn, Queens, Manhattan and the Bronx. Dime Community Bancshares, Inc. was founded in 1910 and is headquartered in Hauppauge, New York.
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