Reviewing Affinity Bancshares (NASDAQ:AFBI) and NB Bancorp (NASDAQ:NBBK)

Affinity Bancshares (NASDAQ:AFBI) and NB Bancorp (NASDAQ:NBBK) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Valuation & Earnings

This table compares Affinity Bancshares and NB Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Affinity Bancshares	$30.90 million	3.66	$6.45 million	$0.85	20.76
NB Bancorp	$163.52 million	4.52	$9.82 million	N/A	N/A

NB Bancorp has higher revenue and earnings than Affinity Bancshares.

Analyst Ratings

This is a summary of current ratings and price targets for Affinity Bancshares and NB Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Affinity Bancshares	0	0	0	0	0.00
NB Bancorp	0	0	1	0	3.00

NB Bancorp has a consensus target price of $22.00, indicating a potential upside of 27.02%. Given NB Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe NB Bancorp is more favorable than Affinity Bancshares.

Institutional & Insider Ownership

39.3% of Affinity Bancshares shares are held by institutional investors. 10.8% of Affinity Bancshares shares are held by company insiders. Comparatively, 1.7% of NB Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Affinity Bancshares and NB Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Affinity Bancshares	11.38%	4.50%	0.65%
NB Bancorp	4.47%	2.40%	0.38%

Summary

NB Bancorp beats Affinity Bancshares on 6 of the 11 factors compared between the two stocks.

About Affinity Bancshares

Affinity Bancshares, Inc. operates as the holding company for Affinity Bank that provides various banking products and services in Georgia. The company offers various deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts, as well as Kasasa (rewards) deposit program for checking accounts with interest rates or cash-back rewards. It offers commercial and residential real estate, commercial and industrial, residential mortgage, construction and land, and consumer loans, as well as balloon and adjustable-rate loans. In addition, the company invests in U.S. treasury securities; securities issued by the U.S. government and its agencies, or government sponsored enterprises, including mortgage-backed securities and collateralized mortgage obligations; corporate and municipal bonds; certificates of deposit in other financial institutions; and federal and money market funds. Further, it operates a virtual bank under the name FitnessBank, which accepts deposits and provides higher interest rates based on customers meeting certain fitness goals. Affinity Bancshares, Inc. was founded in 1928 and is headquartered in Covington, Georgia.

About NB Bancorp

NB Bancorp, Inc. focuses on operating as a bank holding company for Needham Bank that provides various banking products and services in Greater Boston metropolitan area and surrounding communities in Massachusetts, eastern Connecticut, southern New Hampshire, and Rhode Island. The company offers various deposits, including certificate of deposit, individual retirement, money market, savings, NOW, demand deposit, and interest-bearing and noninterest-bearing checking accounts; and commercial real estate and multifamily, one- to four-family residential real estate, construction and land development, commercial and industrial, and consumer loans, as well as home equity loans and lines of credit. It also invests in securities consisting of U.S. treasury and federal agency securities, government-sponsored residential mortgage-backed securities, municipal bonds, and corporate bonds. The company was founded in 1892 and is based in Needham, Massachusetts.