Comparing Northeast Bank (NASDAQ:NBN) and Southern States Bancshares (NASDAQ:SSBK)

Northeast Bank (NASDAQ:NBN) and Southern States Bancshares (NASDAQ:SSBK) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Dividends

Northeast Bank pays an annual dividend of $0.04 per share and has a dividend yield of 0.0%. Southern States Bancshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. Northeast Bank pays out 0.5% of its earnings in the form of a dividend. Southern States Bancshares pays out 9.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings & Valuation

This table compares Northeast Bank and Southern States Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northeast Bank	$263.77 million	3.13	$58.23 million	$7.70	13.05
Southern States Bancshares	$177.17 million	1.82	$31.95 million	$3.67	8.91

Northeast Bank has higher revenue and earnings than Southern States Bancshares. Southern States Bancshares is trading at a lower price-to-earnings ratio than Northeast Bank, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

58.7% of Southern States Bancshares shares are held by institutional investors. 14.2% of Northeast Bank shares are held by company insiders. Comparatively, 14.8% of Southern States Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Northeast Bank and Southern States Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northeast Bank	21.94%	N/A	N/A
Southern States Bancshares	19.68%	15.04%	1.38%

Analyst Ratings

This is a summary of current ratings and recommmendations for Northeast Bank and Southern States Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northeast Bank	0	1	1	0	2.50
Southern States Bancshares	0	0	2	0	3.00

Northeast Bank presently has a consensus price target of $91.00, indicating a potential downside of 9.43%. Southern States Bancshares has a consensus price target of $35.50, indicating a potential upside of 8.60%. Given Southern States Bancshares’ stronger consensus rating and higher possible upside, analysts clearly believe Southern States Bancshares is more favorable than Northeast Bank.

Volatility and Risk

Northeast Bank has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Southern States Bancshares has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500.

About Northeast Bank

Northeast Bank provides banking services to individual and corporate customers in Maine. The company's deposit products include demand deposit, NOW, money market, savings, certificate of deposit, and individual retirement accounts, as well as checking accounts. Its loan portfolio comprises residential mortgage loans; multi-family and other commercial real estate loans; commercial and industrial loans, such as term loans, lines of credit and equipment, and receivables financing; consumer loans comprising mobile home and overdraft, and deposit-secured loans; and small business administration loans. In addition, the company offers telephone banking, online banking and bill payment, mobile banking, cash management, and remote deposit capture services, as well as debit and credit card, ATM, electronic transfer, and check services. Further, it provides various services, such as money market, merchant, and payroll and HR. Northeast Bank was founded in 1872 and is headquartered in Portland, Maine.

About Southern States Bancshares

Southern States Bancshares, Inc. operates as the bank holding company for Southern States Bank that provides community banking services to businesses and individuals. The company provides various deposit products, such as savings, money market, and noninterest-bearing demand accounts; certificates of deposit; and time deposits. It offers real estate loan products, including loans for real estate construction and development, residential mortgages, and commercial real estate mortgage loans; commercial and industrial loans; and direct consumer installment loans, overdrafts, and other revolving credit loans. In addition, it offers online and mobile banking, and ATM services. Southern States Bancshares, Inc. was founded in 2007 and is headquartered in Anniston, Alabama.