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

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

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NBT Bancorp $497.67 million 3.11 $154.88 million $3.54 10.15
Northwest Bancshares $561.40 million 2.79 $154.32 million $1.11 11.13

NBT Bancorp has higher earnings, but lower revenue than Northwest Bancshares. NBT Bancorp is trading 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 NBT Bancorp and Northwest Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NBT Bancorp 30.64% 12.66% 1.30%
Northwest Bancshares 26.19% 9.12% 0.99%

Institutional and Insider Ownership

55.7% of NBT Bancorp shares are held by institutional investors. Comparatively, 61.2% of Northwest Bancshares shares are held by institutional investors. 3.6% of NBT Bancorp shares are held by insiders. Comparatively, 1.0% of Northwest Bancshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money 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 out 31.6% of its earnings in the form of a dividend. Northwest Bancshares pays out 72.1% 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. NBT Bancorp has increased its dividend for 1 consecutive years 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 & Volatility

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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NBT Bancorp 0 1 1 0 2.50
Northwest Bancshares 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 NBT Bancorp is more favorable than Northwest Bancshares.

Summary

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

NBT Bancorp Company Profile (Get Rating)

NBT Bancorp Inc., a financial holding company, provides commercial banking, retail banking, and wealth management services. Its deposit products include demand deposit, savings, negotiable order of withdrawal, money market deposit, and certificate of deposit accounts. The company’s loan portfolio comprises commercial and industrial, commercial real estate, agricultural, and commercial construction loans; indirect and direct consumer, home equity, mortgages, business banking loans, and commercial loans; and residential real estate loans. It also provides trust and investment services; financial planning and life insurance services; and retirement plan consulting and recordkeeping services. In addition, the company offers insurance products comprising personal property and casualty, business liability, and commercial insurance, as well as other products and services through 24-hour online, mobile, and telephone channels that enable 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 Rating)

Northwest Bancshares, Inc. operates as the holding company for Northwest Bank, a state-chartered savings bank that provides personal and business banking solutions. The company accepts various deposits, including checking, savings, money market deposit, term certificate, and individual retirement accounts. It also offers loan products comprising one-to-four-family residential real estate loans and loans collateralized by multi-family residential and commercial real estate; commercial business loans; and consumer loans, including automobile loans, sales finance 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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