Critical Analysis: Oconee Federal Financial (NASDAQ:OFED) versus Ottawa Savings Bancorp (NASDAQ:OTTW)

Oconee Federal Financial (NASDAQ:OFED) and Ottawa Savings Bancorp (NASDAQ:OTTW) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Insider and Institutional Ownership

3.2% of Oconee Federal Financial shares are held by institutional investors. Comparatively, 23.6% of Ottawa Savings Bancorp shares are held by institutional investors. 5.5% of Oconee Federal Financial shares are held by insiders. Comparatively, 7.0% of Ottawa Savings Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Oconee Federal Financial and Ottawa Savings Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oconee Federal Financial $20.54 million 6.41 $3.72 million N/A N/A
Ottawa Savings Bancorp $13.38 million 3.28 $1.99 million N/A N/A

Oconee Federal Financial has higher revenue and earnings than Ottawa Savings Bancorp.

Volatility & Risk

Oconee Federal Financial has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500. Comparatively, Ottawa Savings Bancorp has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500.

Dividends

Oconee Federal Financial pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Ottawa Savings Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.8%.

Analyst Ratings

This is a summary of current ratings and price targets for Oconee Federal Financial and Ottawa Savings Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oconee Federal Financial 0 0 0 0 N/A
Ottawa Savings Bancorp 0 0 0 0 N/A

Profitability

This table compares Oconee Federal Financial and Ottawa Savings Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oconee Federal Financial 18.02% 4.34% 0.73%
Ottawa Savings Bancorp 13.23% 3.77% 0.66%

Summary

Oconee Federal Financial beats Ottawa Savings Bancorp on 7 of the 11 factors compared between the two stocks.

Oconee Federal Financial Company Profile

Oconee Federal Financial Corp. operates as a holding company for Oconee Federal Savings and Loan Association that provides various banking products and services in the Oconee County area of northwestern South Carolina and the northeast area of Georgia. The company's deposit products include demand, NOW, money market, savings, certificates of deposit, and individual retirement accounts. Its loan portfolio comprises one-to-four family residential mortgage loans; home equity loans and lines of credit; nonresidential real estate loans; construction and land loans; commercial and industrial loans; agricultural loans; and consumer loans. Oconee Federal Financial Corp. operates through its executive office and seven branch offices located in Oconee County, South Carolina; Stephens County, Georgia; and Rabun County, Georgia. The company was founded in 1924 and is based in Seneca, South Carolina. Oconee Federal Financial Corp. is a subsidiary of Oconee Federal, MHC.

Ottawa Savings Bancorp Company Profile

Ottawa Bancorp, Inc. operates as the holding company for Ottawa Savings Bank, a chartered savings bank that provides various financial services to individual and corporate customers in Illinois. The company offers various deposit accounts, including checking, money market, regular savings, club savings, certificate, and various retirement accounts. It also provides one-to-four family residential, multi-family and non-residential real estate, commercial, and construction loans; and consumer loans comprising auto, share, and personal unsecured loans, as well as home equity lines of credit. The company was formerly known as Ottawa Savings Bancorp, Inc. and changed its name to Ottawa Bancorp, Inc. in October 2016. Ottawa Bancorp, Inc. was founded in 1871 and is headquartered in Ottawa, Illinois.

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