Broadway Financial (NASDAQ:BYFC) and Suruga Bank (OTCMKTS:SUGBY) Critical Analysis

Suruga Bank (OTCMKTS:SUGBYGet Free Report) and Broadway Financial (NASDAQ:BYFCGet Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Institutional & Insider Ownership

12.1% of Broadway Financial shares are held by institutional investors. 3.0% of Broadway Financial 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 Suruga Bank and Broadway Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Suruga Bank 33.98% 11.18% 0.99%
Broadway Financial -31.80% 3.01% 0.27%

Volatility and Risk

Suruga Bank has a beta of -0.04, indicating that its stock price is 104% less volatile than the S&P 500. Comparatively, Broadway Financial has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Suruga Bank and Broadway Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Suruga Bank 0 0 0 0 0.00
Broadway Financial 1 0 0 0 1.00

Valuation & Earnings

This table compares Suruga Bank and Broadway Financial”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Suruga Bank $730.15 million 1.89 $229.16 million $13.12 6.10
Broadway Financial $63.03 million 1.43 -$24.80 million ($2.75) -3.53

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

Summary

Suruga Bank beats Broadway Financial on 8 of the 12 factors compared between the two stocks.

About Suruga Bank

(Get Free Report)

Suruga Bank Ltd. provides various banking and financial products and services to individuals and corporate customers in Japan. The company offers deposit products, such as time, ordinary, savings, foreign currency, and other deposits, as well as current and general accounts; card, housing, second house, startup, and business up term loans, as well as loans by purpose; credit and debit cards; overdrafts; and other financing products. It also provides investment trust, public bond, pension contribution, insurance, inheritance/trust, lottery, foreign currency, pay-easy, web direct, safe deposit box, external linkage, foreign remittance, fund management, e-combination, payment, nursing care/medical care/dispensing compensation receivable factoring, mortgage, and Internet and telephone banking services. In addition, the company offers staffing, money lending, guarantee, printing, leasing, and agency services. The company was incorporated in 1895 and is headquartered in Numazu, Japan.

About Broadway Financial

(Get Free Report)

Broadway Financial Corporation operates as the holding company for City First Bank, National Association that provides various banking products and services in the United States. It accepts various deposit accounts, including savings accounts, checking accounts, interest checking accounts, money market accounts, and fixed-term certificates of deposit. The company also offers mortgage loans, which are secured by multi-family residential properties; single family residential properties; and commercial real estate, including charter schools, community facilities, and churches, as well as commercial business, construction, and consumer loans. In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments. The company was founded in 1946 and is headquartered in Los Angeles, California.

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