SI Financial Group (NASDAQ:SIFI) and OceanFirst Financial (NASDAQ:OCFC) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.
Institutional & Insider Ownership
59.4% of SI Financial Group shares are held by institutional investors. Comparatively, 76.7% of OceanFirst Financial shares are held by institutional investors. 1.7% of SI Financial Group shares are held by insiders. Comparatively, 3.8% of OceanFirst Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares SI Financial Group and OceanFirst Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SI Financial Group||9.64%||6.20%||0.66%|
Earnings and Valuation
This table compares SI Financial Group and OceanFirst Financial’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SI Financial Group||$65.15 million||2.67||$5.24 million||N/A||N/A|
|OceanFirst Financial||$311.48 million||3.80||$71.93 million||$1.98||12.36|
OceanFirst Financial has higher revenue and earnings than SI Financial Group.
SI Financial Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.7%. OceanFirst Financial pays an annual dividend of $0.68 per share and has a dividend yield of 2.8%. OceanFirst Financial pays out 34.3% of its earnings in the form of a dividend. SI Financial Group has increased its dividend for 3 consecutive years and OceanFirst Financial has increased its dividend for 5 consecutive years. OceanFirst Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
SI Financial Group has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, OceanFirst Financial has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.
This is a breakdown of current recommendations for SI Financial Group and OceanFirst Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SI Financial Group||0||0||0||0||N/A|
OceanFirst Financial has a consensus price target of $32.25, suggesting a potential upside of 31.74%. Given OceanFirst Financial’s higher probable upside, analysts plainly believe OceanFirst Financial is more favorable than SI Financial Group.
OceanFirst Financial beats SI Financial Group on 13 of the 15 factors compared between the two stocks.
About SI Financial Group
SI Financial Group, Inc. operates as the holding company for Savings Institute Bank and Trust Company that provides various financial services to consumers and businesses. Its deposit products include noninterest-bearing demand accounts, such as checking accounts; and interest-bearing accounts, including NOW and money market accounts, regular savings accounts, and certificates of deposit. The company's loan portfolio comprises one- to four-family residential mortgage loans, multi-family and commercial real estate loans, commercial business loans, and construction and land loans. It also provides consumer loans that include home equity lines of credit; and loans secured by marketable securities, passbook or certificate accounts, motorcycles, automobiles, and recreational vehicles. In addition, the company offers trust services, which comprise fiduciary, investment management, and retirement services to individuals, partnerships, corporations, and institutions; and life insurance and annuities. It operates 24 full-service offices throughout Windham, New London, Tolland, Hartford, and Middlesex counties in Connecticut, as well as Newport and Washington counties in Rhode Island. The company was founded in 1842 and is headquartered in Willimantic, Connecticut.
About OceanFirst Financial
OceanFirst Financial Corp. operates as the holding company for OceanFirst Bank N.A. that provides a range of community banking services. The company offers various deposit products to retail, government, and business customers, including money market accounts, savings accounts, interest-bearing checking accounts, non-interest-bearing accounts, and time deposits. It also provides commercial real estate, multi-family mortgage, and land loans; fixed-rate and adjustable-rate mortgage loans that are secured by one-to-four family residences; consumer loans, such as home equity loans and lines of credit, overdraft line of credit, loans on savings accounts, and other consumer loans; and commercial and industrial loans, and lines of credit. In addition, the company invests in mortgage-backed securities, securities issued by the U.S. Government and agencies, corporate securities, and other investments. Further, it offers bankcard and wealth management services; and sells alternative investment products and life insurance products. The company operates through an administrative/branch office located in Toms River, New Jersey; and 45 additional branch offices and 3 deposit production facilities in central and southern New Jersey, as well as operates a wealth management office in Ocean County, and commercial loan production offices in the Philadelphia area and Atlantic, Cape May, and Mercer Counties in New Jersey. OceanFirst Financial Corp. was founded in 1902 and is based in Toms River, New Jersey.
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