Sturgis Bancorp (OTCMKTS:STBI – Get Rating) and NBT Bancorp (NASDAQ:NBTB – Get Rating) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.
Insider & Institutional Ownership
54.3% of NBT Bancorp shares are held by institutional investors. 16.0% of Sturgis Bancorp shares are held by company insiders. Comparatively, 3.6% of NBT Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Sturgis Bancorp and NBT Bancorp’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sturgis Bancorp | $33.38 million | 1.37 | $6.34 million | $2.91 | 7.35 |
| NBT Bancorp | $497.67 million | 3.04 | $154.88 million | $3.54 | 9.94 |
NBT Bancorp has higher revenue and earnings than Sturgis Bancorp. Sturgis Bancorp is trading at a lower price-to-earnings ratio than NBT Bancorp, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Sturgis Bancorp has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, NBT Bancorp has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.
Profitability
This table compares Sturgis Bancorp and NBT Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sturgis Bancorp | 18.57% | N/A | N/A |
| NBT Bancorp | 30.64% | 12.66% | 1.30% |
Dividends
Sturgis Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 3.2%. NBT Bancorp pays an annual dividend of $1.12 per share and has a dividend yield of 3.2%. Sturgis Bancorp pays out 23.4% of its earnings in the form of a dividend. NBT Bancorp pays out 31.6% 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 raised its dividend for 1 consecutive years. NBT Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a summary of current ratings and recommmendations for Sturgis Bancorp and NBT Bancorp, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sturgis Bancorp | 0 | 0 | 0 | 0 | N/A |
| NBT Bancorp | 0 | 1 | 1 | 0 | 2.50 |
NBT Bancorp has a consensus price target of $40.00, suggesting a potential upside of 13.64%. Given NBT Bancorp’s higher probable upside, analysts plainly believe NBT Bancorp is more favorable than Sturgis Bancorp.
Summary
NBT Bancorp beats Sturgis Bancorp on 13 of the 15 factors compared between the two stocks.
About Sturgis Bancorp (Get Rating)
Sturgis Bancorp, Inc. operates as the bank holding company for Sturgis Bank & Trust Company that provides banking products and services in Michigan, the United States. The company offers checking, savings and health savings, and money market accounts; and certificates of deposit and individual retirement accounts. It also provides mortgage, automobile, savings secured, personal, equipment and machinery, government supported, and commercial real estate loans, as well as home equity lines of credit and business lines of credit; and credit cards. In addition, the company offers other personal banking services, such as private banking, cashier checks, wire transfers, foreign drafts and foreign currency, overdraft protection, night depository, and notary services, as well as safe deposit boxes and residential mortgages. Further, it provides direct deposit, remote deposit capture, Visa check card, and checks reorder services; and investment and financial-advisory services, as well as commercial and consumer insurance and title insurance products. Additionally, the company offers real estate and asset management services, such as real estate settlements, trust administration, record keeping, investment management, and custody services; and online and mobile banking, bill pay, and mobile wallet services. It operates through 14 bank facilities; and 4 full service standalone ATM’s located in 11 communities in Michigan. Sturgis Bancorp, Inc. was founded in 1905 and is based in Sturgis, Michigan.
About NBT Bancorp (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.
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