Reviewing First Capital (NASDAQ:FCAP) and Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK)

Northfield Bancorp, Inc. (Staten Island, NY) (NASDAQ:NFBK) and First Capital (NASDAQ:FCAP) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Valuation & Earnings

This table compares Northfield Bancorp, Inc. (Staten Island, NY) and First Capital’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northfield Bancorp, Inc. (Staten Island, NY)	$220.69 million	1.91	$37.67 million	$0.75	12.71
First Capital	$51.24 million	1.99	$12.79 million	$3.57	8.54

Northfield Bancorp, Inc. (Staten Island, NY) has higher revenue and earnings than First Capital. First Capital is trading at a lower price-to-earnings ratio than Northfield Bancorp, Inc. (Staten Island, NY), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Northfield Bancorp, Inc. (Staten Island, NY) and First Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northfield Bancorp, Inc. (Staten Island, NY)	14.02%	4.65%	0.57%
First Capital	22.59%	12.15%	1.03%

Dividends

Northfield Bancorp, Inc. (Staten Island, NY) pays an annual dividend of $0.52 per share and has a dividend yield of 5.5%. First Capital pays an annual dividend of $1.08 per share and has a dividend yield of 3.5%. Northfield Bancorp, Inc. (Staten Island, NY) pays out 69.3% of its earnings in the form of a dividend. First Capital pays out 30.3% 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. First Capital has raised its dividend for 1 consecutive years.

Insider & Institutional Ownership

65.5% of Northfield Bancorp, Inc. (Staten Island, NY) shares are owned by institutional investors. Comparatively, 11.7% of First Capital shares are owned by institutional investors. 6.5% of Northfield Bancorp, Inc. (Staten Island, NY) shares are owned by insiders. Comparatively, 4.4% of First Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Northfield Bancorp, Inc. (Staten Island, NY) and First Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northfield Bancorp, Inc. (Staten Island, NY)	0	2	0	0	2.00
First Capital	0	0	0	0	N/A

Northfield Bancorp, Inc. (Staten Island, NY) presently has a consensus target price of $11.00, indicating a potential upside of 15.42%. Given Northfield Bancorp, Inc. (Staten Island, NY)’s higher possible upside, equities research analysts plainly believe Northfield Bancorp, Inc. (Staten Island, NY) is more favorable than First Capital.

Volatility and Risk

Northfield Bancorp, Inc. (Staten Island, NY) has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, First Capital has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Summary

Northfield Bancorp, Inc. (Staten Island, NY) beats First Capital on 8 of the 15 factors compared between the two stocks.

About Northfield Bancorp, Inc. (Staten Island, NY)

Northfield Bancorp, Inc. (Staten Island, NY) operates as the bank holding company for Northfield Bank that provides various banking products and services primarily to individuals and corporate customers. It accepts various deposits products, including certificates of deposit, passbook, statement, and money market savings accounts; transaction deposit accounts comprising negotiable orders of withdrawal accounts, and interest and non-interest-bearing checking accounts; and brokered deposits. The company also offers various loans comprising multifamily and other commercial real estate loans, construction and land loans, commercial and industrial loans, one-to-four family residential real estate loans, and home equity loans and lines of credit. In addition, it purchases various investment securities, such as mortgage-backed securities and corporate bonds; and deposits funds in other financial institutions, as well as holds mortgage loans, mortgage-backed securities, and other investments. Further, the company provides automated teller machines; telephone, internet, and mobile banking services; and ACH and wire transfers, cash management, positive pay, and remote deposit capture services. It operates full-service banking offices in Staten Island and Brooklyn, New York; and Hunterdon, Middlesex, Mercer, and Union counties, New Jersey. Northfield Bancorp, Inc. (Staten Island, NY) was founded in 1887 and is headquartered in Woodbridge, New Jersey.

About First Capital

First Capital, Inc. operates as the bank holding company for First Harrison Bank that provides various banking services to individuals and business customers. The company offers various deposit instruments, including non-interest-bearing checking accounts, negotiable order of withdrawal accounts, money market accounts, regular savings accounts, certificates of deposit, and retirement savings plans. It also provides residential mortgage loans, construction loans for residential and commercial properties, and commercial real estate loans, as well as commercial business loans. In addition, the company originates mortgage loans for sale in the secondary market and sells non-deposit investment products; and offers various secured or guaranteed consumer loans comprising automobile and truck loans, home equity loans, home improvement loans, boat loans, mobile home loans, credit cards and other personal loans, and loans secured by savings deposits, as well as unsecured consumer loans. First Capital, Inc. was founded in 1891 and is based in Corydon, Indiana.