Finward Bancorp (NASDAQ:FNWD) and Carver Bancorp (NASDAQ:CARV) Head-To-Head Review

Finward Bancorp (NASDAQ:FNWD) and Carver Bancorp (NASDAQ:CARV) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

26.6% of Finward Bancorp shares are held by institutional investors. Comparatively, 18.2% of Carver Bancorp shares are held by institutional investors. 5.2% of Finward Bancorp shares are held by insiders. Comparatively, 1.3% of Carver Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Finward Bancorp and Carver Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Finward Bancorp	0	0	0	0	N/A
Carver Bancorp	0	0	0	0	N/A

Profitability

This table compares Finward Bancorp and Carver Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Finward Bancorp	14.11%	11.12%	0.73%
Carver Bancorp	-11.87%	-23.86%	-0.61%

Volatility and Risk

Finward Bancorp has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, Carver Bancorp has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Earnings & Valuation

This table compares Finward Bancorp and Carver Bancorp’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Finward Bancorp	$96.53 million	1.10	$8.38 million	$3.60	6.82
Carver Bancorp	$31.30 million	0.22	-$4.40 million	($1.00)	-1.39

Finward Bancorp has higher revenue and earnings than Carver Bancorp. Carver Bancorp is trading at a lower price-to-earnings ratio than Finward Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Finward Bancorp beats Carver Bancorp on 10 of the 11 factors compared between the two stocks.

About Finward Bancorp

Finward Bancorp operates as the holding company for Peoples Bank that provides various banking products and services. The company's deposit products include non-interest- and interest-bearing demand accounts, savings accounts, money market deposit accounts, certificate accounts, and retirement savings plans. Its loan products portfolio comprises residential mortgage loans that enable borrowers to purchase existing homes, refinance existing homes, or construct new homes; construction loans primarily to individuals and contractors; commercial real estate loans; consumer loans to individuals for personal, household, or family purposes; home equity line of credit; home improvement loans and equity loans; commercial business loans; government loans; and loans to municipalities. The company also offers estate and retirement planning, guardianships, land trusts, profit sharing and 401(k) retirement plans, IRA and Keogh accounts, and investment agency accounts, as well as serves as the personal representative of estates, and acts as trustee for revocable and irrevocable trusts. In addition, it provides insurance and annuity investments to wealth management customers; holds real estate properties; and operates as a real estate investment trust. The company was formerly known as NorthWest Indiana Bancorp and changed its name to Finward Bancorp in May 2021. Finward Bancorp was founded in 1916 and is headquartered in Munster, Indiana.

About Carver Bancorp

Carver Bancorp, Inc. operates as the holding company for Carver Federal Savings Bank that provides consumer and commercial banking services for consumers, businesses, non-profit organizations, and governmental and quasi-governmental agencies primarily in New York. It accepts various deposit products, including demand, savings, and time deposits; passbook and statement accounts, and certificates of deposit; and individual retirement accounts. The company provides lending products, such as one-to-four family residential, multifamily real estate, and commercial real estate lending; and construction, business and small business administration, and consumer and other loans. In addition, it offers other consumer and commercial banking products and services, including debit cards, online account opening and banking, online bill pay, and telephone banking, as well as check cashing, wire transfer, bill payment, reloadable prepaid card, and money order services. Carver Bancorp, Inc. was founded in 1948 and is headquartered in New York, New York.