Citizens & Northern Outperforms Magyar Bancorp in Key Financial Metrics

Investors are weighing the financial strengths of two small-cap finance companies, Citizens & Northern (NASDAQ:CZNC) and Magyar Bancorp (NASDAQ:MGYR). A comparative analysis reveals that Citizens & Northern exhibits a stronger overall performance in several critical areas, including dividends, profitability, and analyst recommendations.

Dividend and Payout Analysis

Magyar Bancorp offers an annual dividend of $0.32 per share, translating to a dividend yield of 1.9%. In contrast, Citizens & Northern pays an annual dividend of $1.12 per share, boasting a significantly higher dividend yield of 5.5%. While Magyar Bancorp distributes 20.5% of its earnings as dividends, Citizens & Northern pays out 63.6%. Both companies maintain healthy payout ratios, indicating they can sustain their dividend payments over the coming years. Importantly, Magyar Bancorp has successfully raised its dividend for three consecutive years.

Profitability and Earnings Comparison

When assessing profitability, distinct differences emerge. Citizens & Northern surpasses Magyar Bancorp in both gross revenue and earnings per share. While specific figures vary, the higher earnings of Citizens & Northern suggest robust financial health. Notably, Magyar Bancorp is trading at a lower price-to-earnings ratio than its competitor, which may appeal to value-focused investors.

Analyst recommendations further reinforce the favorable outlook for Citizens & Northern. According to recent ratings from MarketBeat, the stock has a consensus price target of $22.00, indicating a potential upside of 7.32%. This positive assessment suggests that analysts view Citizens & Northern as the more attractive investment compared to Magyar Bancorp.

Risk Assessment and Market Volatility

Investors often consider market volatility when evaluating stocks. Magyar Bancorp has a beta of 0.25, indicating its stock price is significantly less volatile than the S&P 500, by approximately 75%. Conversely, Citizens & Northern has a beta of 0.57, indicating a 43% lower volatility than the market benchmark. This lower risk profile may appeal to conservative investors.

In summary, Citizens & Northern outperforms Magyar Bancorp across 11 of the 15 factors analyzed, highlighting its stronger position in the market.

Company Profiles

Magyar Bancorp, Inc. operates as the holding company for Magyar Bank, providing a range of consumer and commercial banking services primarily in New Jersey. Founded in 1922 and headquartered in New Brunswick, the bank offers various deposit accounts, mortgage loans, and investment products.

Conversely, Citizens & Northern Corp. serves as a holding company engaged in community banking, offering a full suite of banking and mortgage services to individual and corporate clients in North Central Pennsylvania and Southern New York State. Established in 1864 and headquartered in Wellsboro, the company provides lending and deposit products tailored to local needs.

As investors continue to evaluate their options in the financial sector, these insights highlight the competitive landscape between these two institutions.