Reviewing NBT Bancorp (NASDAQ:NBTB) and Ballston Spa Bancorp (OTCMKTS:BSPA)

Ballston Spa Bancorp (OTCMKTS:BSPA) and NBT Bancorp (NASDAQ:NBTB) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Institutional and Insider Ownership

2.4% of Ballston Spa Bancorp shares are owned by institutional investors. Comparatively, 58.5% of NBT Bancorp shares are owned by institutional investors. 3.3% of NBT Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Ballston Spa Bancorp and NBT Bancorp’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ballston Spa Bancorp	N/A	N/A	N/A	N/A	N/A
NBT Bancorp	$664.97 million	2.62	$118.78 million	$2.59	14.29

NBT Bancorp has higher revenue and earnings than Ballston Spa Bancorp.

Volatility & Risk

Ballston Spa Bancorp has a beta of -0.31, indicating that its stock price is 131% less volatile than the S&P 500. Comparatively, NBT Bancorp has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Profitability

This table compares Ballston Spa Bancorp and NBT Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ballston Spa Bancorp	N/A	N/A	N/A
NBT Bancorp	16.71%	10.20%	1.06%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Ballston Spa Bancorp and NBT Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ballston Spa Bancorp	0	0	0	0	N/A
NBT Bancorp	0	1	4	0	2.80

NBT Bancorp has a consensus target price of $41.20, indicating a potential upside of 11.35%. Given NBT Bancorp’s higher possible upside, analysts plainly believe NBT Bancorp is more favorable than Ballston Spa Bancorp.

Dividends

Ballston Spa Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 2.4%. NBT Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 3.5%. NBT Bancorp pays out 49.4% of its earnings in the form of a dividend. NBT Bancorp has raised its dividend for 11 consecutive years. NBT Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

NBT Bancorp beats Ballston Spa Bancorp on 11 of the 12 factors compared between the two stocks.

About Ballston Spa Bancorp

Ballston Spa Bancorp, Inc. operates as a holding company for Ballston Spa National Bank that provides a range of banking, financing, fiduciary, brokerage, and other financial services to corporate, municipal, and individual customers in the United States. It offers checking, money market, savings, health savings, and individual retirement accounts, as well as certificates of deposit; loan products, such as mortgage and home construction, improvement, and equity loans, auto, boat, RV, personal, commercial, and small business loans, as well as lines of credit and government programs; and debits and credit cards. The company also provides personal investment services, which include annuities, college savings plans, mutual funds, and life and long term care insurance products; retirement plans; college planning services; investment and asset management; trusteeship; estate settlement; special needs and disability trusts; and wealth management services. In addition, the company offers treasury management services; and merchant and payment processing services, as well as online and mobile banking, and digital payments. The company was founded in 1838 and is based in Ballston Spa, New York.

About NBT Bancorp

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 indirect and direct consumer, home equity, mortgages, business banking loans, and commercial loans; commercial and industrial, commercial real estate, agricultural, and commercial construction loans; and residential real estate loans. It also provides trust and investment services; financial planning and life insurance services; and retirement plan administration 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. Further, it operates as a property management and passive investment company, as well as investment advisor that provides investment management and financial consulting services. The company operates in upstate New York, northeastern Pennsylvania, southern New Hampshire, western Massachusetts, Vermont, southern Maine, and central and northwestern Connecticut. NBT Bancorp Inc. was founded in 1856 and is headquartered in Norwich, New York.