Reviewing Broadway Financial (NASDAQ:BYFC) and Equitable Financial (OTCMKTS:EQFN)

Risk & Volatility

Equitable Financial has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500. Comparatively, Broadway Financial has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Earnings & Valuation

This table compares Equitable Financial and Broadway Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equitable Financial	$31.33 million	1.07	$2.71 million	$1.02	12.75
Broadway Financial	$52.58 million	1.40	$4.51 million	$0.29	27.81

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

Profitability

This table compares Equitable Financial and Broadway Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equitable Financial	8.66%	5.81%	0.54%
Broadway Financial	5.01%	2.43%	0.24%

Institutional and Insider Ownership

7.2% of Equitable Financial shares are held by institutional investors. Comparatively, 12.1% of Broadway Financial shares are held by institutional investors. 11.3% of Equitable Financial shares are held by company insiders. Comparatively, 4.7% of Broadway Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Broadway Financial beats Equitable Financial on 6 of the 11 factors compared between the two stocks.

About Equitable Financial

Equitable Financial Corp. operates as the holding company for Equitable Bank that provides various banking products and services in Nebraska, the United States. The company offers checking and savings accounts; recorder checks; online and mobile banking; remote deposit capture; voice banking; credit card processing; debit and gift cards; and safe deposit boxes. It also provides home, home equity, auto, personal, real estate and construction, operating lines of credit, small business administration, and agricultural loans, as well as equipment financing. In addition, the company offers foreign currency and exchanges; financial planning; wealth management; investment advisory; and retirement services. It operates through branches located in Grand Island, North Platte, and Omaha. The company was founded in 1882 and is headquartered in Grand Island, Nebraska.

About Broadway Financial

Broadway Financial Corporation operates as the holding company for City First Bank, National Association that provides various banking products and services in the United States. It accepts various deposit accounts, including savings accounts, checking accounts, interest checking accounts, money market accounts, and fixed-term certificates of deposit. The company also offers mortgage loans, which are secured by multi-family residential properties; single family residential properties; and commercial real estate, including charter schools, community facilities, and churches, as well as commercial business, construction, and consumer loans. In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments. The company was founded in 1946 and is headquartered in Los Angeles, California.