Greystone Housing Impact Investors (NYSE:GHI) demonstrates a stronger performance compared to Finward Bancorp (NASDAQ:FNWD) across multiple financial metrics. A recent analysis highlights key differences in profitability, institutional ownership, dividend yields, and analyst recommendations, positioning Greystone as the more favorable investment.
Volatility and Risk Assessment
Greystone Housing Impact Investors exhibits a beta of 0.57, indicating that its share price is approximately 43% less volatile than the S&P 500. In contrast, Finward Bancorp shows an even lower beta of 0.31, suggesting its shares are 69% less volatile. This reduced volatility may appeal to risk-averse investors looking for stability in their portfolios.
Institutional and Insider Ownership
Institutional investors hold 9.0% of Greystone’s shares, while Finward Bancorp enjoys a higher institutional ownership at 26.6%. Furthermore, insider ownership stands at 1.8% for Greystone and 13.1% for Finward. Strong institutional ownership typically indicates confidence from large investors, signaling potential for long-term growth.
Analysts have evaluated both companies, with Greystone currently holding a consensus target price of $13.00, implying a potential upside of 62.40%. In contrast, Finward Bancorp’s target price of $34.00 suggests a possible downside of 5.32%. These figures indicate that analysts favor Greystone, seeing it as the more attractive investment option.
Dividend Comparison
The dividend landscape reveals Greystone Housing Impact Investors as a superior performer. It pays an annual dividend of $1.00 per share, yielding 12.5%, compared to Finward Bancorp’s annual dividend of $0.48 per share and yield of 1.3%. Notably, Greystone’s payout ratio stands at 555.6%, indicating it may struggle to sustain its dividend payments in the future. In contrast, Finward’s payout ratio is more manageable at 25.1%. Despite this, Greystone has successfully increased its dividend for four consecutive years, showcasing its commitment to returning value to shareholders.
In addition to these metrics, an evaluation of earnings and valuation reveals that while Greystone Housing Impact Investors has higher earnings, it reports lower revenue than Finward Bancorp. Finward’s lower price-to-earnings ratio suggests it may currently be the more affordable stock option.
Profitability Metrics
Both companies were compared on their net margins, return on equity, and return on assets. The results indicate that Greystone Housing Impact Investors outperforms Finward Bancorp in several critical profitability measures.
In summary, Greystone Housing Impact Investors surpasses Finward Bancorp in 12 out of 17 evaluated factors. Its advantageous position in terms of dividends, analyst ratings, and profitability metrics make it a compelling choice for investors seeking growth potential in the finance sector.
Company Profiles
Greystone Housing Impact Investors LP focuses on acquiring, holding, and managing a portfolio of mortgage revenue bonds (MRBs). These bonds finance construction and permanent financing for multifamily housing, student accommodations, senior living facilities, and commercial properties across the United States. Established in 1998 and based in Omaha, Nebraska, the company was previously known as America First Multifamily Investors, L.P. before rebranding in December 2022.
Finward Bancorp serves as the holding company for Peoples Bank, offering a wide range of banking products and services, including savings accounts, mortgage loans, and investment services. Founded in 1916 and headquartered in Munster, Indiana, the company was known as NorthWest Indiana Bancorp until its name change in May 2021.
Investors looking for robust growth and reliable returns may find Greystone Housing Impact Investors to be the more attractive option in the current financial landscape.
