Comparing HMN Financial (NASDAQ:HMNF) & FFD Financial (NASDAQ:FFDF)

HMN Financial (NASDAQ:HMNF) and FFD Financial (OTCMKTS:FFDF) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Profitability

This table compares HMN Financial and FFD Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HMN Financial 21.80% 10.19% 1.16%
FFD Financial N/A N/A N/A

Analyst Recommendations

This is a breakdown of current ratings for HMN Financial and FFD Financial, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HMN Financial 0 0 0 0 N/A
FFD Financial 0 0 0 0 N/A

Valuation & Earnings

This table compares HMN Financial and FFD Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HMN Financial $38.10 million 2.60 $8.24 million N/A N/A
FFD Financial $16.22 million 3.25 $4.87 million N/A N/A

HMN Financial has higher revenue and earnings than FFD Financial.

Dividends

FFD Financial pays an annual dividend of $1.60 per share and has a dividend yield of 3.0%. HMN Financial does not pay a dividend.

Risk and Volatility

HMN Financial has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500. Comparatively, FFD Financial has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500.

Insider & Institutional Ownership

41.2% of HMN Financial shares are owned by institutional investors. Comparatively, 2.4% of FFD Financial shares are owned by institutional investors. 8.3% of HMN Financial shares are owned by company insiders. Comparatively, 11.5% of FFD Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

HMN Financial beats FFD Financial on 7 of the 10 factors compared between the two stocks.

HMN Financial Company Profile

HMN Financial, Inc. operates as a bank holding company for Home Federal Savings Bank that provides retail banking products and services. The company offers various deposit accounts, such as savings, negotiable order of withdrawal, non-interest bearing checking, money market, and certificate accounts, including individual retirement accounts. It also provides single family residential loans; commercial real estate and multi-family mortgage loans; construction and commercial business loans; and consumer loans, such as home equity, automobile, recreational vehicle, mobile home, and lot loans, as well as loans secured by deposit accounts, and other loans for household and personal purposes. In addition, the company offers financial planning products and services; and invests in mortgage-backed and related securities, the United States government agency obligations, and other permissible investments. The company operates through 14 full service branches located in Minnesota and Iowa; and 2 loan production offices located in Minnesota and Wisconsin. HMN Financial, Inc. was founded in 1934 and is based in Rochester, Minnesota.

FFD Financial Company Profile

FFD Financial Corporation operates as the holding company for First Federal Community Bank, National Association that provides banking products and services. It offers various deposit products, including checking, savings, money market, health savings, and club accounts, as well as certificates of deposit and individual retirement accounts. The company also provides home mortgage loans, home equity line of credit, auto and boat loans, overdraft protection line of credit, personal loans, business term loans and lines of credit, commercial real estate loans, and equipment loans; and credit and debit cards. In addition, it offers online banking and bill pay, e-statement, overdraft protection, mobile banking, night depository, cash management, wire transfer, safe deposit box, night depository, and teller services. Further, the company through its subsidiary, FFD Risk Management, Inc., provides property and casualty insurance services. It operates branches in Dover, New Philadelphia, Boulevard, Sugarcreek, Berlin, and Mt. Hope. FFD Financial Corporation was founded in 1898 and is based in Dover, Ohio.

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