Porter Bancorp (NASDAQ: PBIB) and America First Multifamily Investors, L.P. (NASDAQ:ATAX) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.
Institutional and Insider Ownership
18.4% of Porter Bancorp shares are held by institutional investors. Comparatively, 7.4% of America First Multifamily Investors, L.P. shares are held by institutional investors. 28.7% of Porter Bancorp shares are held by company insiders. Comparatively, 1.3% of America First Multifamily Investors, L.P. shares are held 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.
Profitability
This table compares Porter Bancorp and America First Multifamily Investors, L.P.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Porter Bancorp | -4.59% | -5.33% | -0.20% |
| America First Multifamily Investors, L.P. | 33.34% | 6.63% | 2.09% |
Risk and Volatility
Porter Bancorp has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, America First Multifamily Investors, L.P. has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.
Valuation & Earnings
This table compares Porter Bancorp and America First Multifamily Investors, L.P.’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Porter Bancorp | $35.80 million | 1.92 | -$2.01 million | ($0.33) | -34.18 |
| America First Multifamily Investors, L.P. | N/A | N/A | N/A | $0.32 | 18.91 |
America First Multifamily Investors, L.P. has higher revenue, but lower earnings than Porter Bancorp. Porter Bancorp is trading at a lower price-to-earnings ratio than America First Multifamily Investors, L.P., indicating that it is currently the more affordable of the two stocks.
Dividends
America First Multifamily Investors, L.P. pays an annual dividend of $0.50 per share and has a dividend yield of 8.3%. Porter Bancorp does not pay a dividend. America First Multifamily Investors, L.P. pays out 156.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Analyst Ratings
This is a breakdown of recent ratings for Porter Bancorp and America First Multifamily Investors, L.P., as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Porter Bancorp | 0 | 0 | 0 | 0 | N/A |
| America First Multifamily Investors, L.P. | 0 | 0 | 1 | 0 | 3.00 |
America First Multifamily Investors, L.P. has a consensus price target of $6.00, suggesting a potential downside of 0.83%. Given America First Multifamily Investors, L.P.’s higher possible upside, analysts plainly believe America First Multifamily Investors, L.P. is more favorable than Porter Bancorp.
Summary
America First Multifamily Investors, L.P. beats Porter Bancorp on 7 of the 12 factors compared between the two stocks.
Porter Bancorp Company Profile
Porter Bancorp, Inc. is a bank holding company. The Company operates through its subsidiary, PBI Bank (the Bank). The Bank is a community bank with a range of commercial and personal banking products. It offers retail and commercial deposit products. It offers drive-in banking facilities, automatic teller machines, night depository, personalized checks, credit cards, debit cards, Internet banking, mobile banking, treasury management services, remote deposit services, electronic funds transfers through automated clearing house services, domestic and foreign wire transfers, cash management, vault services, and loan and deposit sweep accounts. It operates banking offices in approximately 12 counties in Kentucky. Its markets include metropolitan Louisville in Jefferson County and the surrounding counties of Henry and Bullitt. It serves south central Kentucky and southern Kentucky from banking offices in Butler, Green, Hart, Edmonson, Barren, Warren, Ohio and Daviess Counties.
America First Multifamily Investors, L.P. Company Profile
America First Multifamily Investors, L.P. is engaged in acquiring, holding, selling and dealing with a portfolio of mortgage revenue bonds, which have been issued to provide construction and/or permanent financing for multifamily and student housing (collectively Residential Properties) and commercial properties. Its segments are Mortgage Revenue Bond Investments, MF Properties, Public Housing Capital Fund Trusts and mortgage-backed securities (MBS) Investments. Its Mortgage Revenue Bond Investments segment consists of its portfolio of mortgage revenue bonds, which have been issued to provide construction and/or permanent financing for the residential properties and a commercial property. The MF Properties segment consists of indirect equity interests in multifamily, student housing, and senior citizen residential properties, which are not financed by mortgage revenue bonds held by the Company, but which it intends to finance by such bonds through a restructuring.
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