Analyzing John Marshall Bancorp (NASDAQ:JMSB) and Oak Valley Bancorp (NASDAQ:OVLY)

Earnings and Valuation

This table compares John Marshall Bancorp and Oak Valley Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
John Marshall Bancorp	$85.83 million	3.77	$5.16 million	$1.19	19.08
Oak Valley Bancorp	$76.98 million	3.41	$30.85 million	$3.00	10.48

Oak Valley Bancorp has lower revenue, but higher earnings than John Marshall Bancorp. Oak Valley Bancorp is trading at a lower price-to-earnings ratio than John Marshall Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

John Marshall Bancorp pays an annual dividend of $0.25 per share and has a dividend yield of 1.1%. Oak Valley Bancorp pays an annual dividend of $0.45 per share and has a dividend yield of 1.4%. John Marshall Bancorp pays out 21.0% of its earnings in the form of a dividend. Oak Valley Bancorp pays out 15.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Oak Valley Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

John Marshall Bancorp has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Oak Valley Bancorp has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500.

Profitability

This table compares John Marshall Bancorp and Oak Valley Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
John Marshall Bancorp	15.13%	7.15%	0.75%
Oak Valley Bancorp	28.03%	14.38%	1.34%

Insider and Institutional Ownership

39.1% of John Marshall Bancorp shares are owned by institutional investors. Comparatively, 30.9% of Oak Valley Bancorp shares are owned by institutional investors. 12.7% of John Marshall Bancorp shares are owned by insiders. Comparatively, 19.3% of Oak Valley Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Oak Valley Bancorp beats John Marshall Bancorp on 8 of the 13 factors compared between the two stocks.

About John Marshall Bancorp

John Marshall Bancorp, Inc. operates as the bank holding company for John Marshall Bank that provides banking products and financial services. The company accepts checking, demand, NOW, savings, and money market accounts, as well as certificates of deposit. It offers residential and commercial construction and development loans, commercial term, mortgage, commercial real estate, industrial loans, and other commercial lines of credit; debit and credit cards; and treasury and cash management, investment, business and personal insurance, remote deposit capture, deposit sweep and online and mobile banking services. The company serves small to medium-sized businesses, their owners and employees, professional corporations, non-profits, and individuals. The company was founded in 2005 and is headquartered in Reston, Virginia.

About Oak Valley Bancorp

Oak Valley Bancorp operates as the bank holding company for Oak Valley Community Bank that provides a range of commercial banking services to individuals and small to medium-sized businesses in the Central Valley and the Eastern Sierras. The company's deposits products include checking and savings, money market, health savings, and individual retirement accounts, as well as certificates of deposit. It also offers commercial real estate loans, commercial business lending and trade finance, and small business administration lending, as well as consumer loans, including automobile loans, home mortgages, credit lines, and other personal loans. In addition, the company provides online and mobile banking, remote deposit capture, merchant, night depository, extended hours, wire transfer of funds, note collection services, and automated teller machines. The company was incorporated in 1990 and is headquartered in Oakdale, California.