Farmers & Merchants Bank of Long Beach (OTCMKTS:FMBL) vs. JSB Financial (OTCMKTS:JFWV) Financial Review

Volatility & Risk

JSB Financial has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Farmers & Merchants Bank of Long Beach has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.

Dividends

JSB Financial pays an annual dividend of $2.40 per share and has a dividend yield of 1.9%. Farmers & Merchants Bank of Long Beach pays an annual dividend of $112.00 per share and has a dividend yield of 2.0%. JSB Financial pays out 15.0% of its earnings in the form of a dividend. Farmers & Merchants Bank of Long Beach pays out 26.2% 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.

Profitability

This table compares JSB Financial and Farmers & Merchants Bank of Long Beach’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JSB Financial	N/A	N/A	N/A
Farmers & Merchants Bank of Long Beach	11.52%	3.95%	0.44%

Valuation and Earnings

This table compares JSB Financial and Farmers & Merchants Bank of Long Beach”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JSB Financial	N/A	N/A	$3.00 million	$16.01	7.81
Farmers & Merchants Bank of Long Beach	$431.97 million	1.58	$70.01 million	$427.35	13.31

Farmers & Merchants Bank of Long Beach has higher revenue and earnings than JSB Financial. JSB Financial is trading at a lower price-to-earnings ratio than Farmers & Merchants Bank of Long Beach, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

0.1% of JSB Financial shares are owned by institutional investors. Comparatively, 7.6% of Farmers & Merchants Bank of Long Beach shares are owned by institutional investors. 12.8% of Farmers & Merchants Bank of Long Beach shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Farmers & Merchants Bank of Long Beach beats JSB Financial on 10 of the 12 factors compared between the two stocks.

About JSB Financial

JSB Financial Inc. operates as the bank holding company for Jefferson Security Bank that provides various banking products and services to individuals, agricultural businesses, small and medium-sized businesses, local government entities, and non-profit organizations. It accepts various deposit products, such as checking, savings, money market, individual retirement, overdraft protection, and sweep accounts, as well as certificates of deposit. The company's loan portfolio includes personal and vehicle, mortgage, construction, commercial, and home equity loans. It also offers ATM, online and mobile banking, bill pay, paperless statements, cash management, remote deposit capture, merchant, and credit and debit card services. The company was founded in 1869 and is headquartered in Shepherdstown, West Virginia.

About Farmers & Merchants Bank of Long Beach

Farmers & Merchants Bank of Long Beach provides various banking products and services to individuals, professionals, and small to medium-sized businesses in Los Angeles, Orange, and Santa Barbara Counties. It offers checking, savings, Christmas club savings, health savings, market rate savings, and money market accounts; demand and time deposits; certificates of deposit; and individual retirement account. The company also provides personal, home, commercial real estate, real estate and construction, and commercial business loans, as well as lines of credit; financing for residential loans comprising single-family and multifamily loans; and credit and debit cards. In addition, it offers account management, receivables and payables, and risk management services; commercial lending services; and faith-based and healthcare banking services, as well as online and mobile banking services. Farmers & Merchants Bank of Long Beach was founded in 1907 and is headquartered in Long Beach, California.