Contrasting Arrow Financial (NASDAQ:AROW) & Ballston Spa Bancorp (OTCMKTS:BSPA)

Arrow Financial (NASDAQ:AROW) and Ballston Spa Bancorp (OTCMKTS:BSPA) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Dividends

Arrow Financial pays an annual dividend of $1.08 per share and has a dividend yield of 3.5%. Ballston Spa Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 2.4%. Arrow Financial pays out 62.8% of its earnings in the form of a dividend.

Profitability

This table compares Arrow Financial and Ballston Spa Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arrow Financial	14.34%	7.89%	0.69%
Ballston Spa Bancorp	N/A	N/A	N/A

Insider and Institutional Ownership

46.7% of Arrow Financial shares are held by institutional investors. Comparatively, 2.4% of Ballston Spa Bancorp shares are held by institutional investors. 3.6% of Arrow Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Arrow Financial has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Ballston Spa Bancorp has a beta of -0.28, meaning that its share price is 128% less volatile than the S&P 500.

Earnings and Valuation

This table compares Arrow Financial and Ballston Spa Bancorp’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arrow Financial	$191.68 million	2.70	$30.08 million	$1.72	18.05
Ballston Spa Bancorp	N/A	N/A	N/A	N/A	N/A

Arrow Financial has higher revenue and earnings than Ballston Spa Bancorp.

Analyst Ratings

This is a summary of current ratings and recommmendations for Arrow Financial and Ballston Spa Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arrow Financial	0	1	0	0	2.00
Ballston Spa Bancorp	0	0	0	0	N/A

Summary

Arrow Financial beats Ballston Spa Bancorp on 8 of the 9 factors compared between the two stocks.

About Arrow Financial

Arrow Financial Corporation, a bank holding company, provides commercial and consumer banking, and financial products and services. The company's deposit products include demand deposits, interest-bearing checking accounts, savings deposits, time deposits, and other time deposits. Its lending activities comprise commercial loans, such as term loans, time notes, and lines of credit; and commercial real estate loans to finance real estate purchases, refinancing, expansions, and enhancement to commercial properties, as well as commercial construction and land development loans to finance projects. The company's lending activities also include consumer installment loans to finance personal expenditures, personal lines of credit, overdraft protection, and automobile loans; and residential real estate loans, fixed home equity loans, and home equity lines of credit for consumers to finance home improvements, debt consolidation, education, and other uses. In addition, it maintains an indirect lending program. Further, the company provides retirement planning, trust, and estate administration services for individuals, as well as pension, profit-sharing, and employee benefit plan administration services for corporations. Additionally, it offers insurance agency services comprising group health care policies and life insurance, and property and casualty insurance products; and investment advisory services to its proprietary mutual funds, as well as holds a real estate investment trust. It operates in the northeastern region of New York State in Warren, Washington, Saratoga, Essex, Clinton, Rensselaer, Albany, and Schenectady counties. Arrow Financial Corporation was founded in 1851 and is headquartered in Glens Falls, New York.

About Ballston Spa Bancorp

Ballston Spa Bancorp, Inc. operates as a holding company for Ballston Spa National Bank that provides a range of banking, financing, fiduciary, brokerage, and other financial services to corporate, municipal, and individual customers in the United States. It offers checking, money market, savings, health savings, and individual retirement accounts, as well as certificates of deposit; loan products, such as mortgage and home construction, improvement, and equity loans, auto, boat, RV, personal, commercial, and small business loans, as well as lines of credit and government programs; and debits and credit cards. The company also provides personal investment services, which include annuities, college savings plans, mutual funds, and life and long term care insurance products; retirement plans; college planning services; investment and asset management; trusteeship; estate settlement; special needs and disability trusts; and wealth management services. In addition, the company offers treasury management services; and merchant and payment processing services, as well as online and mobile banking, and digital payments. The company was founded in 1838 and is based in Ballston Spa, New York.