Critical Analysis: Sturgis Bancorp (OTCMKTS:STBI) & Ballston Spa Bancorp (OTCMKTS:BSPA)

Institutional & Insider Ownership

2.4% of Ballston Spa Bancorp shares are held by institutional investors. 16.0% of Sturgis Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Ballston Spa Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 2.3%. Sturgis Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 3.8%. Sturgis Bancorp pays out 283.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ballston Spa Bancorp	N/A	N/A	N/A
Sturgis Bancorp	0.94%	N/A	N/A

Volatility and Risk

Ballston Spa Bancorp has a beta of -0.29, meaning that its stock price is 129% less volatile than the S&P 500. Comparatively, Sturgis Bancorp has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Earnings and Valuation

This table compares Ballston Spa Bancorp and Sturgis Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ballston Spa Bancorp	$36.16 million	1.20	$4.78 million	N/A	N/A
Sturgis Bancorp	$49.68 million	0.78	$6.02 million	$0.24	75.21

Sturgis Bancorp has higher revenue and earnings than Ballston Spa Bancorp.

Summary

Sturgis Bancorp beats Ballston Spa Bancorp on 6 of the 9 factors compared between the two stocks.

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.

About Sturgis Bancorp

Sturgis Bancorp, Inc. operates as the bank holding company for Sturgis Bank & Trust Company that provides banking products and services in Michigan, the United States. The company offers checking, savings and health savings, and money market accounts; and certificates of deposit and individual retirement accounts. It also provides mortgage, automobile, savings secured, personal, home equity, equipment and machinery, government supported, and commercial real estate loans, as well as home equity lines of credit and business lines of credit; and credit cards. In addition, the company offers private banking, cashier checks, wire transfers, foreign drafts and foreign currency, overdraft protection, night depository, and notary services, as well as safe deposit boxes and residential mortgages. Further, it provides direct deposit, remote deposit capture, Visa check card, and checks reorder services; and investment and financial-advisory services, as well as commercial and consumer insurance and title insurance products. Additionally, the company offers estate and asset management services, such as estate settlements, trust administration, record keeping, investment management, and custody services; cash and treasury management; and online and mobile banking, bill pay, and mobile wallet services. It operates through 14 bank facilities and 4 full service standalone ATMs located in 12 communities in Michigan. Sturgis Bancorp, Inc. was founded in 1905 and is headquartered in Sturgis, Michigan.