Financial Review: M&F Bancorp (OTCMKTS:MFBP) & Ohio Valley Banc (NASDAQ:OVBC)

Ohio Valley Banc (NASDAQ:OVBC – Get Rating) and M&F Bancorp (OTCMKTS:MFBP – Get Rating) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Ohio Valley Banc and M&F Bancorp, as reported by MarketBeat.com.

Earnings and Valuation

This table compares Ohio Valley Banc and M&F Bancorp’s gross revenue, earnings per share and valuation.

Ohio Valley Banc has higher revenue and earnings than M&F Bancorp.

Risk & Volatility

Ohio Valley Banc has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500. Comparatively, M&F Bancorp has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

Institutional and Insider Ownership

13.6% of Ohio Valley Banc shares are held by institutional investors. 3.6% of Ohio Valley Banc shares are held by company insiders. Comparatively, 2.9% of M&F 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.

Profitability

This table compares Ohio Valley Banc and M&F Bancorp’s net margins, return on equity and return on assets.

Dividends

Ohio Valley Banc pays an annual dividend of $0.84 per share and has a dividend yield of 2.7%. M&F Bancorp pays an annual dividend of $0.12 per share and has a dividend yield of 1.8%. Ohio Valley Banc pays out 32.6% of its earnings in the form of a dividend.

Summary

Ohio Valley Banc beats M&F Bancorp on 7 of the 9 factors compared between the two stocks.

About Ohio Valley Banc (Get Rating)

Ohio Valley Banc Corp. operates as the bank holding company for The Ohio Valley Bank Company that provides commercial and consumer banking products and services. The company operates in two segments, Banking and Consumer Finance. It accepts various deposit products, including checking, savings, time, and money market accounts, as well as individual retirement accounts, demand deposits, NOW accounts, and certificates of deposit. The company also provides various residential real estate loans, including one-to four-family residential mortgages; commercial loans for securing equipment, inventory, stock, commercial real estate, and rental property; and consumer loans secured by automobiles, mobile homes, recreational vehicles, and other personal property, as well as personal loans, unsecured credit card receivables, floor plan and student loans, and construction loans. In addition, it offers safe deposit boxes, wire transfers, credit card services, and Internet banking services; and financial management online services, such as cash management and news updates related to repossession auctions, current rates, and general bank news. Further, the company provides automatic teller machine (ATM) services, consumer finance, seasonal tax preparation services, and commercial property and various liability insurance services, as well as trust and online-only consumer direct mortgage services. It operates sixteen offices in Ohio and West Virginia; and six consumer finance offices in Ohio. The company owns and operates thirty- six ATMs, including twenty off-site ATMs. Ohio Valley Banc Corp. was founded in 1872 and is headquartered in Gallipolis, Ohio.

About M&F Bancorp (Get Rating)

M&F Bancorp, Inc. operates as a bank holding company for the Mechanics and Farmers Bank that provides consumer and commercial banking products and services in North Carolina. It offers deposit products, including demand deposits; checking, savings, and money market accounts, as well as certificates of deposit. The company also provides loans for commercial and residential real estate, and construction; and consumer loans, as well as ATM services. It operates seven branch offices in Durham, Raleigh, Charlotte, Greensboro, and Winston-Salem, North Carolina. The company was founded in 1907 and is headquartered in Durham, North Carolina.

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