Financial Comparison: Codorus Valley Bancorp (CVLY) and Farmers & Merchants Bancorp, Inc. (OH) (FMAO)

Codorus Valley Bancorp (NASDAQ:CVLY) and Farmers & Merchants Bancorp, Inc. (OH) (NASDAQ:FMAO) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Codorus Valley Bancorp and Farmers & Merchants Bancorp, Inc. (OH), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Codorus Valley Bancorp 0 0 0 0 N/A
Farmers & Merchants Bancorp, Inc. (OH) 0 1 0 0 2.00

Dividends

Codorus Valley Bancorp pays an annual dividend of $0.62 per share and has a dividend yield of 2.1%. Farmers & Merchants Bancorp, Inc. (OH) pays an annual dividend of $0.56 per share and has a dividend yield of 1.3%. Farmers & Merchants Bancorp, Inc. (OH) pays out 40.6% of its earnings in the form of a dividend. Codorus Valley Bancorp has raised its dividend for 6 consecutive years. Codorus Valley Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Codorus Valley Bancorp and Farmers & Merchants Bancorp, Inc. (OH)’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Codorus Valley Bancorp $81.94 million 3.28 $12.00 million N/A N/A
Farmers & Merchants Bancorp, Inc. (OH) $51.98 million 7.54 $12.72 million $1.38 30.67

Farmers & Merchants Bancorp, Inc. (OH) has lower revenue, but higher earnings than Codorus Valley Bancorp.

Volatility and Risk

Codorus Valley Bancorp has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Farmers & Merchants Bancorp, Inc. (OH) has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500.

Profitability

This table compares Codorus Valley Bancorp and Farmers & Merchants Bancorp, Inc. (OH)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Codorus Valley Bancorp 17.13% 10.71% 1.03%
Farmers & Merchants Bancorp, Inc. (OH) 26.50% 10.78% 1.31%

Insider & Institutional Ownership

53.2% of Codorus Valley Bancorp shares are held by institutional investors. Comparatively, 15.7% of Farmers & Merchants Bancorp, Inc. (OH) shares are held by institutional investors. 3.9% of Codorus Valley Bancorp shares are held by company insiders. Comparatively, 4.5% of Farmers & Merchants Bancorp, Inc. (OH) 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.

Summary

Farmers & Merchants Bancorp, Inc. (OH) beats Codorus Valley Bancorp on 7 of the 13 factors compared between the two stocks.

About Codorus Valley Bancorp

Codorus Valley Bancorp, Inc. operates as the bank holding company for the PeoplesBank that provides various business and consumer banking services. The company accepts demand, money market, time, and savings deposits. It also offers commercial real estate loans; industrial loans; construction loans; commercial loans, such as builder and developer, commercial and residential real estate investor, hotel/motel, wholesale and retail, agriculture, manufacturing, and other loans; and consumer loans, including residential mortgage, home equity, and other loans. In addition, it provides personal and mortgage banking, wealth management, and real estate settlement services; and sells non-deposit investment products. As of December 31, 2017, the company operated 26 full service financial centers located in York, Cumberland, and Lancaster counties in Pennsylvania, as well as Baltimore, Harford, and Carroll counties in Maryland. Codorus Valley Bancorp, Inc. was founded in 1864 and is headquartered in York, Pennsylvania.

About Farmers & Merchants Bancorp, Inc. (OH)

Farmers & Merchants Bancorp, Inc. operates as the bank holding company for The Farmers & Merchants State Bank that provides commercial banking, retail banking, and other financial products and services to individuals and small businesses in northwest Ohio and northeast Indiana. The company offers checking accounts; savings and time deposits, including certificates of deposits; and custodial services for individual retirement accounts and health savings accounts. It also provides commercial, agricultural, and residential mortgage, as well as consumer and credit card lending products; loans for farm land, farm equipment, and livestock; operating loans for seeds, fertilizers, and feeds; home improvements loans; and loans for autos, trucks, recreational vehicles, and motorcycles. In addition, the company offers commercial real estate loans, such as operation lines of credit and machinery purchase loans; and agricultural and consumer real estate, commercial and industrial, agricultural, and consumer loans, as well as industrial development bonds. Further, it provides automated teller machine services; and online banking, remote deposit capture or electronic deposit processing, merchant credit card, and mobile banking services. As of February 8, 2018, the company operated through 25 offices. Farmers & Merchants Bancorp, Inc. was founded in 1897 and is based in Archbold, Ohio.

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