Contrasting Oxford Bank (OTCMKTS:OXBC) & MainStreet Bank (NASDAQ:MNSB)

MainStreet Bank (NASDAQ:MNSB) and Oxford Bank (OTCMKTS:OXBC) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.

Insider and Institutional Ownership

52.3% of MainStreet Bank shares are held by institutional investors. Comparatively, 4.5% of Oxford Bank shares are held by institutional investors. 9.3% of MainStreet Bank shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares MainStreet Bank and Oxford Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MainStreet Bank	-3.32%	6.05%	0.52%
Oxford Bank	17.14%	N/A	N/A

Valuation and Earnings

This table compares MainStreet Bank and Oxford Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MainStreet Bank	$137.87 million	1.12	-$9.98 million	($0.90)	-22.26
Oxford Bank	$57.89 million	1.77	$9.96 million	$4.20	9.88

Oxford Bank has lower revenue, but higher earnings than MainStreet Bank. MainStreet Bank is trading at a lower price-to-earnings ratio than Oxford Bank, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for MainStreet Bank and Oxford Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MainStreet Bank	1	1	0	0	1.50
Oxford Bank	0	0	0	0	0.00

Volatility & Risk

MainStreet Bank has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500. Comparatively, Oxford Bank has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500.

Summary

MainStreet Bank beats Oxford Bank on 7 of the 12 factors compared between the two stocks.

About MainStreet Bank

MainStreet Bancshares, Inc. operates as the bank holding company for MainStreet Bank that provides various banking products and services for individuals, small to medium-sized businesses, and professional service organizations. The company offers demand, NOW, money market, savings, and sweep accounts, as well as certificates of deposit; business and consumer checking, interest-bearing checking, business account analysis, and other depository services; and cash management, wire transfer, check imaging, bill pay, remote deposit capture, and courier services. It also provides commercial loans, include government contract receivables, plant and equipment, general working capital, contract administration, and acquisition loans; commercial real estate, real estate construction, and residential real estate loans; and consumer loans comprising term loans and overdraft protection, as well as debit and credit cards. In addition, the company offers deposit insurance solutions; remote deposit of checks; and internet bill payment, online cash management, and online and mobile banking services. It operates in Herndon, Fairfax, McLean, Leesburg, Clarendon, and Washington D.C., as well as automated teller machines. The company was incorporated in 2003 and is headquartered in Fairfax, Virginia.

About Oxford Bank

Oxford Bank Corporation provides banking products and services to various customers in Michigan. Its deposit products include savings, checking, and individual retirement accounts, as well as certificates of deposit. The company's loan portfolio comprises home mortgage, home equity, auto, student, term, commercial real estate, and small business administration loans, as well as lines of credit. It also offers cash management, merchant card, remote deposit capture, payroll, overdraft protection, wire transfer, night depository, and notary services, as well as safe deposit box and interactive teller machine services; online, telephone, and mobile banking services; debit and credit cards; and insurance products. The company operates its branches in Clarkston, Davison, Dryden, Lake Orion, Ortonville, Oxford, and Oakland. Oxford Bank Corporation was founded in 1884 and is based in Oxford, Michigan.