Financial Contrast: Auburn National Bancorporation (NASDAQ:AUBN) and Affinity Bancshares (NASDAQ:AFBI)

Auburn National Bancorporation (NASDAQ:AUBN) and Affinity Bancshares (NASDAQ:AFBI) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Risk and Volatility

Auburn National Bancorporation has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Affinity Bancshares has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500.

Insider & Institutional Ownership

39.5% of Auburn National Bancorporation shares are owned by institutional investors. Comparatively, 39.3% of Affinity Bancshares shares are owned by institutional investors. 25.1% of Auburn National Bancorporation shares are owned by insiders. Comparatively, 12.4% of Affinity Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Auburn National Bancorporation and Affinity Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Auburn National Bancorporation	16.42%	8.48%	0.71%
Affinity Bancshares	14.55%	6.61%	0.91%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Auburn National Bancorporation and Affinity Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Auburn National Bancorporation	0	1	0	0	2.00
Affinity Bancshares	0	1	0	0	2.00

Earnings and Valuation

This table compares Auburn National Bancorporation and Affinity Bancshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Auburn National Bancorporation	$42.21 million	2.14	$6.40 million	$2.05	12.62
Affinity Bancshares	$49.99 million	2.51	$5.44 million	$1.15	17.70

Auburn National Bancorporation has higher earnings, but lower revenue than Affinity Bancshares. Auburn National Bancorporation is trading at a lower price-to-earnings ratio than Affinity Bancshares, indicating that it is currently the more affordable of the two stocks.

Summary

Auburn National Bancorporation beats Affinity Bancshares on 7 of the 11 factors compared between the two stocks.

About Auburn National Bancorporation

Auburn National Bancorporation, Inc. operates as the bank holding company for AuburnBank that provides various banking products and services in East Alabama. The company offers checking, savings, and transaction deposit accounts, as well as certificates of deposit. It also provides commercial, financial, agricultural, real estate construction, and consumer loan products; and other financial services. In addition, the company offers automated teller services; debit cards; online banking, bill payment, and other electronic banking services; and safe deposit boxes. Auburn National Bancorporation, Inc. was founded in 1907 and is headquartered in Auburn, Alabama.

About Affinity Bancshares

Affinity Bancshares, Inc. operates as the holding company for Affinity Bank that provides various banking products and services in Georgia. The company offers various deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts, as well as Kasasa (rewards) deposit program for checking accounts with interest rates or cash-back rewards. It offers commercial and residential real estate, commercial and industrial, residential mortgage, construction and land, and consumer loans, as well as balloon and adjustable-rate loans. In addition, the company invests in U.S. treasury securities; securities issued by the U.S. government and its agencies, or government sponsored enterprises, including mortgage-backed securities and collateralized mortgage obligations; corporate and municipal bonds; certificates of deposit in other financial institutions; and federal and money market funds. Further, it operates a virtual bank under the name FitnessBank, which accepts deposits and provides higher interest rates based on customers meeting certain fitness goals. Affinity Bancshares, Inc. was founded in 1928 and is headquartered in Covington, Georgia.