Head-To-Head Survey: Glen Burnie Bancorp (NASDAQ:GLBZ) vs. Financial Institutions (NASDAQ:FISI)

Financial Institutions (NASDAQ:FISI) and Glen Burnie Bancorp (NASDAQ:GLBZ) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Financial Institutions and Glen Burnie Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Financial Institutions	0	2	2	0	2.50
Glen Burnie Bancorp	1	0	0	0	1.00

Financial Institutions presently has a consensus price target of $45.00, suggesting a potential upside of 8.04%. Given Financial Institutions’ stronger consensus rating and higher probable upside, analysts plainly believe Financial Institutions is more favorable than Glen Burnie Bancorp.

Earnings and Valuation

This table compares Financial Institutions and Glen Burnie Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Financial Institutions	$377.94 million	2.17	$74.87 million	$4.03	10.33
Glen Burnie Bancorp	$11.83 million	1.12	-$110,000.00	($0.05)	-90.48

Financial Institutions has higher revenue and earnings than Glen Burnie Bancorp. Glen Burnie Bancorp is trading at a lower price-to-earnings ratio than Financial Institutions, indicating that it is currently the more affordable of the two stocks.

Dividends

Financial Institutions pays an annual dividend of $1.28 per share and has a dividend yield of 3.1%. Glen Burnie Bancorp pays an annual dividend of $0.10 per share and has a dividend yield of 2.2%. Financial Institutions pays out 31.8% of its earnings in the form of a dividend. Glen Burnie Bancorp pays out -200.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Financial Institutions has increased its dividend for 1 consecutive years. Financial Institutions is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Financial Institutions has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Glen Burnie Bancorp has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500.

Profitability

This table compares Financial Institutions and Glen Burnie Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Financial Institutions	21.78%	13.45%	1.31%
Glen Burnie Bancorp	0.16%	0.14%	0.01%

Institutional and Insider Ownership

60.5% of Financial Institutions shares are owned by institutional investors. Comparatively, 9.8% of Glen Burnie Bancorp shares are owned by institutional investors. 2.4% of Financial Institutions shares are owned by company insiders. Comparatively, 14.5% of Glen Burnie Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Financial Institutions beats Glen Burnie Bancorp on 14 of the 17 factors compared between the two stocks.

About Financial Institutions

Financial Institutions, Inc. operates as a holding company for the Five Star Bank, a chartered bank that provides banking and financial services to individuals, municipalities, and businesses in New York. The company provides checking and savings account programs, including money market accounts, certificates of deposit, sweep investments, and individual retirement and other qualified plan accounts, as well as NOW accounts. Its loan products include term loans and lines of credit; short and medium-term commercial loans for working capital, business expansion, and purchase of equipment; commercial business loans to the agricultural industry; commercial mortgage loans; one-to-four family residential mortgage loans, home improvement loans, closed-end home equity loans, and home equity lines of credit; and consumer loans, such as automobile, secured installment, and personal loans. The company offers personal insurance products, including automobile, homeowners, boat, recreational vehicle, landlord, and umbrella coverage; commercial insurance comprising property, liability, automobile, inland marine, workers compensation, bonds, crop, and umbrella insurance products; and financial services, such as life and disability insurance, medicare supplements, long-term care, annuities, mutual funds, and retirement programs. In addition, it offers customized investment advisory, wealth management, investment consulting, and retirement plan services, as well as operates a real estate investment trust that holds residential mortgages and commercial real estate loans. Financial Institutions, Inc. was founded in 1817 and is headquartered in Warsaw, New York.

About Glen Burnie Bancorp

Glen Burnie Bancorp operates as the bank holding company for The Bank of Glen Burnie that provides commercial and retail banking services to individuals, associations, partnerships, and corporations. The company offers savings accounts, money market deposit accounts, demand deposit accounts, NOW checking accounts, IRA and SEP accounts, and certificates of deposit. It also provides residential and commercial real estate, construction, land acquisition and development, and secured and unsecured commercial loans, as well as consumer instalment lending, such as indirect automobile lending services; and residential first and second mortgage loans, home equity lines of credit, and commercial mortgage loans. In addition, the company offers safe deposit boxes, money orders, night depositories, automated clearinghouse transactions, wire transfers, and automated teller machine (ATM) services, as well as electronic banking services, such as telephone and online banking, bill pay, card management and control, mobile app, merchant source capture, mobile deposit capture, Zelle, etc. Further, it provides treasury services, including wire transfer and ACH services, and debit cards. Additionally, the company engages in the acquisition and disposition of other real estate properties. It serves customers in northern Anne Arundel county and surrounding areas from its main office and branch in Glen Burnie, Maryland; and branch offices in Odenton, Riviera Beach, Crownsville, Severn, Linthicum, and Severna Park, Maryland. The company also operates a remote ATM located in Pasadena, Maryland. The company was founded in 1949 and is based in Glen Burnie, Maryland.