Critical Contrast: American Business Bank (OTCMKTS:AMBZ) & Summit State Bank (OTCMKTS:SSBI)

American Business Bank (OTCMKTS:AMBZ) and Summit State Bank (NASDAQ:SSBI) 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.

Dividends

Summit State Bank pays an annual dividend of $0.48 per share and has a dividend yield of 4.0%. American Business Bank does not pay a dividend.

Analyst Ratings

This is a breakdown of recent ratings for American Business Bank and Summit State Bank, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Business Bank 0 0 0 0 N/A
Summit State Bank 0 0 0 0 N/A

Volatility and Risk

American Business Bank has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Summit State Bank has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.

Valuation and Earnings

This table compares American Business Bank and Summit State Bank’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Business Bank $74.09 million 3.57 $16.39 million N/A N/A
Summit State Bank $27.88 million 2.60 $5.83 million N/A N/A

American Business Bank has higher revenue and earnings than Summit State Bank.

Profitability

This table compares American Business Bank and Summit State Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Business Bank 25.37% N/A N/A
Summit State Bank 17.63% N/A N/A

Insider & Institutional Ownership

2.9% of American Business Bank shares are owned by institutional investors. Comparatively, 14.3% of Summit State Bank shares are owned by institutional investors. 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.

Summary

American Business Bank beats Summit State Bank on 5 of the 8 factors compared between the two stocks.

American Business Bank Company Profile

American Business Bank provides various banking and financial services to wholesalers, manufacturers, businesses, professionals, and non-profits in California. Its deposit products include checking, money market, savings, business demand deposit, business money market, special deposit, zero balance, and sweep accounts, as well as certificates of deposit. The company's loan products comprise personal loans, lines of credit, short term working capital lines, term loans, commercial/industrial real estate loans, and accounts receivable lines. It also offers various services, such as telephone notification, lock box processing, investment, courier, remote deposit, consulting, general business advice, investment banking, investment management, equipment leasing, residential mortgage lending, and professional referral services, as well as online banking services consisting of bill payment, fund transfer, account information, automatic clearing house origination, stop payment, and wire transfer services; and provides credit cards and ATM cards. In addition, the company offers international banking services, including international money transfer, letters of credit, foreign currency deposit, documentary and cleaning collection, and foreign currency exchange services. It operates through five loan production offices in Anaheim, Irvine, Torrance, the Warner Center, and Ontario. American Business Bank was founded in 1998 and is headquartered in Los Angeles, California.

Summit State Bank Company Profile

Summit State Bank provides various banking products and services to individuals and businesses primarily in Sonoma County, California. It offers personal and business checking, money market, sweep, savings, and demand accounts; time certificates of deposit; and specialized deposit accounts, such as professional, small business packaged, tiered, and Keogh and individual retirement accounts. The company also provides loans, including commercial loans and leases; lines of credit; commercial real estate, small business administration, residential mortgage, and construction loans; and home equity lines of credit, as well as term loans, credit lines to individuals, equipment loans, and business lines of credit. Its loan products also comprise loans for accounts receivable and inventory financing, loans to agriculture-related businesses, and equipment and expansion financing programs. In addition, the company provides Internet and telephone banking; and other services, including banking by appointment, online banking, direct payroll and social security deposits, letters of credit, access to national automated teller machine networks, courier, safe deposit boxes, night depository facilities, notary, travelers checks, lockbox, and banking by mail. Further, it offers cash management and electronic bill payment services. The company operates through five depository offices located in Santa Rosa, Rohnert Park, Healdsburg, and Petaluma, as well as loan production office in Roseville, California. Summit State Bank was founded in 1982 and is headquartered in Santa Rosa, California.

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