Critical Review: Sturgis Bancorp (OTCMKTS:STBI) & Community Investors Bancorp (OTCMKTS:CIBN)

Volatility and Risk

Community Investors Bancorp has a beta of 0.12, indicating that its share price is 88% less volatile than the S&P 500. Comparatively, Sturgis Bancorp has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500.

Dividends

Community Investors Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Sturgis Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 3.4%. Community Investors Bancorp pays out 17.4% of its earnings in the form of a dividend. Sturgis Bancorp pays out 19.8% 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.

Valuation and Earnings

This table compares Community Investors Bancorp and Sturgis Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Investors Bancorp	$19.58 million	N/A	$1.82 million	$2.30	8.96
Sturgis Bancorp	$56.82 million	0.77	$2.84 million	$3.43	5.91

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

Profitability

This table compares Community Investors Bancorp and Sturgis Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Investors Bancorp	9.29%	N/A	N/A
Sturgis Bancorp	12.73%	N/A	N/A

Summary

Sturgis Bancorp beats Community Investors Bancorp on 6 of the 8 factors compared between the two stocks.

About Community Investors Bancorp

Community Investors Bancorp, Inc. operates as a thrift holding company for First Federal Community Bank of Bucyrus that engages in the provision of banking and financial services to individual and corporate customers in northern Ohio. The company offers deposit accounts, including demand, NOW, checking, savings, money market, Christmas club, health savings, certificates of deposit, time deposit, and individual retirement accounts. It also provides consumer loans, home equity loans, home equity line of credit, auto and RV loans, residential real estate loans, mortgage loans, and construction loans for personal use; and business loans, lines of credit, term loans, ag loans, nonresidential real estate loans, secured loans, credit cards, commercial investment real estate, construction loans, and equipment financing for business use. In addition, the company offers online and mobile banking, bill payments, e-statements, remote deposit capture, cash management, mobile and night deposits, debit cards, overdraft protection, safety deposit boxes, telephone banking, positive pay/check reconciliation, direct deposit, and ACH and payroll services. Community Investors Bancorp, Inc. was founded in 1888 and is based in Bucyrus, Ohio.

About Sturgis Bancorp

Sturgis Bancorp, Inc. operates as the bank holding company for Sturgis Bank & Trust Company that provides banking products and services in Michigan, the United States. The company offers checking, savings and health savings, and money market accounts; and certificates of deposit and individual retirement accounts. It also provides mortgage, automobile, savings secured, personal, home equity, equipment and machinery, government supported, and commercial real estate loans, as well as home equity lines of credit and business lines of credit; and credit cards. In addition, the company offers private banking, cashier checks, wire transfers, foreign drafts and foreign currency, overdraft protection, night depository, and notary services, as well as safe deposit boxes and residential mortgages. Further, it provides direct deposit, remote deposit capture, Visa check card, and checks reorder services; and investment and financial-advisory services, as well as commercial and consumer insurance and title insurance products. Additionally, the company offers estate and asset management services, such as estate settlements, trust administration, record keeping, investment management, and custody services; cash and treasury management; and online and mobile banking, bill pay, and mobile wallet services. It operates through 14 bank facilities and 4 full service standalone ATMs located in 12 communities in Michigan. Sturgis Bancorp, Inc. was founded in 1905 and is headquartered in Sturgis, Michigan.