Critical Comparison: JSB Financial (OTCMKTS:JFWV) and American Bank (OTCMKTS:AMBK)

Profitability

This table compares JSB Financial and American Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JSB Financial	N/A	N/A	N/A
American Bank	24.26%	N/A	N/A

Institutional & Insider Ownership

0.1% of JSB Financial shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares JSB Financial and American Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JSB Financial	N/A	N/A	$4.20 million	$16.17	7.61
American Bank	$59.94 million	1.99	$13.54 million	$2.33	7.79

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

Volatility & Risk

JSB Financial has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500. Comparatively, American Bank has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500.

Dividends

JSB Financial pays an annual dividend of $2.90 per share and has a dividend yield of 2.4%. American Bank pays an annual dividend of $0.64 per share and has a dividend yield of 3.5%. JSB Financial pays out 17.9% of its earnings in the form of a dividend. American Bank pays out 27.5% 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.

Summary

American Bank beats JSB Financial on 5 of the 9 factors compared between the two stocks.

About JSB Financial

JSB Financial Inc. operates as the bank holding company for Jefferson Security Bank that provides various banking products and services to individuals, agricultural businesses, small and medium-sized businesses, local government entities, and non-profit organizations. It accepts various deposit products, such as checking, savings, money market, individual retirement, overdraft protection, and sweep accounts, as well as certificates of deposit. The company's loan portfolio includes personal and vehicle, mortgage, construction, commercial, and home equity loans. It also offers ATM, online and mobile banking, bill pay, paperless statements, cash management, remote deposit capture, merchant, and credit and debit card services. The company was founded in 1869 and is headquartered in Shepherdstown, West Virginia.

About American Bank

American Bank Incorporated operates as the bank holding company for American Bank that provides various banking products and services to consumer, business, institutional, and governmental customers. It accepts a range of interest-bearing checking and money market accounts, savings accounts, certificates of deposit, and individual retirement accounts. The company also offers commercial, industrial, and other loans; commercial mortgage loans; commercial construction loans; residential mortgage loans; and consumer loans, including personal term loans, personal credit lines, automobile loans, home equity loans, and home equity lines of credit and loans. In addition, it provides online or mobile banking, automated teller machine, safe deposit box rental, and wire transfer services, as well as sells checks and checkbooks, and purchases investment securities. The company operates an office located in Allentown, Pennsylvania; and a loan production office in Blue Bell, Pennsylvania. The company was founded in 1997 and is based in Allentown, Pennsylvania.