Financial Contrast: Cortland Bancorp (OTCMKTS:CLDB) vs. Provident Bancorp (OTCMKTS:PVBC)

Cortland Bancorp (OTCMKTS:CLDB) and Provident Bancorp (NASDAQ:PVBC) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.

Dividends

Cortland Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 4.4%. Provident Bancorp pays an annual dividend of $0.12 per share and has a dividend yield of 1.5%.

Volatility & Risk

Cortland Bancorp has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, Provident Bancorp has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Institutional & Insider Ownership

1.6% of Cortland Bancorp shares are held by institutional investors. Comparatively, 38.9% of Provident Bancorp shares are held by institutional investors. 9.5% of Cortland Bancorp shares are held by insiders. Comparatively, 6.2% of Provident Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Cortland Bancorp and Provident Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cortland Bancorp 0 0 0 0 N/A
Provident Bancorp 0 1 0 0 2.00

Provident Bancorp has a consensus target price of $12.00, suggesting a potential upside of 54.04%. Given Provident Bancorp’s higher possible upside, analysts plainly believe Provident Bancorp is more favorable than Cortland Bancorp.

Profitability

This table compares Cortland Bancorp and Provident Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cortland Bancorp 26.40% 14.41% 1.32%
Provident Bancorp 17.06% 7.45% 0.95%

Earnings and Valuation

This table compares Cortland Bancorp and Provident Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cortland Bancorp $33.46 million 1.62 $8.84 million N/A N/A
Provident Bancorp $55.65 million 2.73 $10.81 million N/A N/A

Provident Bancorp has higher revenue and earnings than Cortland Bancorp.

Summary

Provident Bancorp beats Cortland Bancorp on 7 of the 12 factors compared between the two stocks.

About Cortland Bancorp

Cortland Bancorp operates as the bank holding company for The Cortland Savings and Banking Company that provides commercial and retail banking services in Northeastern Ohio and Western Pennsylvania. Its deposit products include demand deposits, savings, money market, time deposit, and checking accounts. The company's loan portfolio comprises commercial loans consisting of commercial, financial loans, real estate construction and development loans, commercial real estate loans, small business lending, and trade financing; and consumer loans, such as residential real estate, home equity, and installment loans. It also provides brokerage and investment services; asset management services; night depository services, automated teller services, safe deposit boxes, and other services; and Internet and mobile banking options. As of February 4, 2019, it operated through 14 offices located in the Summit, Trumbull, Mahoning, Portage, and Ashtabula counties in Northeast Ohio. The company was founded in 1892 and is headquartered in Cortland, Ohio.

About Provident Bancorp

Provident Bancorp, Inc. is a Maryland corporation that was formed in 2019 to be the successor corporation to Provident Bancorp, Inc., a Massachusetts corporation, and the holding company for The Provident Bank. The Provident Bank, a subsidiary of Provident Bancorp, Inc. is an innovative, commercial bank that finds solutions for its business and private clients.

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