Critical Comparison: Surrey Bancorp (OTCMKTS:SRYB) versus Ohio Valley Banc (NASDAQ:OVBC)

Institutional & Insider Ownership

22.1% of Ohio Valley Banc shares are held by institutional investors. Comparatively, 3.7% of Surrey Bancorp shares are held by institutional investors. 7.1% of Ohio Valley Banc shares are held by insiders. Comparatively, 33.7% of Surrey Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Ohio Valley Banc pays an annual dividend of $0.92 per share and has a dividend yield of 2.4%. Surrey Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. Ohio Valley Banc pays out 34.3% of its earnings in the form of a dividend. Surrey Bancorp pays out 31.6% 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. Surrey Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Ohio Valley Banc has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500. Comparatively, Surrey Bancorp has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Profitability

This table compares Ohio Valley Banc and Surrey Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ohio Valley Banc	12.37%	7.44%	0.77%
Surrey Bancorp	37.97%	N/A	N/A

Valuation & Earnings

This table compares Ohio Valley Banc and Surrey Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ohio Valley Banc	$61.98 million	2.89	$11.00 million	$2.68	14.18
Surrey Bancorp	$16.20 million	4.23	$5.10 million	$1.52	10.99

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

Summary

Ohio Valley Banc beats Surrey Bancorp on 7 of the 13 factors compared between the two stocks.

About Ohio Valley Banc

Ohio Valley Banc Corp. operates as the bank holding company for The Ohio Valley Bank Company that provides commercial and consumer banking products and services. The company operates in two segments, Banking and Consumer Finance. It accepts various deposit products, including checking, savings, time, and money market accounts, as well as individual retirement accounts, demand deposits, NOW accounts, and certificates of deposit. The company also provides various residential real estate loans, including one-to four-family residential mortgages; commercial loans for securing equipment, inventory, stock, commercial real estate, and rental property; and consumer loans secured by automobiles, mobile homes, recreational vehicles, and other personal property, as well as personal loans, unsecured credit card receivables, floor plan and student loans, and construction loans. In addition, it offers safe deposit box, wire transfer, credit card, home equity loans, and Internet banking services; and financial management online services, such as cash management and news updates related to repossession auctions, current rates, and general bank news. Further, the company provides automatic teller machines (ATMs), consumer finance, seasonal tax preparation, commercial property, and various liability insurance services, as well as trust and online-only consumer direct mortgage services. The company owns and operates ATMs, including off-site ATMs. It operates offices in Ohio and West Virginia. The company was founded in 1872 and is based in Gallipolis, Ohio.

About Surrey Bancorp

Surrey BanCorp engages in the provision of banking solutions through its subsidiaries, Surrey Bank & Trust . It offers checking accounts, savings, deposit services, mortgages, real estate loans, commercial credit products, business checking, and electronic banking. The company was founded on May 1, 2003 and is headquartered in Mount Airy, NC.