Critical Review: Sturgis Bancorp (OTCMKTS:STBI) versus Community Capital Bancshares (OTCMKTS:ALBY)

Valuation & Earnings

This table compares Sturgis Bancorp and Community Capital Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sturgis Bancorp	$49.68 million	0.77	$6.02 million	$2.90	6.14
Community Capital Bancshares	$15.03 million	2.29	$4.45 million	$3.56	7.46

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

Dividends

Sturgis Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 3.8%. Community Capital Bancshares pays an annual dividend of $2.00 per share and has a dividend yield of 7.5%. Sturgis Bancorp pays out 23.4% of its earnings in the form of a dividend. Community Capital Bancshares pays out 56.2% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sturgis Bancorp	0.94%	N/A	N/A
Community Capital Bancshares	N/A	N/A	N/A

Volatility and Risk

Sturgis Bancorp has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, Community Capital Bancshares has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Summary

Sturgis Bancorp beats Community Capital Bancshares on 5 of the 9 factors compared between the two stocks.

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.

About Community Capital Bancshares

Community Capital Bancshares, Inc. operates as the holding company for AB&T that provides various banking products and services to individual and corporate customers. The company accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposits. Its loan products include commercial and residential real estate, commercial, financial, agricultural, consumer installment, overdrafts and other revolving credit, and educational loans. The company also offers money transfer, bill pay, remote deposit capture, ACH origination, and merchant services, as well as online, mobile, and text message banking services. The company was incorporated in 1998 and is based in Albany, Georgia.