Critical Survey: GrandSouth Bancorporation (OTCMKTS:GRRB) & Dime Community Bancshares (NASDAQ:DCOM)

GrandSouth Bancorporation (OTCMKTS:GRRB) and Dime Community Bancshares (NASDAQ:DCOM) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for GrandSouth Bancorporation and Dime Community Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GrandSouth Bancorporation	0	0	0	0	0.00
Dime Community Bancshares	0	0	3	1	3.25

Dime Community Bancshares has a consensus price target of $36.88, suggesting a potential upside of 26.50%. Given Dime Community Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe Dime Community Bancshares is more favorable than GrandSouth Bancorporation.

Profitability

This table compares GrandSouth Bancorporation and Dime Community Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GrandSouth Bancorporation	N/A	N/A	N/A
Dime Community Bancshares	6.74%	6.90%	0.62%

Institutional and Insider Ownership

75.3% of Dime Community Bancshares shares are owned by institutional investors. 33.3% of GrandSouth Bancorporation shares are owned by company insiders. Comparatively, 7.1% of Dime Community Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares GrandSouth Bancorporation and Dime Community Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GrandSouth Bancorporation	N/A	N/A	N/A	N/A	N/A
Dime Community Bancshares	$646.19 million	1.98	$29.08 million	$0.84	34.70

Dime Community Bancshares has higher revenue and earnings than GrandSouth Bancorporation.

Summary

Dime Community Bancshares beats GrandSouth Bancorporation on 9 of the 10 factors compared between the two stocks.

About GrandSouth Bancorporation

GrandSouth Bancorporation operates as the bank holding company for GrandSouth Bank that provides banking services to individuals and businesses. It accepts checking accounts, savings accounts, money market accounts, various term certificates of deposit, and individual retirement accounts. The company also offers one-to-four family residential, commercial real estate, home equity and lines of credit, residential construction and other construction and land, and commercial loans; and consumer loans comprising loans secured by personal property, such as automobiles, marketable securities, and boats and motorcycles, as well as unsecured consumer debt. In addition, it invests in investment securities, as well as provides specialty floor plan lending to small auto dealerships under the CarBucks trade name. The company operates through eight branches across South Carolina. GrandSouth Bancorporation was founded in 1998 and is based in Greenville, South Carolina.

About Dime Community Bancshares

Dime Community Bancshares, Inc. operates as the holding company for Dime Community Bank that engages in the provision of various commercial banking and financial services. The company accepts time, savings, and demand deposits from the businesses, consumers, and local municipalities. It also offers commercial real estate loans; multi-family mortgage loans; residential mortgage loans; letters of credit; secured and unsecured commercial and consumer loans; lines of credit; home equity loans; and construction and land loans. In addition, the company invests in Federal Home Loan Bank, Federal National Mortgage Association, Government National Mortgage Association, and Federal Home Loan Mortgage Corporation mortgage-backed securities, collateralized mortgage obligations, and other asset backed securities; U.S. Treasury securities; New York state and local municipal obligations; U.S. government-sponsored enterprise securities; and corporate bonds. Further, it offers certificate of deposit account registry services and insured cash sweep programs; federal deposit insurance corporation insurance; merchant credit and debit card processing, automated teller machines, cash management services, lockbox processing, online banking services, remote deposit capture, safe deposit boxes, and individual retirement accounts; investment products and services through a third-party broker dealer; and title insurance broker services for small and medium sized businesses, and municipal and consumer relationships. The company was founded in 1910 and is headquartered in Hauppauge, New York.