Comparing Malaga Financial (OTCMKTS:MLGF) and Farmers & Merchants Bank of Long Beach (OTCMKTS:FMBL)

Profitability

This table compares Farmers & Merchants Bank of Long Beach and Malaga Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmers & Merchants Bank of Long Beach	12.08%	3.84%	0.46%
Malaga Financial	N/A	N/A	N/A

Volatility & Risk

Farmers & Merchants Bank of Long Beach has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500. Comparatively, Malaga Financial has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500.

Insider & Institutional Ownership

7.6% of Farmers & Merchants Bank of Long Beach shares are held by institutional investors. Comparatively, 1.1% of Malaga Financial shares are held by institutional investors. 12.8% of Farmers & Merchants Bank of Long Beach shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Farmers & Merchants Bank of Long Beach pays an annual dividend of $112.00 per share and has a dividend yield of 1.4%. Malaga Financial pays an annual dividend of $1.00 per share and has a dividend yield of 4.6%. Farmers & Merchants Bank of Long Beach pays out 26.1% of its earnings in the form of a dividend. Malaga Financial pays out 43.5% 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.

Valuation & Earnings

This table compares Farmers & Merchants Bank of Long Beach and Malaga Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmers & Merchants Bank of Long Beach	$459.33 million	2.08	$44.88 million	$428.48	18.30
Malaga Financial	N/A	N/A	$22.65 million	$2.30	9.50

Farmers & Merchants Bank of Long Beach has higher revenue and earnings than Malaga Financial. Malaga Financial is trading at a lower price-to-earnings ratio than Farmers & Merchants Bank of Long Beach, indicating that it is currently the more affordable of the two stocks.

Summary

Farmers & Merchants Bank of Long Beach beats Malaga Financial on 11 of the 12 factors compared between the two stocks.

About Farmers & Merchants Bank of Long Beach

Farmers & Merchants Bank of Long Beach provides various banking products and services to individuals, professionals, and small to medium-sized businesses in Los Angeles, Orange, and Santa Barbara Counties. It offers checking, savings, Christmas club savings, health savings, market rate savings, and money market accounts; demand and time deposits; certificates of deposit; and individual retirement account. The company also provides personal, home, commercial real estate, real estate and construction, and commercial business loans, as well as lines of credit; financing for residential loans comprising single-family and multifamily loans; and credit and debit cards. In addition, it offers account management, receivables and payables, and risk management services; commercial lending services; and faith-based and healthcare banking services, as well as online and mobile banking services. Farmers & Merchants Bank of Long Beach was founded in 1907 and is headquartered in Long Beach, California.

About Malaga Financial

Malaga Financial Corporation operates as the holding company for Malaga Bank that provides various community banking products and services to personal and business customers. It offers checking, savings, NOW, and money market accounts, certificates of deposits, business banking, consumer, and demand deposits. The company also provides commercial real estate, single and multi-family residential mortgage, consumer, 14-unit investment property, construction, personal, and business loans; home equity lines of credit; and certificates of deposit. In addition, it offers coupon redemption, direct deposit, overdraft lines of credit, telephone transfers, U.S. savings bond redemption, and wire transfer services; and ATM and VISA debit cards, bank by mail, medallion signature guarantee, night depository, notary, safe deposit boxes, and trust deed note collection services. Further, the company provides online banking services, including bill payer, e-statements, and mobile banking services. The company was incorporated in 2002 and is headquartered in Palos Verdes Estates, California.