Head to Head Comparison: Malaga Financial (OTCMKTS:MLGF) & Summit State Bank (NASDAQ:SSBI)

Malaga Financial (OTCMKTS:MLGF) and Summit State Bank (NASDAQ:SSBI) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Malaga Financial and Summit State Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Malaga Financial	N/A	N/A	N/A
Summit State Bank	11.55%	N/A	N/A

Insider & Institutional Ownership

1.2% of Malaga Financial shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Malaga Financial and Summit State Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Malaga Financial	N/A	N/A	$21.55 million	$2.18	9.82
Summit State Bank	$58.82 million	1.58	$6.80 million	$1.01	13.55

Malaga Financial has higher earnings, but lower revenue than Summit State Bank. Malaga Financial is trading at a lower price-to-earnings ratio than Summit State Bank, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Malaga Financial has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500. Comparatively, Summit State Bank has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Malaga Financial and Summit State Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Malaga Financial	0	0	0	0	0.00
Summit State Bank	0	1	0	0	2.00

Summary

Summit State Bank beats Malaga Financial on 5 of the 8 factors compared between the two stocks.

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.

About Summit State Bank

Summit State Bank engages in providing an array of financial services to small and medium-sized businesses, their owners and employees, entrepreneurs, high net worth families, foundations, estates, and individual consumers. It specializes in business services, personal accounts, nonprofit programs, and mobile banking ranging from lending, checking, merchant, eBanking, automated teller machines, equity loans, and others. The company was founded on December 20, 1982 and is headquartered in Santa Rosa, CA.