Critical Survey: Oak Valley Bancorp (NASDAQ:OVLY) and Glacier Bancorp (NYSE:GBCI)

Oak Valley Bancorp (NASDAQ:OVLY) and Glacier Bancorp (NYSE:GBCI) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.

Earnings and Valuation

This table compares Oak Valley Bancorp and Glacier Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oak Valley Bancorp	$83.84 million	3.35	$23.91 million	$2.82	11.83
Glacier Bancorp	$1.44 billion	3.88	$239.03 million	$2.44	17.53

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

Dividends

Oak Valley Bancorp pays an annual dividend of $0.75 per share and has a dividend yield of 2.2%. Glacier Bancorp pays an annual dividend of $1.40 per share and has a dividend yield of 3.3%. Oak Valley Bancorp pays out 26.6% of its earnings in the form of a dividend. Glacier Bancorp pays out 57.4% 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. Oak Valley Bancorp has increased its dividend for 11 consecutive years.

Volatility & Risk

Oak Valley Bancorp has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500. Comparatively, Glacier Bancorp has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Institutional & Insider Ownership

30.9% of Oak Valley Bancorp shares are owned by institutional investors. Comparatively, 80.2% of Glacier Bancorp shares are owned by institutional investors. 13.9% of Oak Valley Bancorp shares are owned by insiders. Comparatively, 0.5% of Glacier Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Oak Valley Bancorp and Glacier Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oak Valley Bancorp	24.05%	11.31%	1.17%
Glacier Bancorp	19.72%	7.97%	1.05%

Analyst Ratings

This is a breakdown of recent ratings for Oak Valley Bancorp and Glacier Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oak Valley Bancorp	0	0	1	0	3.00
Glacier Bancorp	1	2	5	0	2.50

Glacier Bancorp has a consensus price target of $55.17, indicating a potential upside of 28.94%. Given Glacier Bancorp’s higher probable upside, analysts plainly believe Glacier Bancorp is more favorable than Oak Valley Bancorp.

Summary

Glacier Bancorp beats Oak Valley Bancorp on 9 of the 17 factors compared between the two stocks.

About Oak Valley Bancorp

Oak Valley Bancorp operates as the bank holding company for Oak Valley Community Bank that provides a range of commercial banking services to individuals and small to medium-sized businesses in the Central Valley and the Eastern Sierras. The company's deposits products include checking and savings, money market, health savings, and individual retirement accounts, as well as certificates of deposit. It also offers commercial real estate loans, commercial business lending and trade finance, and small business administration lending, as well as consumer loans, including automobile loans, home mortgages, credit lines, and other personal loans. In addition, the company provides online and mobile banking, remote deposit capture, merchant, night depository, extended hours, wire transfer of funds, note collection services, and automated teller machines. The company was incorporated in 1990 and is headquartered in Oakdale, California.

About Glacier Bancorp

Glacier Bancorp, Inc. operates as the bank holding company for Glacier Bank that provides commercial banking services to individuals, small to medium-sized businesses, community organizations, and public entities in the United States. It offers non-interest bearing deposit and interest bearing deposit accounts, such as negotiable order of withdrawal and demand deposit accounts, savings accounts, money market deposit accounts, fixed rate certificates of deposit, negotiated-rate jumbo certificates, and individual retirement accounts. The company also provides construction and permanent loans on residential real estate; consumer land or lot acquisition loans; unimproved land and land development loans; and residential builder guidance lines comprising pre-sold and spec-home construction, and lot acquisition loans. In addition, it offers commercial real estate loans to purchase, construct, and finance commercial real estate properties; consumer loans secured by real estate, automobiles, or other assets; paycheck protection program loans; home equity loans consisting of junior lien mortgages, and first and junior lien lines of credit secured by owner-occupied 1-4 family residences; and agriculture loans. Further, the company provides mortgage origination and loan servicing services. It has 224 locations, including 188 branches and 36 loan or administration offices in 75 counties within 8 states comprising Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona, and Nevada. The company was founded in 1955 and is headquartered in Kalispell, Montana.