Critical Analysis: Farmers & Merchants Bank of Long Beach (OTCMKTS:FMBL) vs. Oversea-Chinese Banking (OTCMKTS:OVCHY)

Volatility & Risk

Farmers & Merchants Bank of Long Beach has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500. Comparatively, Oversea-Chinese Banking has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Earnings and Valuation

This table compares Farmers & Merchants Bank of Long Beach and Oversea-Chinese Banking”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmers & Merchants Bank of Long Beach	$431.97 million	1.57	$70.01 million	$427.35	13.22
Oversea-Chinese Banking	$18.42 billion	2.96	$5.23 billion	N/A	N/A

Oversea-Chinese Banking has higher revenue and earnings than Farmers & Merchants Bank of Long Beach.

Dividends

Farmers & Merchants Bank of Long Beach pays an annual dividend of $112.00 per share and has a dividend yield of 2.0%. Oversea-Chinese Banking pays an annual dividend of $1.24 per share and has a dividend yield of 5.1%. Farmers & Merchants Bank of Long Beach pays out 26.2% of its earnings in the form of a dividend.

Insider & Institutional Ownership

7.6% of Farmers & Merchants Bank of Long Beach shares are owned by institutional investors. Comparatively, 0.0% of Oversea-Chinese Banking shares are owned by institutional investors. 12.8% of Farmers & Merchants Bank of Long Beach shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Farmers & Merchants Bank of Long Beach and Oversea-Chinese Banking’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmers & Merchants Bank of Long Beach	11.52%	3.95%	0.44%
Oversea-Chinese Banking	N/A	N/A	N/A

Summary

Oversea-Chinese Banking beats Farmers & Merchants Bank of Long Beach on 6 of the 11 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 Oversea-Chinese Banking

Oversea-Chinese Banking Corporation Limited engages in the provision of financial services in Singapore, Malaysia, Indonesia, Greater China, rest of the Asia Pacific, and internationally. The company's Global Consumer/Private Banking segment provides products and services to individual customers, including checking accounts, and savings and fixed deposits; housing and other personal loans; credit cards; wealth management products consisting of unit trusts, banc assurance products, and structured deposits; and brokerage services. This segment also offers investment advice and portfolio management, estate and trust planning, and wealth structuring services for high-net-worth individuals. Its Global Wholesale Banking segment provides long-term project financing, short-term credit, working capital, and trade financing; customized and structured equity-linked financing products; cash management and custodian services; capital market solutions; corporate finance and advisory banking services; and treasury products. This segment serves corporates, public sector, and small and medium enterprises. The company's Global Markets segment is involved in the foreign exchange activities, money market operations, and fixed income and derivatives trading, as well as structured treasury products and financial solutions. Its Insurance segment provides fund management services, and life and general insurance products. The company's Others segment is involved in property and investment holding activities. Oversea-Chinese Banking Corporation Limited was founded in 1912 and is headquartered in Singapore.