Financial Analysis: Farmers & Merchants Bank of Long Beach (OTCMKTS:FMBL) vs. Oxford Bank (OTCMKTS:OXBC)

Oxford Bank (OTCMKTS:OXBC) and Farmers & Merchants Bank of Long Beach (OTCMKTS:FMBL) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Risk and Volatility

Oxford Bank has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500. Comparatively, Farmers & Merchants Bank of Long Beach has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oxford Bank	N/A	N/A	$12.06 million	$4.87	6.67
Farmers & Merchants Bank of Long Beach	$431.97 million	1.53	$70.01 million	$485.58	11.22

Farmers & Merchants Bank of Long Beach has higher revenue and earnings than Oxford Bank. Oxford Bank 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Oxford Bank	N/A	N/A	N/A
Farmers & Merchants Bank of Long Beach	12.34%	4.21%	0.46%

Analyst Ratings

This is a summary of recent ratings and target prices for Oxford Bank and Farmers & Merchants Bank of Long Beach, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oxford Bank	0	0	0	0	N/A
Farmers & Merchants Bank of Long Beach	0	0	0	0	N/A

Institutional & Insider Ownership

4.5% of Oxford Bank shares are held by institutional investors. Comparatively, 7.6% of Farmers & Merchants Bank of Long Beach shares are held by institutional investors. 12.8% of Farmers & Merchants Bank of Long Beach shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Farmers & Merchants Bank of Long Beach beats Oxford Bank on 10 of the 10 factors compared between the two stocks.

About Oxford Bank

Oxford Bank Corporation provides banking products and services to various customers in Michigan. Its deposit products include savings, checking, and individual retirement accounts, as well as certificates of deposit. The company's loan portfolio comprises home mortgage, home equity, auto, student, term, commercial real estate, and small business administration loans, as well as lines of credit. It also offers cash management, merchant card, remote deposit capture, payroll, overdraft protection, wire transfer, night depository, and notary services, as well as safe deposit box and interactive teller machine services; online, telephone, and mobile banking services; debit and credit cards; and insurance products. The company operates its branches in Clarkston, Davison, Dryden, Lake Orion, Ortonville, Oxford, and Oakland. Oxford Bank Corporation was founded in 1884 and is based in Oxford, Michigan.

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.