Community Bancorp. (OTCMKTS:CMTV) versus Glen Burnie Bancorp (NASDAQ:GLBZ) Critical Analysis

Glen Burnie Bancorp (NASDAQ:GLBZ) and Community Bancorp. (OTCMKTS:CMTV) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Valuation and Earnings

This table compares Glen Burnie Bancorp and Community Bancorp.”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Glen Burnie Bancorp	$11.83 million	1.08	-$110,000.00	$0.01	440.00
Community Bancorp.	$62.18 million	2.50	$12.76 million	$2.91	9.62

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

Volatility & Risk

Glen Burnie Bancorp has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500. Comparatively, Community Bancorp. has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500.

Profitability

This table compares Glen Burnie Bancorp and Community Bancorp.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Glen Burnie Bancorp	0.16%	0.14%	0.01%
Community Bancorp.	24.43%	15.91%	1.36%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Glen Burnie Bancorp and Community Bancorp., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Glen Burnie Bancorp	1	0	0	0	1.00
Community Bancorp.	0	0	0	0	0.00

Dividends

Glen Burnie Bancorp pays an annual dividend of $0.10 per share and has a dividend yield of 2.3%. Community Bancorp. pays an annual dividend of $1.00 per share and has a dividend yield of 3.6%. Glen Burnie Bancorp pays out 1,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Community Bancorp. pays out 34.4% of its earnings in the form of a dividend. Community Bancorp. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

9.8% of Glen Burnie Bancorp shares are owned by institutional investors. 14.6% of Glen Burnie Bancorp shares are owned by insiders. Comparatively, 8.5% of Community Bancorp. shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Community Bancorp. beats Glen Burnie Bancorp on 10 of the 14 factors compared between the two stocks.

About Glen Burnie Bancorp

Glen Burnie Bancorp operates as the bank holding company for The Bank of Glen Burnie that provides commercial and retail banking services to individuals, associations, partnerships, and corporations. The company offers savings accounts, money market deposit accounts, demand deposit accounts, NOW checking accounts, IRA and SEP accounts, and certificates of deposit. It also provides residential and commercial real estate, construction, land acquisition and development, and secured and unsecured commercial loans, as well as consumer instalment lending, such as indirect automobile lending services; and residential first and second mortgage loans, home equity lines of credit, and commercial mortgage loans. In addition, the company offers safe deposit boxes, money orders, night depositories, automated clearinghouse transactions, wire transfers, and automated teller machine (ATM) services, as well as electronic banking services, such as telephone and online banking, bill pay, card management and control, mobile app, merchant source capture, mobile deposit capture, Zelle, etc. Further, it provides treasury services, including wire transfer and ACH services, and debit cards. Additionally, the company engages in the acquisition and disposition of other real estate properties. It serves customers in northern Anne Arundel county and surrounding areas from its main office and branch in Glen Burnie, Maryland; and branch offices in Odenton, Riviera Beach, Crownsville, Severn, Linthicum, and Severna Park, Maryland. The company also operates a remote ATM located in Pasadena, Maryland. The company was founded in 1949 and is based in Glen Burnie, Maryland.

About Community Bancorp.

Community Bancorp. operates as the bank holding company for Community National Bank that provides financial services to individuals, businesses, nonprofit organizations, and municipalities in northern and central Vermont. It offers financing for commercial business properties, equipment, inventories, and accounts receivable, as well as standby letters of credit; and business checking and other deposit accounts, cash management services, repurchase agreements, ACH and wire transfer services, card processing, and remote deposit capture. The company also provides commercial real estate lending products, including financing for commercial developers and investors, residential builders and developers, and community development entities, including credit products to facilitate the purchase of land and/or build structures for business; to develop residential or commercial properties; and for real estate secured financing of existing businesses, as well as financing to startups and other small businesses. In addition, it offers residential real estate lending products, including fixed-rate and adjustable rate residential mortgage and home equity loans; and retail credit services, which includes personal, automobile, and boat/recreational vehicle loans. The company also provides municipal and institutional banking services, such as deposit account services, term and tax-exempt loans, and lines of credit to state and local governments, schools, charities, membership, and not-for-profit associations. Further, it offers consumer banking services, including checking accounts, savings programs, ATMs, debit and credit cards, night deposit facilities, and online, mobile and telephone banking services. Community Bancorp. was founded in 1851 and is headquartered in Derby, Vermont.