Analyzing Glen Burnie Bancorp (NASDAQ:GLBZ) and U.S. Bancorp (NYSE:USB)

U.S. Bancorp (NYSE:USB) and Glen Burnie Bancorp (NASDAQ:GLBZ) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Volatility & Risk

U.S. Bancorp has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Glen Burnie Bancorp has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
U.S. Bancorp	18.49%	13.69%	1.15%
Glen Burnie Bancorp	0.16%	0.14%	0.01%

Insider & Institutional Ownership

77.6% of U.S. Bancorp shares are held by institutional investors. Comparatively, 9.8% of Glen Burnie Bancorp shares are held by institutional investors. 0.2% of U.S. Bancorp shares are held by insiders. Comparatively, 14.5% of Glen Burnie Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

U.S. Bancorp pays an annual dividend of $2.16 per share and has a dividend yield of 3.8%. Glen Burnie Bancorp pays an annual dividend of $0.10 per share and has a dividend yield of 2.3%. U.S. Bancorp pays out 43.1% of its earnings in the form of a dividend. Glen Burnie Bancorp pays out -200.0% 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. U.S. Bancorp has increased its dividend for 14 consecutive years. U.S. Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares U.S. Bancorp and Glen Burnie Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
U.S. Bancorp	$42.86 billion	2.08	$7.57 billion	$5.01	11.43
Glen Burnie Bancorp	$11.83 million	1.07	-$110,000.00	($0.05)	-86.00

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for U.S. Bancorp and Glen Burnie Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
U.S. Bancorp	0	8	16	1	2.72
Glen Burnie Bancorp	1	0	0	0	1.00

U.S. Bancorp presently has a consensus target price of $67.31, indicating a potential upside of 17.50%. Given U.S. Bancorp’s stronger consensus rating and higher probable upside, equities analysts plainly believe U.S. Bancorp is more favorable than Glen Burnie Bancorp.

Summary

U.S. Bancorp beats Glen Burnie Bancorp on 15 of the 18 factors compared between the two stocks.

About U.S. Bancorp

U.S. Bancorp, a financial services holding company, provides various financial services to individuals, businesses, institutional organizations, governmental entities, and other financial institutions in the United States. It operates through Wealth, Corporate, Commercial and Institutional Banking; Consumer and Business Banking; Payment Services; and Treasury and Corporate Support segments. The company offers depository services, including checking accounts, savings accounts, and time certificate contracts; and lending services, such as traditional credit products and credit card services, lease financing and import/export trade, asset-backed lending, agricultural finance, and other products. It also provides ancillary services comprising capital markets, treasury management, and receivable lock-box collection services to corporate and governmental entity customers. In addition, the company offers asset management and fiduciary services for individuals, estates, foundations, business corporations, and charitable organizations. Further, it provides investment and insurance products to its customers principally within its domestic markets, as well as fund administration services to mutual and other funds. Additionally, the company provides corporate and purchasing card, and corporate trust services. Furthermore, it offers trust and investment management, merchant and ATM processing, mortgage banking, insurance, and brokerage and leasing services. U.S. Bancorp was founded in 1863 and is headquartered in Minneapolis, Minnesota.

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.