Risk and Volatility
Prime Meridian has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Pathfinder Bancorp has a beta of 0.03, indicating that its share price is 97% less volatile than the S&P 500.
Institutional & Insider Ownership
11.8% of Prime Meridian shares are held by institutional investors. Comparatively, 26.7% of Pathfinder Bancorp shares are held by institutional investors. 25.9% of Prime Meridian shares are held by company insiders. Comparatively, 22.4% of Pathfinder Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Prime Meridian and Pathfinder Bancorp”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Prime Meridian | $50.36 million | 3.24 | $8.49 million | $2.61 | 18.77 |
| Pathfinder Bancorp | $46.11 million | 1.51 | $3.76 million | $0.60 | 24.42 |
Prime Meridian has higher revenue and earnings than Pathfinder Bancorp. Prime Meridian is trading at a lower price-to-earnings ratio than Pathfinder Bancorp, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Prime Meridian and Pathfinder Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Prime Meridian | 16.86% | 10.05% | 0.95% |
| Pathfinder Bancorp | 4.28% | 3.07% | 0.26% |
Dividends
Prime Meridian pays an annual dividend of $1.00 per share and has a dividend yield of 2.0%. Pathfinder Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.7%. Prime Meridian pays out 38.3% of its earnings in the form of a dividend. Pathfinder Bancorp pays out 66.7% 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.
Summary
Prime Meridian beats Pathfinder Bancorp on 10 of the 13 factors compared between the two stocks.
About Prime Meridian
Prime Meridian Holding Company operates as the bank holding company for Prime Meridian Bank that provides various consumer and commercial banking services to individuals and businesses. The company accepts various deposits, such as checking, money market, savings, term certificate of deposit, demand interest-bearing and noninterest-bearing, health savings, NOW, and escrow accounts, as well as retirement savings plans and time deposits. Its loan products include commercial real estate, residential real estate and home equity, small business administration, construction, equipment, and commercial loans; and consumer and other loans comprising financing of automobiles, boats, and recreational vehicles, as well as issues standby letters and business lines of credit. The company also offers debit and credit cards; mobile banking, remote and mobile deposit, Apple Pay, bank-to-bank transfer, and online banking services; and safe deposit, wire transfer, foreign exchange, direct deposits, notary, night depository, official checks, domestic collections, bank drafts, automated teller services, drive-in tellers, merchant card, and banking by mail services, as well as invests in securities. Prime Meridian Holding Company was founded in 2008 and is headquartered in Tallahassee, Florida.
About Pathfinder Bancorp
Pathfinder Bancorp, Inc. operates as a bank holding company for Pathfinder Bank that provides various banking and financial products and services in New York. The company's deposit products include checking, savings, and money market deposit accounts; certificates of deposit; and demand and time deposits. Its loan portfolio comprises commercial real estate, commercial, residential real estate, construction, and tax-exempt loans; home equity loans and junior liens; and consumer loans comprising automobile, recreational vehicles, and unsecured personal loans, as well as unsecured lines of credit and loans secured by deposit accounts. The company is also involved in the property, casualty, and life insurance brokerage business. It primarily serves individuals, families, small to mid-size businesses, and municipalities. The company was founded in 1859 and is headquartered in Oswego, New York.
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