Head to Head Analysis: Middlefield Banc (NASDAQ:MBCN) versus Westbury Bancorp (OTCMKTS:WBBW)

Middlefield Banc (NASDAQ:MBCN) and Westbury Bancorp (OTCMKTS:WBBW) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

31.7% of Middlefield Banc shares are held by institutional investors. Comparatively, 0.3% of Westbury Bancorp shares are held by institutional investors. 3.8% of Middlefield Banc shares are held by company insiders. Comparatively, 10.9% of Westbury Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Middlefield Banc and Westbury Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Middlefield Banc	0	2	0	0	2.00
Westbury Bancorp	0	0	0	0	N/A

Middlefield Banc currently has a consensus target price of $25.00, indicating a potential upside of 12.92%. Given Middlefield Banc’s higher possible upside, research analysts clearly believe Middlefield Banc is more favorable than Westbury Bancorp.

Valuation and Earnings

This table compares Middlefield Banc and Westbury Bancorp’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Middlefield Banc	$96.99 million	1.84	$17.37 million	$2.14	10.35
Westbury Bancorp	$34.41 million	1.45	$7.99 million	N/A	N/A

Middlefield Banc has higher revenue and earnings than Westbury Bancorp.

Profitability

This table compares Middlefield Banc and Westbury Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Middlefield Banc	17.91%	8.76%	0.97%
Westbury Bancorp	N/A	N/A	N/A

Volatility and Risk

Middlefield Banc has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Westbury Bancorp has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500.

Summary

Middlefield Banc beats Westbury Bancorp on 9 of the 10 factors compared between the two stocks.

About Middlefield Banc

Middlefield Banc Corp. operates as the bank holding company for The Middlefield Banking Company that provides various commercial banking services to small and medium-sized businesses, professionals, small business owners, and retail customers in northeastern and central Ohio. It provides checking, savings, negotiable order of withdrawal accounts, money market accounts, time certificates of deposit, commercial loans, real estate loans, various consumer loans, safe deposit facilities, and travelers' checks. The company also offers operational and working capital, term business, residential construction, professional, and residential and mortgage loans, as well as consumer installment loans for home improvements, automobiles, boats, and other personal expenditures; loans to finance capital purchases; selected guaranteed or subsidized loan programs for small businesses; and agricultural loans. In addition, the company resolves and disposes troubled assets in Ohio. Further, it provides official checks, money orders, ATM services, as well as IRA accounts; online banking and bill payment services to individuals; and online cash management services to business customers. The company was founded in 1901 and is headquartered in Middlefield, Ohio.

About Westbury Bancorp

Westbury Bancorp, Inc. operates as a holding company for Westbury Bank that provides various community banking and financial products and services for individuals, families, and businesses in the United States. The company offers checking and savings accounts, money market accounts, certificates of deposit, and term certificate accounts; personal, mortgage, one-to four-family residential real estate, multi-family, commercial business, loans, commercial real estate loans, and construction loans; credit cards; and online and mobile banking services. Westbury Bancorp, Inc. was founded in 1926 and is headquartered in Waukesha, Wisconsin.