Contrasting Bar Harbor Bankshares (NYSE:BHB) & Potomac Bancshares (OTCMKTS:PTBS)

Dividends

Potomac Bancshares pays an annual dividend of $0.52 per share and has a dividend yield of 3.0%. Bar Harbor Bankshares pays an annual dividend of $1.28 per share and has a dividend yield of 4.2%. Potomac Bancshares pays out 29.4% of its earnings in the form of a dividend. Bar Harbor Bankshares pays out 44.9% 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. Bar Harbor Bankshares has increased its dividend for 22 consecutive years. Bar Harbor Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

5.3% of Potomac Bancshares shares are owned by institutional investors. Comparatively, 54.5% of Bar Harbor Bankshares shares are owned by institutional investors. 4.4% of Potomac Bancshares shares are owned by insiders. Comparatively, 2.6% of Bar Harbor Bankshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Potomac Bancshares and Bar Harbor Bankshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Potomac Bancshares	$48.09 million	1.49	$7.34 million	$1.77	9.73
Bar Harbor Bankshares	$150.40 million	3.12	$43.65 million	$2.85	10.73

Bar Harbor Bankshares has higher revenue and earnings than Potomac Bancshares. Potomac Bancshares is trading at a lower price-to-earnings ratio than Bar Harbor Bankshares, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Potomac Bancshares has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500. Comparatively, Bar Harbor Bankshares has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.

Profitability

This table compares Potomac Bancshares and Bar Harbor Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Potomac Bancshares	N/A	N/A	N/A
Bar Harbor Bankshares	N/A	N/A	N/A

Summary

Bar Harbor Bankshares beats Potomac Bancshares on 9 of the 11 factors compared between the two stocks.

About Potomac Bancshares

Potomac Bancshares, Inc. operates as the bank holding company for Bank of Charles Town that provides various banking products and services to individuals and businesses. The company offers checking, savings, and individual retirement accounts; and certificates of deposit (CD). It also provides personal loans, including new and used vehicle, home equity, unsecured home improvement and personal, retail equipment, and lot loans, as well as loans secured by CD, and home equity lines of credit; commercial loans for building or office purchases, commercial real estate and construction, and production and administrative equipment purchases; lines of credit; mortgage, commercial, term, residential and commercial construction, commercial real estate, and agricultural loans; and credit and debit cards. In addition, the company offers Card Pay, cash management, merchant, financial planning, trust and estate, investment management, wealth management, full-service brokerage, retirement and insurance planning and products, asset allocation and management, and college planning services, as well as telephone, mobile, and online banking services. Potomac Bancshares, Inc. was founded in 1871 and is based in Charles Town, West Virginia.

About Bar Harbor Bankshares

Bar Harbor Bankshares operates as the holding company for Bar Harbor Bank & Trust that provides commercial, lending, retail, and wealth management banking services. It accepts various deposit products, including interest-bearing and non-interest-bearing demand accounts, savings accounts, time deposits, and money market deposit accounts, as well as certificates of deposit. The company also provides commercial real estate loans, such as multi-family, commercial construction and land development, and other commercial real estate classes; commercial and industrial loans, including loans to commercial and agricultural businesses, and tax exempt entities; residential real estate loans consists of mortgages for 1-4 family housing; and consumer loans comprises home equity loans, lines of credit, auto, and other installment lending. In addition, it provides life insurance, annuity, and retirement products, as well as financial planning services; and third-party investment and insurance services. Further, the company offers trust and estate administration, wealth advisory, and investment management services to individuals, businesses, not-for-profit organizations, and municipalities; and 401K plan, financial, estate and charitable planning, investment management, family office, municipal, and tax services. It operates 53 locations across Maine, New Hampshire, and Vermont. The company was founded in 1887 and is based in Bar Harbor, Maine.