Evans Bancorp (NYSE:EVBN) versus Chesapeake Financial Shares (OTCMKTS:CPKF) Financial Contrast

Volatility and Risk

Evans Bancorp has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Chesapeake Financial Shares has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Profitability

This table compares Evans Bancorp and Chesapeake Financial Shares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evans Bancorp	9.89%	6.66%	0.53%
Chesapeake Financial Shares	11.50%	10.69%	0.74%

Dividends

Evans Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 3.3%. Chesapeake Financial Shares pays an annual dividend of $0.64 per share and has a dividend yield of 3.0%. Evans Bancorp pays out 61.4% of its earnings in the form of a dividend. Chesapeake Financial Shares pays out 71.1% 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. Evans Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Evans Bancorp and Chesapeake Financial Shares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evans Bancorp	$69.21 million	3.18	$11.95 million	$2.15	18.39
Chesapeake Financial Shares	$99.39 million	1.01	$11.43 million	$0.90	23.61

Evans Bancorp has higher earnings, but lower revenue than Chesapeake Financial Shares. Evans Bancorp is trading at a lower price-to-earnings ratio than Chesapeake Financial Shares, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

67.1% of Evans Bancorp shares are held by institutional investors. Comparatively, 3.7% of Chesapeake Financial Shares shares are held by institutional investors. 6.3% of Evans Bancorp shares are held by insiders. Comparatively, 39.5% of Chesapeake Financial Shares shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Evans Bancorp beats Chesapeake Financial Shares on 8 of the 13 factors compared between the two stocks.

About Evans Bancorp

Evans Bancorp, Inc. primarily operates as the financial holding company for Evans Bank, N.A. that provides a range of banking products and services to consumer and commercial customers in Western New York and the Finger Lakes Region of New York State. It operates in two segments, Banking Activities and Insurance Agency Activities. The company offers deposit products, which include checking and negotiable order of withdrawal accounts, savings accounts, and certificates of deposit. It also provides residential mortgages; commercial and multi-family mortgages and commercial construction loans; home equities, such as home equity lines of credit and second mortgage loans; commercial and industrial loans comprising term loans and lines of credit; consumer loans, including direct automobile, recreational vehicle, boat, home improvement, and personal loans; other loans consisting of cash reserves, overdrafts, and loan clearing accounts; and installment loans. In addition, the company sells various premium-based insurance policies, including business and personal insurance, employee benefits, surety bonds, risk management, life, disability, and long-term care coverage, as well as provides claims adjusting services to various insurance companies; and non-deposit investment products, such as annuities and mutual funds. It operates through a total of 21 full-service banking offices in Erie County, Niagara County, Monroe County, and Chautauqua County, New York. Evans Bancorp, Inc. was founded in 1920 and is headquartered in Williamsville, New York.

About Chesapeake Financial Shares

Chesapeake Financial Shares, Inc. operates as the bank holding company for Chesapeake Bank that provides various banking products and services for individuals and businesses in the United States. The company accepts interest and noninterest checking, savings, and money market accounts; and variable-rate and fixed-term money market accounts, as well as certificates of deposit. It also offers mortgage, and single-family residential and residential construction loans; commercial loans, which include owner-occupied commercial development, retail, builders/contractors, medical, service and professional, hospitality, nonprofits, marine industry, and agricultural and seafood loans; and consumer and other loans. In addition, the company provides merchant processing, accounts receivable financing, wealth management and trust, and mortgage banking services, as well as cash management services. The company was founded in 1900 and is based in Kilmarnock, Virginia.