Comparing American Bank (OTCMKTS:AMBK) and Potomac Bancshares (OTCMKTS:PTBS)

Dividends

American Bank pays an annual dividend of $0.56 per share and has a dividend yield of 3.5%. Potomac Bancshares pays an annual dividend of $0.52 per share and has a dividend yield of 3.1%. American Bank pays out 31.6% of its earnings in the form of a dividend. Potomac Bancshares pays out 26.9% 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.

Profitability

This table compares American Bank and Potomac Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Bank	20.67%	N/A	N/A
Potomac Bancshares	N/A	N/A	N/A

Institutional and Insider Ownership

5.3% of Potomac Bancshares shares are held by institutional investors. 4.4% of Potomac Bancshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares American Bank and Potomac Bancshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Bank	$49.06 million	2.11	$9.02 million	$1.77	8.94
Potomac Bancshares	$48.09 million	1.45	$7.99 million	$1.93	8.76

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

Volatility & Risk

American Bank has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500. Comparatively, Potomac Bancshares has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.

Summary

American Bank beats Potomac Bancshares on 6 of the 11 factors compared between the two stocks.

About American Bank

American Bank Incorporated operates as the bank holding company for American Bank that provides various banking products and services to consumer, business, institutional, and governmental customers. It accepts a range of interest-bearing checking and money market accounts, savings accounts, certificates of deposit, and individual retirement accounts. The company also offers commercial, industrial, and other loans; commercial mortgage loans; commercial construction loans; residential mortgage loans; and consumer loans, including personal term loans, personal credit lines, automobile loans, home equity loans, and home equity lines of credit and loans. In addition, it provides online or mobile banking, automated teller machine, safe deposit box rental, and wire transfer services, as well as sells checks and checkbooks, and purchases investment securities. The company operates an office located in Allentown, Pennsylvania; and a loan production office in Blue Bell, Pennsylvania. The company was founded in 1997 and is based in Allentown, Pennsylvania.

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.