Comparing SR Bancorp (NASDAQ:SRBK) and Community Heritage Financial (OTCMKTS:CMHF)

Valuation and Earnings

This table compares SR Bancorp and Community Heritage Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SR Bancorp	$48.54 million	2.67	$3.75 million	$0.44	32.73
Community Heritage Financial	$57.30 million	1.43	$8.12 million	$2.77	10.11

Community Heritage Financial has higher revenue and earnings than SR Bancorp. Community Heritage Financial is trading at a lower price-to-earnings ratio than SR Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SR Bancorp and Community Heritage Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SR Bancorp	7.70%	1.74%	0.32%
Community Heritage Financial	N/A	N/A	N/A

Insider and Institutional Ownership

24.7% of SR Bancorp shares are held by institutional investors. Comparatively, 12.2% of Community Heritage Financial shares are held by institutional investors. 3.6% of SR Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

SR Bancorp has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Community Heritage Financial has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Dividends

SR Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 1.4%. Community Heritage Financial pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. SR Bancorp pays out 45.5% of its earnings in the form of a dividend. Community Heritage Financial pays out 11.6% 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

SR Bancorp beats Community Heritage Financial on 9 of the 13 factors compared between the two stocks.

About SR Bancorp

SR Bancorp, Inc. operates as the holding company for Somerset Regal Bank that provides customary retail and commercial banking services to individuals, businesses, and local municipalities in the communities of Somerset, Middlesex, Hunterdon, and Essex counties in New Jersey. It offers deposit instruments, including noninterest-bearing demand deposits, interest-bearing demand accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides loans comprising one- to four family-residential mortgage loans, home equity loans and lines of credit, unsecured personal loans, and rehabilitation loans; and bill payment services. In addition, it is involved in the investment activities. The company was founded in 1887 and is headquartered in Bound Brook, New Jersey.

About Community Heritage Financial

Community Heritage Financial, Inc. operates as the bank holding company for Middletown Valley Bank that provides retail and commercial banking services to individuals and businesses in Frederick and Washington counties in Maryland and Franklin County, Pennsylvania. Its primary deposit products include demand, savings, and time deposits, as well as lending products comprise real estate mortgages, commercial business loans, and instalment loans. The company also offers mortgage financing, new home purchases, refinancing, and construction lending in Middletown, Crofton, and Oakland, Maryland. The company was founded in 1908 and is based in Middletown, Maryland.