Head to Head Survey: Freedom Financial (OTCMKTS:FDVA) vs. MainStreet Bank (NASDAQ:MNSB)

Earnings and Valuation

This table compares Freedom Financial and MainStreet Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freedom Financial	$66.41 million	1.26	$4.71 million	$0.60	19.58
MainStreet Bank	$137.87 million	1.24	-$9.98 million	($1.46)	-15.16

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

Insider and Institutional Ownership

52.3% of MainStreet Bank shares are owned by institutional investors. 13.3% of Freedom Financial shares are owned by insiders. Comparatively, 9.3% of MainStreet Bank shares are owned by 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.

Profitability

This table compares Freedom Financial and MainStreet Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freedom Financial	6.54%	5.21%	0.40%
MainStreet Bank	-6.34%	3.72%	0.32%

Risk & Volatility

Freedom Financial has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500. Comparatively, MainStreet Bank has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500.

Summary

Freedom Financial beats MainStreet Bank on 8 of the 11 factors compared between the two stocks.

About Freedom Financial

Freedom Financial Holdings, Inc. operates as the bank holding company for The Freedom Bank of Virginia that provides commercial banking, personal banking, and mortgage banking solutions. The company offers personal and business checking accounts, interest bearing business savings accounts, money market accounts, personal savings accounts, certificates of deposits, and IRAs, as well as insured cash sweep and certificate of deposit account registry services. It also provides business term, personal, and mortgage loans; commercial lines of credit; commercial real estate mortgage and small business lending services; home equity lines; and credit cards. In addition, the company offers treasury management, online and mobile banking, remote deposit capture, ACH, and wire transfer services; business valuation, bank-at-work, and merchant services; and prestige banking services. The company was founded in 2001 and is headquartered in Fairfax, Virginia.

About MainStreet Bank

MainStreet Bancshares, Inc. operates as the bank holding company for MainStreet Bank that provides various banking products and services for individuals, small to medium-sized businesses, and professional service organizations. The company offers demand, NOW, money market, savings, and sweep accounts, as well as certificates of deposit; business and consumer checking, interest-bearing checking, business account analysis, and other depository services; and cash management, wire transfer, check imaging, bill pay, remote deposit capture, and courier services. It also provides commercial loans, include government contract receivables, plant and equipment, general working capital, contract administration, and acquisition loans; commercial real estate, real estate construction, and residential real estate loans; and consumer loans comprising term loans and overdraft protection, as well as debit and credit cards. In addition, the company offers deposit insurance solutions; remote deposit of checks; and internet bill payment, online cash management, and online and mobile banking services. It operates in Herndon, Fairfax, McLean, Leesburg, Clarendon, and Washington D.C., as well as automated teller machines. The company was incorporated in 2003 and is headquartered in Fairfax, Virginia.