Comparing Farmers & Merchants Bancorp (OTCMKTS:FMCB) and Pacific Alliance Bank (OTCMKTS:PFBN)

Institutional and Insider Ownership

5.6% of Farmers & Merchants Bancorp shares are owned by institutional investors. 8.5% of Farmers & Merchants Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Pacific Alliance Bank and Farmers & Merchants Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Alliance Bank	$23.57 million	1.15	$1.43 million	N/A	N/A
Farmers & Merchants Bancorp	$292.68 million	2.61	$88.46 million	$130.83	8.10

Farmers & Merchants Bancorp has higher revenue and earnings than Pacific Alliance Bank.

Dividends

Pacific Alliance Bank pays an annual dividend of $0.10 per share and has a dividend yield of 1.2%. Farmers & Merchants Bancorp pays an annual dividend of $20.20 per share and has a dividend yield of 1.9%. Farmers & Merchants Bancorp pays out 15.4% of its earnings in the form of a dividend.

Profitability

This table compares Pacific Alliance Bank and Farmers & Merchants Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Alliance Bank	N/A	N/A	N/A
Farmers & Merchants Bancorp	30.89%	15.32%	1.66%

Risk & Volatility

Pacific Alliance Bank has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, Farmers & Merchants Bancorp has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500.

Summary

Farmers & Merchants Bancorp beats Pacific Alliance Bank on 10 of the 11 factors compared between the two stocks.

About Pacific Alliance Bank

Pacific Alliance Bank provides commercial and consumer banking products and services for small to midsize business owners, and employees in the United States. It offers checking, money market, savings, and individual retirement accounts; and certificates of deposit. The company also provides mortgage, commercial, term, commercial real estate, construction, and SBA loans; and lines of credit. In addition, it offers personal and business online services; and casher checks, check reorder, night deposit, direct deposit, safe deposit boxes, positive pay/check reconciliation, wire, debit card, and other services. The company was founded in 2006 and is headquartered in San Gabriel, California.

About Farmers & Merchants Bancorp

Farmers & Merchants Bancorp operates as the bank holding company for Farmers & Merchants Bank of Central California that provides various banking services to businesses and individuals. The company accepts various deposit products, including checking, savings, money market, time certificates of deposit, and individual retirement accounts. It also offers range of lending products comprising commercial and residential real estate, real estate construction, agribusiness, and consumer loans, as well as equipment leases and credit card services; commercial products, including term loans, lines of credit and other working capital financing, and letters of credit; and financing products, such as automobile financing, home improvement, and home equity lines of credit. In addition, the company provides various specialized services consisting of credit card programs for merchants, lockbox and other collection services, account reconciliation, investment sweep, online account access, and electronic funds transfers through domestic and international wire and automated clearinghouse; online banking services; and investment products, such as mutual funds and annuities. The company was founded in 1916 and is headquartered in Lodi, California.