Financial Comparison: Surrey Bancorp (OTCMKTS:SRYB) & Eagle Financial Services (OTCMKTS:EFSI)

Insider & Institutional Ownership

0.3% of Eagle Financial Services shares are held by institutional investors. Comparatively, 3.7% of Surrey Bancorp shares are held by institutional investors. 8.7% of Eagle Financial Services shares are held by company insiders. Comparatively, 33.7% of Surrey Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Eagle Financial Services and Surrey Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eagle Financial Services	13.59%	10.92%	0.67%
Surrey Bancorp	37.97%	N/A	N/A

Earnings and Valuation

This table compares Eagle Financial Services and Surrey Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eagle Financial Services	$63.71 million	3.37	$15.34 million	$2.23	17.92
Surrey Bancorp	$16.20 million	4.23	$5.10 million	$1.52	10.99

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

Risk and Volatility

Eagle Financial Services has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500. Comparatively, Surrey Bancorp has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.

Dividends

Eagle Financial Services pays an annual dividend of $1.24 per share and has a dividend yield of 3.1%. Surrey Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. Eagle Financial Services pays out 55.6% of its earnings in the form of a dividend. Surrey Bancorp pays out 31.6% 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

Surrey Bancorp beats Eagle Financial Services on 7 of the 13 factors compared between the two stocks.

About Eagle Financial Services

Eagle Financial Services, Inc. operates as the bank holding company for Bank of Clarke that provides various retail and commercial banking products and services in the Shenandoah Valley, Northern Virginia and Frederick, Maryland. It operates through three segments: Community Banking, Marine Lending, and Wealth Management. The company's deposit products include checking, NOW, money market, and regular savings accounts; and demand and time deposits. Its loan portfolio comprises one-to-four-family residential real estate, commercial real estate, construction and land development, and commercial and industrial loans, as well as secured and unsecured consumer loans, which include personal installment loans, personal lines of credit, automobile loans, and credit card loans. The company also offers fiduciary services; advisory services and investment products, including individual retirement accounts, mutual funds, tax-deferred annuities, 529 college savings plans, life insurance, long term care insurance, brokerage certificates of deposit, and other brokerage services; non-deposit investment products; and title insurance products. In addition, it provides ATM and debit cards; online bill payment services; wealth management services; and telephone, internet, and mobile banking services, as well as other commercial deposit account services, such as ACH origination and remote deposit capture services. The company operates through full-service branches, loan production offices, drive-through only facility, and ATM locations in the Virginia communities of Berryville, Winchester, Boyce, Stephens City, Purcellville, Warrenton, Leesburg, Ashburn, and Fairfax, as well as Maryland community of Frederick. Eagle Financial Services, Inc. was founded in 1881 and is headquartered in Berryville, Virginia.

About Surrey Bancorp

Surrey BanCorp engages in the provision of banking solutions through its subsidiaries, Surrey Bank & Trust . It offers checking accounts, savings, deposit services, mortgages, real estate loans, commercial credit products, business checking, and electronic banking. The company was founded on May 1, 2003 and is headquartered in Mount Airy, NC.