Contrasting BANCORP 34 (OTCMKTS:BCTF) & Farmers & Merchants Bancorp (OTCMKTS:FMCB)

Risk & Volatility

Farmers & Merchants Bancorp has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500. Comparatively, BANCORP 34 has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500.

Profitability

This table compares Farmers & Merchants Bancorp and BANCORP 34’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmers & Merchants Bancorp	30.88%	15.05%	1.67%
BANCORP 34	14.51%	4.02%	0.38%

Earnings & Valuation

This table compares Farmers & Merchants Bancorp and BANCORP 34″s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmers & Merchants Bancorp	$303.12 million	2.69	$93.61 million	$134.01	8.81
BANCORP 34	$54.19 million	1.91	$7.86 million	$1.06	14.34

Farmers & Merchants Bancorp has higher revenue and earnings than BANCORP 34. Farmers & Merchants Bancorp is trading at a lower price-to-earnings ratio than BANCORP 34, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

5.6% of Farmers & Merchants Bancorp shares are owned by institutional investors. Comparatively, 6.5% of BANCORP 34 shares are owned by institutional investors. 8.0% of Farmers & Merchants Bancorp shares are owned by insiders. Comparatively, 7.4% of BANCORP 34 shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Farmers & Merchants Bancorp beats BANCORP 34 on 8 of the 10 factors compared between the two stocks.

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.

About BANCORP 34

Bancorp 34, Inc. operates as the holding company for Bank 34 that offers various banking products and services to individuals and businesses in the United States. It accepts various deposit products, such as savings accounts, checking accounts, money market accounts, demand and time deposits, NOW accounts, and individual retirement accounts, as well as certificates of deposit. The company also provides term, working capital, construction, USDA, small business administration, equipment, assisted living and skilled nursing, renewable energy and solar equipment, and commercial real estate loans; and small to medium size business and business acquisitions financing; lines of credit; multi-family finance; and employee stock ownership plans, HOA lending, and investor pools of single family rentals. In addition, it offers credit and debit cards; safe deposit boxes; treasury management products; and merchant card processing, cash management, e-banking, mobile and online banking, bill payment, and merchant capture services. The company operates through its network of full-service branches in Scottsdale and Arizona, as well as Alamogordo and Las Cruces, New Mexico. Bancorp 34, Inc. was founded in 1934 and is headquartered in Scottsdale, Arizona.