Head to Head Review: Madison County Financial (OTCMKTS:MCBK) and Chesapeake Financial Shares (OTCMKTS:CPKF)

Institutional and Insider Ownership

3.7% of Chesapeake Financial Shares shares are owned by institutional investors. 39.5% of Chesapeake Financial Shares shares are owned by company insiders. Comparatively, 16.9% of Madison County Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Chesapeake Financial Shares pays an annual dividend of $0.68 per share and has a dividend yield of 2.1%. Madison County Financial pays an annual dividend of $0.36 per share and has a dividend yield of 1.2%. Chesapeake Financial Shares pays out 31.9% of its earnings in the form of a dividend.

Risk and Volatility

Chesapeake Financial Shares has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500. Comparatively, Madison County Financial has a beta of 0.12, suggesting that its share price is 88% less volatile than the S&P 500.

Earnings and Valuation

This table compares Chesapeake Financial Shares and Madison County Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chesapeake Financial Shares	$102.27 million	1.50	$10.00 million	$2.13	15.26
Madison County Financial	$29.54 million	2.71	$3.82 million	N/A	N/A

Chesapeake Financial Shares has higher revenue and earnings than Madison County Financial.

Profitability

This table compares Chesapeake Financial Shares and Madison County Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chesapeake Financial Shares	9.78%	14.64%	1.07%
Madison County Financial	N/A	N/A	N/A

Summary

Chesapeake Financial Shares beats Madison County Financial on 9 of the 11 factors compared between the two stocks.

About Chesapeake Financial Shares

Chesapeake Financial Shares, Inc. operates as the bank holding company for Chesapeake Bank that provides various banking products and services for individuals and businesses in the United States. The company accepts interest and noninterest checking, savings, and money market accounts; and variable-rate and fixed-term money market accounts, as well as certificates of deposit. It also offers mortgage, and single-family residential and residential construction loans; commercial loans, which include owner-occupied commercial development, retail, builders/contractors, medical, service and professional, hospitality, nonprofits, marine industry, and agricultural and seafood loans; and consumer and other loans. In addition, the company provides merchant processing, accounts receivable financing, wealth management and trust, and mortgage banking services, as well as cash management services. The company was founded in 1900 and is based in Kilmarnock, Virginia.

About Madison County Financial

Madison County Financial, Inc. operates as the holding company for Madison County Bank that provides banking and financial services to individual and corporate customers in Nebraska, the United States. It offers checking, money market savings, savings, and individual retirement accounts; certificates of deposit; credit and debit cards; home loans; and consumer loans, including home equity lines of credit, second mortgage, home improvement, recreational vehicle, personal, and overdraft protection loans, as well as loans for automobiles, trucks, and vans. The company also provides agricultural real estate, machinery and equipment, livestock and crop, and operating loans; and commercial real estate, construction, investment property, and working capital loans, as well as equipment financing services. In addition, it offers online and mobile banking, and merchant services. The company was formerly known as Madison County Holding Company and changed its name to Madison County Financial, Inc. in October 2012. Madison County Financial, Inc. was founded in 1888 and is headquartered in Madison, Nebraska.