Comparing M&F Bancorp (OTCMKTS:MFBP) & Pinnacle Bankshares (OTCMKTS:PPBN)

Volatility & Risk

Pinnacle Bankshares has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, M&F Bancorp has a beta of -0.6, meaning that its stock price is 160% less volatile than the S&P 500.

Dividends

Pinnacle Bankshares pays an annual dividend of $1.12 per share and has a dividend yield of 2.4%. M&F Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Pinnacle Bankshares pays out 23.1% of its earnings in the form of a dividend. M&F Bancorp pays out 15.8% 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.

Insider & Institutional Ownership

3.8% of Pinnacle Bankshares shares are owned by institutional investors. 6.5% of Pinnacle Bankshares shares are owned by company insiders. Comparatively, 2.9% of M&F Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Pinnacle Bankshares and M&F Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pinnacle Bankshares	18.24%	12.74%	1.04%
M&F Bancorp	N/A	N/A	N/A

Valuation & Earnings

This table compares Pinnacle Bankshares and M&F Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pinnacle Bankshares	$59.05 million	1.71	$10.77 million	$4.84	9.64
M&F Bancorp	$29.72 million	1.47	$4.30 million	$1.52	14.81

Pinnacle Bankshares has higher revenue and earnings than M&F Bancorp. Pinnacle Bankshares is trading at a lower price-to-earnings ratio than M&F Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Pinnacle Bankshares beats M&F Bancorp on 11 of the 13 factors compared between the two stocks.

About Pinnacle Bankshares

Pinnacle Bankshares Corporation operates as the bank holding company for First National Bank that provides a range of commercial and retail banking products and services. The company accepts checking accounts, savings and time deposits, individual retirement accounts, certificates of deposit, and money market accounts. Its loan products include residential and commercial mortgage loans, home equity loans, consumer installment loans, agricultural loans, investment loans, small business loans, commercial lines of credit, and letters of credit. The company also provides credit cards; insurance products, including property and casualty, life, and health; investment and annuity products; and overdraft protection, merchant bankcard processing, cash management, remote deposit capture, night drop, safe deposit boxes, and notary services, as well as telephone, mobile, and online banking services. It operates branches in Amherst County, Bedford County, Campbell County, Pittsylvania County; and the city of Danville, Lynchburg and Charlottesville. The company was founded in 1908 and is headquartered in Altavista, Virginia.

About M&F Bancorp

M&F Bancorp, Inc. operates as a bank holding company for the Mechanics and Farmers Bank that provides consumer and commercial banking products and services in North Carolina. It offers deposit products, including demand deposits; checking, savings, and money market accounts, as well as certificates of deposit. The company provides loans for commercial and residential real estate, and construction; and consumer and other loans; as well as ATM services. M&F Bancorp, Inc. was founded in 1907 and is headquartered in Durham, North Carolina.