Contrasting Glen Burnie Bancorp (NASDAQ:GLBZ) & Eastern Bankshares (NASDAQ:EBC)

Glen Burnie Bancorp (NASDAQ:GLBZ) and Eastern Bankshares (NASDAQ:EBC) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares Glen Burnie Bancorp and Eastern Bankshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Glen Burnie Bancorp	$11.83 million	1.20	-$110,000.00	($0.01)	-485.00
Eastern Bankshares	$1.33 billion	3.67	$88.22 million	$0.41	50.61

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

Institutional and Insider Ownership

9.8% of Glen Burnie Bancorp shares are owned by institutional investors. Comparatively, 71.7% of Eastern Bankshares shares are owned by institutional investors. 14.6% of Glen Burnie Bancorp shares are owned by company insiders. Comparatively, 1.3% of Eastern Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Glen Burnie Bancorp pays an annual dividend of $0.10 per share and has a dividend yield of 2.1%. Eastern Bankshares pays an annual dividend of $0.52 per share and has a dividend yield of 2.5%. Glen Burnie Bancorp pays out -1,000.0% of its earnings in the form of a dividend. Eastern Bankshares pays out 126.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Eastern Bankshares has raised its dividend for 5 consecutive years. Eastern Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Glen Burnie Bancorp and Eastern Bankshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Glen Burnie Bancorp	1	0	0	0	1.00
Eastern Bankshares	0	3	3	1	2.71

Eastern Bankshares has a consensus price target of $22.50, suggesting a potential upside of 8.43%. Given Eastern Bankshares’ stronger consensus rating and higher probable upside, analysts plainly believe Eastern Bankshares is more favorable than Glen Burnie Bancorp.

Profitability

This table compares Glen Burnie Bancorp and Eastern Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Glen Burnie Bancorp	0.16%	0.14%	0.01%
Eastern Bankshares	8.32%	8.25%	1.19%

Risk and Volatility

Glen Burnie Bancorp has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500. Comparatively, Eastern Bankshares has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Summary

Eastern Bankshares beats Glen Burnie Bancorp on 15 of the 18 factors compared between the two stocks.

About Glen Burnie Bancorp

Glen Burnie Bancorp operates as the bank holding company for The Bank of Glen Burnie that provides commercial and retail banking services to individuals, associations, partnerships, and corporations. The company offers savings accounts, money market deposit accounts, demand deposit accounts, NOW checking accounts, IRA and SEP accounts, and certificates of deposit. It also provides residential and commercial real estate, construction, land acquisition and development, and secured and unsecured commercial loans, as well as consumer instalment lending, such as indirect automobile lending services; and residential first and second mortgage loans, home equity lines of credit, and commercial mortgage loans. In addition, the company offers safe deposit boxes, money orders, night depositories, automated clearinghouse transactions, wire transfers, and automated teller machine (ATM) services, as well as electronic banking services, such as telephone and online banking, bill pay, card management and control, mobile app, merchant source capture, mobile deposit capture, Zelle, etc. Further, it provides treasury services, including wire transfer and ACH services, and debit cards. Additionally, the company engages in the acquisition and disposition of other real estate properties. It serves customers in northern Anne Arundel county and surrounding areas from its main office and branch in Glen Burnie, Maryland; and branch offices in Odenton, Riviera Beach, Crownsville, Severn, Linthicum, and Severna Park, Maryland. The company also operates a remote ATM located in Pasadena, Maryland. The company was founded in 1949 and is based in Glen Burnie, Maryland.

About Eastern Bankshares

Eastern Bankshares, Inc. operates as the bank holding company for Eastern Bank that provides banking products and services primarily to retail, commercial, and small business customers. The company provides deposit accounts, interest checking accounts, money market accounts, savings accounts, and time certificates of deposit accounts. It also offers commercial and industrial, commercial real estate and construction, small business, residential real estate, and home equity loans; lines of credit; and other consumer loans comprising unsecured personal lines of credit, overdraft protection, automobile loans, home improvement loans, airplane loans, and other personal loans. In addition, the company provides trust, financial planning and portfolio management, automated lock box collection, cash management, and account reconciliation services; personal, business, and employee benefits insurance products. Eastern Bankshares, Inc. was founded in 1818 and is headquartered in Boston, Massachusetts.