Comparing Pathfinder Bancorp (NASDAQ:PBHC) & Gouverneur Bancorp Inc./MD (OTCMKTS:GOVB)

Gouverneur Bancorp Inc./MD (OTCMKTS:GOVB) and Pathfinder Bancorp (NASDAQ:PBHC) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Risk & Volatility

Gouverneur Bancorp Inc./MD has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Pathfinder Bancorp has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500.

Dividends

Gouverneur Bancorp Inc./MD pays an annual dividend of $0.18 per share and has a dividend yield of 1.0%. Pathfinder Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 3.0%. Gouverneur Bancorp Inc./MD pays out 21.2% of its earnings in the form of a dividend. Pathfinder Bancorp pays out -66.7% 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. Pathfinder Bancorp has raised its dividend for 1 consecutive years. Pathfinder Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Gouverneur Bancorp Inc./MD and Pathfinder Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gouverneur Bancorp Inc./MD	8.69%	N/A	N/A
Pathfinder Bancorp	-4.16%	-2.73%	-0.23%

Analyst Ratings

This is a breakdown of current ratings for Gouverneur Bancorp Inc./MD and Pathfinder Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gouverneur Bancorp Inc./MD	0	0	0	0	0.00
Pathfinder Bancorp	1	0	0	0	1.00

Earnings & Valuation

This table compares Gouverneur Bancorp Inc./MD and Pathfinder Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gouverneur Bancorp Inc./MD	$9.72 million	1.91	$730,000.00	$0.85	20.59
Pathfinder Bancorp	$79.15 million	0.80	-$3.42 million	($0.60)	-22.12

Gouverneur Bancorp Inc./MD has higher earnings, but lower revenue than Pathfinder Bancorp. Pathfinder Bancorp is trading at a lower price-to-earnings ratio than Gouverneur Bancorp Inc./MD, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

21.6% of Gouverneur Bancorp Inc./MD shares are owned by institutional investors. Comparatively, 26.7% of Pathfinder Bancorp shares are owned by institutional investors. 5.4% of Gouverneur Bancorp Inc./MD shares are owned by company insiders. Comparatively, 15.4% of Pathfinder Bancorp shares are owned by company 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

Gouverneur Bancorp Inc./MD beats Pathfinder Bancorp on 8 of the 15 factors compared between the two stocks.

About Gouverneur Bancorp Inc./MD

Gouverneur Bancorp, Inc. operates as the holding company for Gouverneur Savings and Loan Association that provides various banking products and services to individuals and businesses in New York. It accepts passbook savings, NOW, money market deposit, and checking accounts, as well as certificates of deposit. The company's loan products include mortgage loans, one- to four-family residential loans, commercial real estate loans, and multi-family residential real estate loans, residential and commercial construction loans, commercial land loans, home equity loans, lines of credit, commercial loans, automobiles, motorcycles, campers, boats, and other recreational vehicles, as well as personal secured and unsecured loans. It also invests in municipal bonds, U.S. Treasury securities, U.S. Government agencies and government-sponsored obligations, and mortgage-backed securities. In addition, the company offers online, mobile, bill pay, and telephone banking; electronic or paper statements; and ATM, debit cards, direct deposits, mobile remote deposit capture, automatic payments and transfers, bank checks, wire transfers, and safe deposit box services. It serves primarily the St. Lawrence County, and Jefferson and Lewis counties in New York State. The company was founded in 1892 and is headquartered in Gouverneur, New York.

About Pathfinder Bancorp

Pathfinder Bancorp, Inc. operates as a bank holding company for Pathfinder Bank that provides various banking and financial products and services in New York. The company's deposit products include checking, savings, and money market deposit accounts; certificates of deposit; and demand and time deposits. Its loan portfolio comprises commercial real estate, commercial, residential real estate, construction, and tax-exempt loans; home equity loans and junior liens; and consumer loans comprising automobile, recreational vehicles, and unsecured personal loans, as well as unsecured lines of credit and loans secured by deposit accounts. The company is also involved in the property, casualty, and life insurance brokerage business. It primarily serves individuals, families, small to mid-size businesses, and municipalities. The company was founded in 1859 and is headquartered in Oswego, New York.