Head to Head Analysis: Dime Community Bancshares (NASDAQ:DCOM) and Cortland Bancorp (NASDAQ:CLDB)

Dime Community Bancshares (NASDAQ:DCOM) and Cortland Bancorp (OTCMKTS:CLDB) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

73.5% of Dime Community Bancshares shares are owned by institutional investors. Comparatively, 1.6% of Cortland Bancorp shares are owned by institutional investors. 7.8% of Dime Community Bancshares shares are owned by insiders. Comparatively, 9.5% of Cortland Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Dime Community Bancshares and Cortland Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dime Community Bancshares $231.23 million 2.92 $51.29 million $1.35 13.96
Cortland Bancorp $33.46 million 2.97 $8.84 million N/A N/A

Dime Community Bancshares has higher revenue and earnings than Cortland Bancorp.

Dividends

Dime Community Bancshares pays an annual dividend of $0.56 per share and has a dividend yield of 3.0%. Cortland Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 1.9%. Dime Community Bancshares pays out 41.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Dime Community Bancshares and Cortland Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dime Community Bancshares 1 1 0 0 1.50
Cortland Bancorp 0 0 0 0 N/A

Dime Community Bancshares presently has a consensus price target of $18.50, suggesting a potential downside of 1.80%. Given Dime Community Bancshares’ higher probable upside, research analysts plainly believe Dime Community Bancshares is more favorable than Cortland Bancorp.

Profitability

This table compares Dime Community Bancshares and Cortland Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dime Community Bancshares 20.62% 7.87% 0.75%
Cortland Bancorp 26.40% 14.41% 1.32%

Volatility & Risk

Dime Community Bancshares has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Cortland Bancorp has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.

Summary

Dime Community Bancshares beats Cortland Bancorp on 7 of the 13 factors compared between the two stocks.

Dime Community Bancshares Company Profile

Dime Community Bancshares, Inc. operates as the holding company for Dime Community Bank that provides commercial banking and financial services in New York. It offers deposit products, such as savings, money market, and interest bearing and non-interest bearing checking accounts, as well as certificates of deposit. The company also offers multifamily residential and commercial real estate loans; commercial and industrial loans, such as lines of credit, revolving lines of credit, and term loans; one-to-four family residential and condominium/cooperative apartment loans; home equity and home improvement loans; equity lines of credit on multifamily residential and commercial real estate loans; acquisition, land development, and construction loans; small business administration loans; finance loans and leases; and consumer loans. In addition, it manages and owns real estate; sells non-Federal Deposit Insurance Corporation insured investment products; and invests in multifamily residential and commercial real estate loans. As of December 31, 2018, the company operated 29 full-service retail banking offices located throughout Brooklyn, Queens, the Bronx, Nassau County, and Suffolk County, New York. Dime Community Bancshares, Inc. was founded in 1864 and is headquartered in Brooklyn, New York.

Cortland Bancorp Company Profile

Cortland Bancorp operates as the bank holding company for The Cortland Savings and Banking Company that provides commercial and retail banking services in Northeastern Ohio and Western Pennsylvania. Its deposit products include demand deposits, savings, money market, time deposit, and checking accounts. The company's loan portfolio comprises commercial loans consisting of commercial, financial loans, real estate construction and development loans, commercial real estate loans, small business lending, and trade financing; and consumer loans, such as residential real estate, home equity, and installment loans. It also provides brokerage and investment services; asset management services; night depository services, automated teller services, safe deposit boxes, and other services; and Internet and mobile banking options. As of February 4, 2019, it operated through 14 offices located in the Summit, Trumbull, Mahoning, Portage, and Ashtabula counties in Northeast Ohio. The company was founded in 1892 and is headquartered in Cortland, Ohio.

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