Chemung Financial (NASDAQ:CHMG) and Old Line Bancshares, Inc. (MD) (NASDAQ:OLBK) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Volatility and Risk

Chemung Financial has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, Old Line Bancshares, Inc. (MD) has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Profitability

This table compares Chemung Financial and Old Line Bancshares, Inc. (MD)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chemung Financial 22.32% 10.95% 1.01%
Old Line Bancshares, Inc. (MD) 22.16% 10.18% 1.25%

Dividends

Chemung Financial pays an annual dividend of $1.04 per share and has a dividend yield of 2.2%. Old Line Bancshares, Inc. (MD) pays an annual dividend of $0.48 per share and has a dividend yield of 1.8%. Chemung Financial pays out 27.4% of its earnings in the form of a dividend. Old Line Bancshares, Inc. (MD) pays out 21.9% 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. Old Line Bancshares, Inc. (MD) has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations for Chemung Financial and Old Line Bancshares, Inc. (MD), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chemung Financial 0 2 0 0 2.00
Old Line Bancshares, Inc. (MD) 0 1 2 0 2.67

Chemung Financial presently has a consensus target price of $47.00, suggesting a potential downside of 2.77%. Old Line Bancshares, Inc. (MD) has a consensus target price of $34.50, suggesting a potential upside of 29.65%. Given Old Line Bancshares, Inc. (MD)’s stronger consensus rating and higher probable upside, analysts plainly believe Old Line Bancshares, Inc. (MD) is more favorable than Chemung Financial.

Institutional & Insider Ownership

35.2% of Chemung Financial shares are held by institutional investors. Comparatively, 50.4% of Old Line Bancshares, Inc. (MD) shares are held by institutional investors. 19.0% of Chemung Financial shares are held by company insiders. Comparatively, 12.4% of Old Line Bancshares, Inc. (MD) shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Chemung Financial and Old Line Bancshares, Inc. (MD)’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chemung Financial $87.63 million 2.67 $19.63 million $3.80 12.72
Old Line Bancshares, Inc. (MD) $123.25 million 3.68 $27.22 million $2.19 12.15

Old Line Bancshares, Inc. (MD) has higher revenue and earnings than Chemung Financial. Old Line Bancshares, Inc. (MD) is trading at a lower price-to-earnings ratio than Chemung Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Old Line Bancshares, Inc. (MD) beats Chemung Financial on 11 of the 17 factors compared between the two stocks.

About Chemung Financial

Chemung Financial Corporation operates as a bank. The bank offers demand deposits and interest and non-interest bearing time and savings deposits. It's deposits include jumbo deposits and retail time deposits. The bank provides commercial and industrial loans, consumer loans, commercial real estate loans, and other loans and leases. The company offers consumer loans, including credit card loans, revolving credit plans, and automotive loans. The company offers commercial real estate loans for land development and on-site construction of industrial, commercial, residential, or farm buildings in the United States; real estate-backed residential loans; and commercial loans collateralized by real estate properties. The company offers domestic and foreign commercial and industrial loans. The company offers loans for the purpose of financing agricultural production; loans which include planned and unplanned overdrafts, to governments in non-U.S. countries, to their official institutions, and to international and regional institutions. For 2017, it has an asset value of 1.7 million USD. The bank has generated a net income of 7,430 USD in December 31, 2017. Chemung Financial Corporation was founded in 1833 and is based in Elmira, New York.

About Old Line Bancshares, Inc. (MD)

Old Line Bancshares, Inc. operates as the bank holding company for Old Line Bank that provides banking products and services to small and medium size businesses, entrepreneurs, professionals, consumers, and high net worth clients. The company accepts a range of deposit products, including demand, NOW, money market, and savings accounts, as well as certificates of deposit. It also offers commercial and industrial loans, such as lines of credit, revolving credit facilities, accounts receivable financing, term loans, equipment loans, small business administration loans, standby letters of credit, and unsecured loans; commercial real estate loans; funds for the construction of single family residences, financing to builders for the construction of pre-sold homes, and loans for multi-family housing, as well as home equity and home improvement loans; land acquisition and development loans; and consumer installment loans. In addition, the company provides safe deposit boxes, wire transfer services, automated teller machine services, and Internet and mobile banking services; debit, prepaid, and credit cards; commercial account services comprising direct deposit of payroll, overnight sweep, lockbox, and remote deposit capture; and investment services consisting of investment management, estate and succession planning, and brokerage services. As of December 31, 2018, it operated a total of 37 branches and 9 loan production offices in suburban Maryland counties of Anne Arundel, Calvert, Charles, Frederick, Harford, Howard, Prince George's, Montgomery, and St. Mary's; and Baltimore and Carroll. Old Line Bancshares, Inc. was founded in 1989 and is headquartered in Bowie, Maryland.

Receive News & Ratings for Chemung Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Chemung Financial and related companies with MarketBeat.com's FREE daily email newsletter.