Analyzing AMB Financial (OTCMKTS:AMFC) and Pathfinder Bancorp (NASDAQ:PBHC)

AMB Financial (OTCMKTS:AMFC) 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 earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Dividends

AMB Financial pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. Pathfinder Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.9%. Pathfinder Bancorp pays out -66.7% of its earnings in the form of a dividend. 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.

Earnings and Valuation

This table compares AMB Financial and Pathfinder Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMB Financial	$23.37 million	1.28	$3.42 million	N/A	N/A
Pathfinder Bancorp	$46.98 million	1.42	-$1.93 million	($0.60)	-22.75

AMB Financial has higher earnings, but lower revenue than Pathfinder Bancorp.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for AMB Financial and Pathfinder Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMB Financial	0	0	0	0	0.00
Pathfinder Bancorp	1	0	0	0	1.00

Profitability

This table compares AMB Financial and Pathfinder Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMB Financial	N/A	N/A	N/A
Pathfinder Bancorp	-4.16%	-2.74%	-0.23%

Insider and Institutional Ownership

1.2% of AMB Financial shares are held by institutional investors. Comparatively, 26.7% of Pathfinder Bancorp shares are held by institutional investors. 37.7% of AMB Financial shares are held by insiders. Comparatively, 15.4% of Pathfinder Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

AMB Financial has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500. Comparatively, Pathfinder Bancorp has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500.

Summary

Pathfinder Bancorp beats AMB Financial on 7 of the 13 factors compared between the two stocks.

About AMB Financial

AMB Financial Corp. operates as the bank holding company for American Community Bank of Indiana that provides financial services to customers in Indiana. The company provides savings, checking, health savings, individual retirement, and money market deposit accounts, as well as certificates of deposit. It offers business checking accounts, business debit and credit cards, and order business checks. In addition, the company offers mortgage loans, home equity loans, construction/lot loans, community loans, vehicle loans, and loan servicing; and commercial loans, commercial real estate loans, and SBA loans. Further, it provides merchant, remote deposit, wire services, fraud protection, and ACH origination; sweep services, zero balance accounts, lockbox services, vault services, and wealth management services; online, mobile, voice, and banking services; money order and e-statement services; cashier’s checks; and safe deposit boxes. The company was founded in 1910 and is headquartered in Saint John, Indiana.

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.