Contrasting Prime Meridian (OTCMKTS:PMHG) & Washington Trust Bancorp (NASDAQ:WASH)

Washington Trust Bancorp (NASDAQ:WASHGet Free Report) and Prime Meridian (OTCMKTS:PMHGGet Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Profitability

This table compares Washington Trust Bancorp and Prime Meridian’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Washington Trust Bancorp 13.19% 10.65% 0.69%
Prime Meridian 23.82% 13.19% 1.16%

Institutional and Insider Ownership

68.5% of Washington Trust Bancorp shares are held by institutional investors. Comparatively, 15.5% of Prime Meridian shares are held by institutional investors. 1.4% of Washington Trust Bancorp shares are held by company insiders. Comparatively, 25.9% of Prime Meridian shares are held by company 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.

Risk & Volatility

Washington Trust Bancorp has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Prime Meridian has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Washington Trust Bancorp and Prime Meridian, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Washington Trust Bancorp 1 1 0 0 1.50
Prime Meridian 0 0 0 0 N/A

Valuation and Earnings

This table compares Washington Trust Bancorp and Prime Meridian’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Washington Trust Bancorp $364.80 million 1.29 $48.18 million $2.81 9.84
Prime Meridian $32.67 million 2.28 $9.68 million N/A N/A

Washington Trust Bancorp has higher revenue and earnings than Prime Meridian.

Dividends

Washington Trust Bancorp pays an annual dividend of $2.24 per share and has a dividend yield of 8.1%. Prime Meridian pays an annual dividend of $0.25 per share and has a dividend yield of 1.1%. Washington Trust Bancorp pays out 79.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Prime Meridian beats Washington Trust Bancorp on 6 of the 11 factors compared between the two stocks.

About Washington Trust Bancorp

(Get Free Report)

Washington Trust Bancorp, Inc. operates as the bank holding company for The Washington Trust Company, of Westerly that offers various banking and financial services to individuals and businesses. The company operates in two segments, Commercial Banking and Wealth Management Services. The Commercial Banking segment provides deposit accounts, including interest-bearing and noninterest-bearing demand deposits, NOW and savings accounts, money market and retirement deposit accounts, and time deposits; various commercial and retail lending products, such as commercial real estate loans, including commercial mortgages and construction loans; commercial and industrial loans; residential real estate loans that consist of mortgage and homeowner construction loans; and consumer loans comprising home equity loans and lines of credit, personal installment loans, and loans to individuals secured by general aviation aircraft. This segment also offers debit card, automated teller machine, telephone banking, internet banking, mobile banking, remote deposit capture, and other cash management services. The Wealth Management Services segment provides investment management; financial planning; personal trust and estate services, such as trustee, personal representative, custodian, and guardian; and settlement of decedents' estates, as well as institutional trust services comprising custody and fiduciary services. This segment serves personal and institutional clients. The company also operates as a licensed broker-dealer; and offers variable annuities and college savings plans. Washington Trust Bancorp, Inc. was founded in 1800 and is headquartered in Westerly, Rhode Island.

About Prime Meridian

(Get Free Report)

Prime Meridian Holding Company operates as the bank holding company for Prime Meridian Bank that provides various consumer and commercial banking services to individuals and businesses. The company accepts various deposits, such as checking, money market, savings, term certificate of deposit, demand interest-bearing and noninterest-bearing, health savings, NOW, and escrow accounts, as well as retirement savings plans and time deposits. Its loan products include commercial real estate, residential real estate and home equity, small business administration, construction, equipment, and commercial loans; and consumer and other loans comprising financing of automobiles, boats, and recreational vehicles, as well as issues standby letters and business lines of credit. The company also offers debit and credit cards; mobile banking, remote and mobile deposit, Apple Pay, bank-to-bank transfer, and online banking services; and safe deposit, wire transfer, foreign exchange, direct deposits, notary, night depository, official checks, domestic collections, bank drafts, automated teller services, drive-in tellers, merchant card, and banking by mail services, as well as invests in securities. Prime Meridian Holding Company was founded in 2008 and is headquartered in Tallahassee, Florida.

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