Reviewing Sturgis Bancorp (OTCMKTS:STBI) and Greene County Bancorp (NASDAQ:GCBC)

Sturgis Bancorp (OTCMKTS:STBI) and Greene County Bancorp (NASDAQ:GCBC) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.

Analyst Ratings

This is a summary of recent ratings for Sturgis Bancorp and Greene County Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sturgis Bancorp	0	0	0	0	0.00
Greene County Bancorp	0	1	0	0	2.00

Earnings and Valuation

This table compares Sturgis Bancorp and Greene County Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sturgis Bancorp	$56.82 million	0.88	$2.84 million	$3.43	6.71
Greene County Bancorp	$132.94 million	N/A	$31.14 million	$2.14	10.32

Greene County Bancorp has higher revenue and earnings than Sturgis Bancorp. Sturgis Bancorp is trading at a lower price-to-earnings ratio than Greene County Bancorp, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

13.4% of Greene County Bancorp shares are owned by institutional investors. 16.0% of Sturgis Bancorp shares are owned by company insiders. Comparatively, 59.2% of Greene County Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Sturgis Bancorp has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500. Comparatively, Greene County Bancorp has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500.

Dividends

Sturgis Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 3.1%. Greene County Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. Sturgis Bancorp pays out 21.0% of its earnings in the form of a dividend. Greene County Bancorp pays out 18.7% 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. Greene County Bancorp has raised its dividend for 11 consecutive years.

Profitability

This table compares Sturgis Bancorp and Greene County Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sturgis Bancorp	12.73%	N/A	N/A
Greene County Bancorp	26.03%	15.01%	1.19%

Summary

Greene County Bancorp beats Sturgis Bancorp on 12 of the 14 factors compared between the two stocks.

About Sturgis Bancorp

Sturgis Bancorp, Inc. operates as the bank holding company for Sturgis Bank & Trust Company that provides banking products and services in Michigan, the United States. The company offers checking, savings and health savings, and money market accounts; and certificates of deposit and individual retirement accounts. It also provides mortgage, automobile, savings secured, personal, home equity, equipment and machinery, government supported, and commercial real estate loans, as well as home equity lines of credit and business lines of credit; and credit cards. In addition, the company offers private banking, cashier checks, wire transfers, foreign drafts and foreign currency, overdraft protection, night depository, and notary services, as well as safe deposit boxes and residential mortgages. Further, it provides direct deposit, remote deposit capture, Visa check card, and checks reorder services; and investment and financial-advisory services, as well as commercial and consumer insurance and title insurance products. Additionally, the company offers estate and asset management services, such as estate settlements, trust administration, record keeping, investment management, and custody services; cash and treasury management; and online and mobile banking, bill pay, and mobile wallet services. It operates through 14 bank facilities and 4 full service standalone ATMs located in 12 communities in Michigan. Sturgis Bancorp, Inc. was founded in 1905 and is headquartered in Sturgis, Michigan.

About Greene County Bancorp

Greene County Bancorp, Inc. operates as a holding company for The Bank of Greene County that provides various financial services in the United States. The company's deposit products include savings, NOW accounts, money market accounts, certificates of deposit, non-interest bearing checking accounts, and individual retirement accounts. Its loan portfolio consists of residential, construction and land, and multifamily loans; commercial real estate mortgage loans; consumer loans, such as loans on new and used automobiles, personal loans, and home equity loans, as well as other consumer installment loans, including passbook loans, unsecured home improvement loans, recreational vehicle loans, and deposit account overdrafts; and commercial loans. The company was founded in 1889 and is based in Catskill, New York. Greene County Bancorp, Inc. is a subsidiary of Greene County Bancorp, MHC.