Contrasting SBT Bancorp (OTCMKTS:SBTB) and Peoples Bancorp (OTCMKTS:PEBO)

Peoples Bancorp (NASDAQ:PEBO) and SBT Bancorp (OTCMKTS:SBTB) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, earnings, profitability and analyst recommendations.

Earnings and Valuation

This table compares Peoples Bancorp and SBT Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Peoples Bancorp $234.37 million 1.77 $53.69 million $2.93 7.10
SBT Bancorp $21.39 million 3.31 $4.11 million N/A N/A

Peoples Bancorp has higher revenue and earnings than SBT Bancorp.

Analyst Recommendations

This is a summary of recent recommendations for Peoples Bancorp and SBT Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Peoples Bancorp 0 1 2 0 2.67
SBT Bancorp 0 0 0 0 N/A

Peoples Bancorp presently has a consensus price target of $34.50, indicating a potential upside of 65.87%. Given Peoples Bancorp’s higher possible upside, equities analysts clearly believe Peoples Bancorp is more favorable than SBT Bancorp.

Institutional and Insider Ownership

58.8% of Peoples Bancorp shares are owned by institutional investors. 2.7% of Peoples Bancorp shares are owned by insiders. Comparatively, 14.6% of SBT Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Peoples Bancorp and SBT Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Peoples Bancorp 14.66% 6.21% 0.80%
SBT Bancorp N/A N/A N/A

Dividends

Peoples Bancorp pays an annual dividend of $1.36 per share and has a dividend yield of 6.5%. SBT Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 1.2%. Peoples Bancorp pays out 46.4% of its earnings in the form of a dividend. Peoples Bancorp has raised its dividend for 4 consecutive years. Peoples Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Peoples Bancorp beats SBT Bancorp on 10 of the 14 factors compared between the two stocks.

Peoples Bancorp Company Profile

Peoples Bancorp Inc. operates as the holding company for Peoples Bank that provides commercial and retail banking products and services. The company accepts various deposit products, including demand deposit accounts, savings accounts, money market accounts, and certificates of deposit; and provides commercial real estate construction loans, other commercial real estate loans, commercial and industrial loans, residential real estate loans, home equity lines of credit, and indirect and other consumer loans. It also offers overdraft protection services; debit and automated teller machine (ATM) cards; corporate and personal trust services; safe deposit rental facilities; money orders and cashier's checks; and telephone, mobile, and Internet-based banking services. In addition, the company provides various life, health, and property and casualty insurance products; and fiduciary and asset management and administration services, as well as employee benefit plans. Further, it offers brokerage services through an unaffiliated registered broker-dealers; and credit cards to individuals and businesses, as well as provides merchant credit card transaction processing services through joint marketing arrangements with third parties. As of March 01, 2019, the company operated 81 locations, including 72 full-service bank branches and 76 ATMs in Ohio, West Virginia, and Kentucky. Peoples Bancorp Inc. was founded in 1902 and is based in Marietta, Ohio.

SBT Bancorp Company Profile

SBT Bancorp, Inc. operates as a bank holding company for The Simsbury Bank & Trust Company, Inc. that provides commercial banking services to individual consumers and small businesses in Connecticut. The company offers FDIC-insured checking, savings, IRA accounts, and 401K rollover accounts; commercial loans and residential mortgage programs, as well as home equity lines and loans; safe deposits and other customary non-deposit banking services; Internet banking services; and investment products. It operates through branch offices in the towns of Granby, Avon, Bloomfield, and West Hartford, Connecticut; and six ATMs. SBT Bancorp, Inc. was founded in 1995 and is based in Weatogue, Connecticut.

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