Reviewing Embassy Bancorp (OTCMKTS:EMYB) and Avidia Bancorp (NYSE:AVBC)

Embassy Bancorp (OTCMKTS:EMYB) and Avidia Bancorp (NYSE:AVBC) are both financial services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

0.7% of Embassy Bancorp shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Embassy Bancorp and Avidia Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Embassy Bancorp	N/A	N/A	N/A
Avidia Bancorp	-2.23%	-1.32%	-0.12%

Dividends

Embassy Bancorp pays an annual dividend of $0.06 per share and has a dividend yield of 0.3%. Avidia Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 1.0%. Embassy Bancorp pays out 6.9% of its earnings in the form of a dividend. Avidia Bancorp pays out 83.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent recommendations for Embassy Bancorp and Avidia Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embassy Bancorp	0	0	0	0	0.00
Avidia Bancorp	1	0	0	0	1.00

Valuation and Earnings

This table compares Embassy Bancorp and Avidia Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embassy Bancorp	N/A	N/A	N/A	$0.87	22.40
Avidia Bancorp	$100.70 million	3.89	-$3.29 million	$0.24	81.23

Embassy Bancorp has higher earnings, but lower revenue than Avidia Bancorp. Embassy Bancorp is trading at a lower price-to-earnings ratio than Avidia Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Embassy Bancorp beats Avidia Bancorp on 6 of the 10 factors compared between the two stocks.

About Embassy Bancorp

Embassy Bancorp, Inc. operates as the bank holding company for the Embassy Bank for the Lehigh Valley that provides traditional banking and related financial services to individual, business, and government customers in Pennsylvania. The company offers demand deposits, savings, money market, time deposits, individual retirement, and NOW accounts; and certificates of deposit. It provides loans, such as secured fixed and variable rate loans; commercial lending; consumer lending, including mortgage loans, first time home buyer mortgages, secured home equity loans, lines of credit; residential mortgage loans; and commercial mortgage/construction loans. In addition, the company offers various other services, such as treasurer and certified check, wire transfer, personal financial and cash management, credit/debit card merchant processing, direct deposit/ACH, ACH origination, fraud detection, cash and escrow management, safe deposit box, remote deposit capture, mobile banking, night depository, bank by mail, savings bond redemptions, person to person payment, positive pay, automated teller machine, and online banking and bill pay services, as well as gift, commercial and consumer credit, and ATM and debit cards. The company was founded in 2001 and is headquartered in Bethlehem, Pennsylvania.

About Avidia Bancorp

Avidia Bancorp Inc. is a chartered stock savings bank. It operates full-service banking offices principally in western Middlesex County and eastern Worcester County, in Massachusetts. Avidia Bancorp Inc. is based in HUDSON, Mass.