Comparing Gouverneur Bancorp Inc./MD (OTCMKTS:GOVB) and Sturgis Bancorp (OTCMKTS:STBI)

Risk & Volatility

Gouverneur Bancorp Inc./MD has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, Sturgis Bancorp has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500.

Dividends

Gouverneur Bancorp Inc./MD pays an annual dividend of $0.18 per share and has a dividend yield of 1.0%. Sturgis Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 3.1%. Gouverneur Bancorp Inc./MD pays out 21.2% of its earnings in the form of a dividend. Sturgis Bancorp pays out 19.8% 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. Sturgis Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Gouverneur Bancorp Inc./MD and Sturgis Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gouverneur Bancorp Inc./MD	$9.72 million	1.85	$730,000.00	$0.85	20.18
Sturgis Bancorp	$56.82 million	0.84	$2.84 million	$3.43	6.42

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

Profitability

This table compares Gouverneur Bancorp Inc./MD and Sturgis Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gouverneur Bancorp Inc./MD	8.69%	N/A	N/A
Sturgis Bancorp	12.73%	N/A	N/A

Insider and Institutional Ownership

21.6% of Gouverneur Bancorp Inc./MD shares are held by institutional investors. 5.4% of Gouverneur Bancorp Inc./MD shares are held by company insiders. Comparatively, 16.0% of Sturgis Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Sturgis Bancorp beats Gouverneur Bancorp Inc./MD on 7 of the 11 factors compared between the two stocks.

About Gouverneur Bancorp Inc./MD

Gouverneur Bancorp, Inc. operates as the holding company for Gouverneur Savings and Loan Association that provides various banking products and services to individuals and businesses in New York. It accepts passbook savings, NOW, money market deposit, and checking accounts, as well as certificates of deposit. The company's loan products include mortgage loans, one- to four-family residential loans, commercial real estate loans, and multi-family residential real estate loans, residential and commercial construction loans, commercial land loans, home equity loans, lines of credit, commercial loans, automobiles, motorcycles, campers, boats, and other recreational vehicles, as well as personal secured and unsecured loans. It also invests in municipal bonds, U.S. Treasury securities, U.S. Government agencies and government-sponsored obligations, and mortgage-backed securities. In addition, the company offers online, mobile, bill pay, and telephone banking; electronic or paper statements; and ATM, debit cards, direct deposits, mobile remote deposit capture, automatic payments and transfers, bank checks, wire transfers, and safe deposit box services. It serves primarily the St. Lawrence County, and Jefferson and Lewis counties in New York State. The company was founded in 1892 and is headquartered in Gouverneur, New York.

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.