Old Line Bancshares, Inc. (MD) (NASDAQ:OLBK) and Lakeland Bancorp (NASDAQ:LBAI) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Insider & Institutional Ownership

50.5% of Old Line Bancshares, Inc. (MD) shares are owned by institutional investors. Comparatively, 57.8% of Lakeland Bancorp shares are owned by institutional investors. 12.4% of Old Line Bancshares, Inc. (MD) shares are owned by insiders. Comparatively, 4.3% of Lakeland Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Old Line Bancshares, Inc. (MD) has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Lakeland Bancorp has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Valuation & Earnings

This table compares Old Line Bancshares, Inc. (MD) and Lakeland Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Old Line Bancshares, Inc. (MD) $123.25 million 3.98 $27.22 million $2.19 13.16
Lakeland Bancorp $283.28 million 1.88 $70.67 million $1.43 7.39

Lakeland Bancorp has higher revenue and earnings than Old Line Bancshares, Inc. (MD). Lakeland Bancorp is trading at a lower price-to-earnings ratio than Old Line Bancshares, Inc. (MD), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Old Line Bancshares, Inc. (MD) and Lakeland Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Old Line Bancshares, Inc. (MD) 26.40% 9.56% 1.21%
Lakeland Bancorp 23.58% 9.42% 1.02%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Old Line Bancshares, Inc. (MD) and Lakeland Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Old Line Bancshares, Inc. (MD) 0 2 2 0 2.50
Lakeland Bancorp 0 0 2 0 3.00

Old Line Bancshares, Inc. (MD) currently has a consensus price target of $33.00, suggesting a potential upside of 14.46%. Lakeland Bancorp has a consensus price target of $17.00, suggesting a potential upside of 60.83%. Given Lakeland Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Lakeland Bancorp is more favorable than Old Line Bancshares, Inc. (MD).

Dividends

Old Line Bancshares, Inc. (MD) pays an annual dividend of $0.48 per share and has a dividend yield of 1.7%. Lakeland Bancorp pays an annual dividend of $0.50 per share and has a dividend yield of 4.7%. Old Line Bancshares, Inc. (MD) pays out 21.9% of its earnings in the form of a dividend. Lakeland Bancorp pays out 35.0% 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. Old Line Bancshares, Inc. (MD) has increased its dividend for 3 consecutive years and Lakeland Bancorp has increased its dividend for 10 consecutive years. Lakeland Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Old Line Bancshares, Inc. (MD) Company Profile

Old Line Bancshares, Inc. operates as the bank holding company for Old Line Bank that provides banking products and services to small and medium size businesses, entrepreneurs, professionals, consumers, and high net worth clients. The company accepts a range of deposit products, including demand, NOW, money market, and savings accounts, as well as certificates of deposit. It also offers commercial and industrial loans, such as lines of credit, revolving credit facilities, accounts receivable financing, term loans, equipment loans, small business administration loans, standby letters of credit, and unsecured loans; commercial real estate loans; funds for the construction of single family residences, financing to builders for the construction of pre-sold homes, and loans for multi-family housing, as well as home equity and home improvement loans; land acquisition and development loans; and consumer installment loans. In addition, the company provides safe deposit boxes, wire transfer services, automated teller machine services, and Internet and mobile banking services; debit, prepaid, and credit cards; commercial account services comprising direct deposit of payroll, overnight sweep, lockbox, and remote deposit capture; and investment services consisting of investment management, estate and succession planning, and brokerage services. As of December 31, 2018, it operated a total of 37 branches and 9 loan production offices in suburban Maryland counties of Anne Arundel, Calvert, Charles, Frederick, Harford, Howard, Prince George's, Montgomery, and St. Mary's; and Baltimore and Carroll. Old Line Bancshares, Inc. was founded in 1989 and is headquartered in Bowie, Maryland.

Lakeland Bancorp Company Profile

Lakeland Bancorp, Inc. operates as the bank holding company for Lakeland Bank that provides various banking products and services for individuals and small to medium sized businesses. It offers commercial banking services, including savings, money market, and time accounts, as well as demand deposits; lending solutions, such as short and medium term loans, lines of credit, letters of credit, inventory and accounts receivable financing, real estate construction loans, mortgage loans, small business administration loans, commercial real estate loans, commercial and industrial loans, and equipment financing, as well as merchant credit card services; and Internet banking, mobile banking, wire transfer, night depository, and cash management services. The company also provides consumer banking services, including checking accounts, savings accounts, money market accounts, certificates of deposit, secured and unsecured loans, consumer installment loans, mortgage loans, and safe deposit services, as well as Internet banking services. In addition, it offers investment and advisory services; and non-deposit products, which include securities brokerage services, including mutual funds and variable annuities. As of January 28, 2019, the company operated 54 branch offices throughout Bergen, Essex, Morris, Ocean, Passaic, Somerset, Sussex, and Union counties in New Jersey; 6 New Jersey regional commercial lending centers in Bernardsville, Jackson, Montville, Newton, Teaneck, and Waldwick; 1 commercial lending center in New York to serve the Hudson Valley region; and 1 commercial loan production office serving Middlesex and Monmouth counties in New Jersey. Lakeland Bancorp, Inc. was founded in 1989 and is headquartered in Oak Ridge, New Jersey.

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