Gouverneur Bancorp Inc./MD (OTCMKTS:GOVB) and West Bancorporation (NASDAQ:WTBA) Head to Head Review

Gouverneur Bancorp Inc./MD (OTCMKTS:GOVB) and West Bancorporation (NASDAQ:WTBA) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Earnings & Valuation

This table compares Gouverneur Bancorp Inc./MD and West Bancorporation”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gouverneur Bancorp Inc./MD	$9.72 million	2.07	$730,000.00	$0.95	19.99
West Bancorporation	$98.28 million	4.08	$32.56 million	$2.06	11.43

West Bancorporation has higher revenue and earnings than Gouverneur Bancorp Inc./MD. West Bancorporation 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.

Insider & Institutional Ownership

21.6% of Gouverneur Bancorp Inc./MD shares are owned by institutional investors. Comparatively, 44.3% of West Bancorporation shares are owned by institutional investors. 5.4% of Gouverneur Bancorp Inc./MD shares are owned by insiders. Comparatively, 4.6% of West Bancorporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Gouverneur Bancorp Inc./MD and West Bancorporation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gouverneur Bancorp Inc./MD	0	0	0	0	0.00
West Bancorporation	0	3	1	0	2.25

West Bancorporation has a consensus price target of $24.75, indicating a potential upside of 5.14%. Given West Bancorporation’s stronger consensus rating and higher possible upside, analysts plainly believe West Bancorporation is more favorable than Gouverneur Bancorp Inc./MD.

Dividends

Gouverneur Bancorp Inc./MD pays an annual dividend of $0.18 per share and has a dividend yield of 0.9%. West Bancorporation pays an annual dividend of $1.00 per share and has a dividend yield of 4.2%. Gouverneur Bancorp Inc./MD pays out 18.9% of its earnings in the form of a dividend. West Bancorporation pays out 48.5% 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.

Volatility and Risk

Gouverneur Bancorp Inc./MD has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, West Bancorporation has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gouverneur Bancorp Inc./MD	9.59%	N/A	N/A
West Bancorporation	17.30%	14.88%	0.95%

Summary

West Bancorporation beats Gouverneur Bancorp Inc./MD on 13 of the 16 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 West Bancorporation

West Bancorporation, Inc. operates as the financial holding company provides community banking and trust services to individuals and small- to medium-sized businesses in the United States. It offers deposit services, including checking, savings, and money market accounts, as well as time certificates of deposit. The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans. In addition, it offers online and mobile banking, treasury management services including cash management, client-generated automated clearing house transactions, remote deposit, and fraud protection services; merchant credit card processing and corporate credit cards; and administration of estates, conservatorships, personal trusts, and agency accounts. The company was founded in 1893 and is headquartered in West Des Moines, Iowa.