Affinity Bancshares (NASDAQ:AFBI) and Peoples Financial (OTCMKTS:PFBX) Financial Review

Risk and Volatility

Peoples Financial has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, Affinity Bancshares has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Profitability

This table compares Peoples Financial and Affinity Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peoples Financial	52.05%	20.68%	2.38%
Affinity Bancshares	13.78%	6.05%	0.85%

Earnings and Valuation

This table compares Peoples Financial and Affinity Bancshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peoples Financial	$40.11 million	2.29	$21.70 million	$4.19	4.74
Affinity Bancshares	$49.99 million	2.47	$5.44 million	$1.07	18.36

Peoples Financial has higher earnings, but lower revenue than Affinity Bancshares. Peoples Financial is trading at a lower price-to-earnings ratio than Affinity Bancshares, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

32.8% of Peoples Financial shares are held by institutional investors. Comparatively, 39.3% of Affinity Bancshares shares are held by institutional investors. 28.1% of Peoples Financial shares are held by insiders. Comparatively, 12.4% of Affinity Bancshares shares are held 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.

Summary

Peoples Financial beats Affinity Bancshares on 7 of the 11 factors compared between the two stocks.

About Peoples Financial

Peoples Financial Corporation operates as the bank holding company for The Peoples Bank that provides banking, financial, and trust services to government entities, individuals, and small and commercial businesses in Mississippi. The company accepts various deposits, such as interest and non-interest-bearing checking accounts, savings accounts, certificates of deposit, and individual retirement accounts (IRAs). It offers business, commercial, real estate, construction, personal, and installment loans; and personal trust, agencies, and estate services, including living and testamentary trusts, executorships, guardianships, and conservatorships. In addition, the company provides self-directed IRAs; and escrow management, stock transfer, and bond paying agency accounts to corporate customers. Further, it offers other services consisting of safe deposit box rental, wire transfer, night drop facilities, collection, cash management, and Internet banking services. the company provides services to customers of various industries, such as seafood, retail, hospitality, hotel/motel, gaming, and construction. Peoples Financial Corporation was founded in 1896 and is headquartered in Biloxi, Mississippi.

About Affinity Bancshares

Affinity Bancshares, Inc. operates as the holding company for Affinity Bank that provides various banking products and services in Georgia. The company offers various deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts, as well as Kasasa (rewards) deposit program for checking accounts with interest rates or cash-back rewards. It offers commercial and residential real estate, commercial and industrial, residential mortgage, construction and land, and consumer loans, as well as balloon and adjustable-rate loans. In addition, the company invests in U.S. treasury securities; securities issued by the U.S. government and its agencies, or government sponsored enterprises, including mortgage-backed securities and collateralized mortgage obligations; corporate and municipal bonds; certificates of deposit in other financial institutions; and federal and money market funds. Further, it operates a virtual bank under the name FitnessBank, which accepts deposits and provides higher interest rates based on customers meeting certain fitness goals. Affinity Bancshares, Inc. was founded in 1928 and is headquartered in Covington, Georgia.