Head-To-Head Review: Potomac Bancshares (OTCMKTS:PTBS) versus Madison County Financial (OTCMKTS:MCBK)

Volatility and Risk

Madison County Financial has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500. Comparatively, Potomac Bancshares has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500.

Dividends

Madison County Financial pays an annual dividend of $0.61 per share and has a dividend yield of 1.8%. Potomac Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 2.3%. Potomac Bancshares pays out 22.6% of its earnings in the form of a dividend.

Insider & Institutional Ownership

5.3% of Potomac Bancshares shares are owned by institutional investors. 16.9% of Madison County Financial shares are owned by company insiders. Comparatively, 4.4% of Potomac Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Madison County Financial and Potomac Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Madison County Financial	N/A	N/A	N/A
Potomac Bancshares	N/A	N/A	N/A

Valuation and Earnings

This table compares Madison County Financial and Potomac Bancshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Madison County Financial	$32.34 million	2.75	$6.50 million	N/A	N/A
Potomac Bancshares	$54.90 million	2.16	$11.95 million	$2.66	9.94

Potomac Bancshares has higher revenue and earnings than Madison County Financial.

Summary

Potomac Bancshares beats Madison County Financial on 5 of the 8 factors compared between the two stocks.

About Madison County Financial

Madison County Financial, Inc. operates as the holding company for Madison County Bank that provides banking and financial services to individual and corporate customers in Nebraska, the United States. It offers checking, money market savings, savings, and individual retirement accounts; certificates of deposit; credit and debit cards; home loans; and consumer loans, including home equity lines of credit, second mortgage, home improvement, recreational vehicle, personal, and overdraft protection loans, as well as loans for automobiles, trucks, and vans. The company also provides agricultural real estate, machinery and equipment, livestock and crop, and operating loans; and commercial real estate, construction, investment property, and working capital loans, as well as equipment financing services. In addition, it offers online and mobile banking, and merchant services. The company was formerly known as Madison County Holding Company and changed its name to Madison County Financial, Inc. in October 2012. Madison County Financial, Inc. was founded in 1888 and is headquartered in Madison, Nebraska.

About Potomac Bancshares

Potomac Bancshares, Inc. operates as the bank holding company for Bank of Charles Town that provides various banking products and services to individuals and businesses. The company offers checking, savings, and individual retirement accounts; and certificates of deposit (CD). It also provides personal loans, including new and used vehicle, home equity, unsecured home improvement and personal, retail equipment, and lot loans, as well as loans secured by CD, and home equity lines of credit; commercial loans for building or office purchases, commercial real estate and construction, and production and administrative equipment purchases; lines of credit; mortgage, commercial, term, residential and commercial construction, commercial real estate, and agricultural loans; and credit and debit cards. In addition, the company offers Card Pay, cash management, merchant, financial planning, trust and estate, investment management, wealth management, full-service brokerage, retirement and insurance planning and products, asset allocation and management, and college planning services, as well as telephone, mobile, and online banking services. Potomac Bancshares, Inc. was founded in 1871 and is based in Charles Town, West Virginia.