Live Oak Bancshares (NYSE:LOB) vs. Glen Burnie Bancorp (NASDAQ:GLBZ) Critical Survey

Glen Burnie Bancorp (NASDAQ:GLBZ) and Live Oak Bancshares (NYSE:LOB) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Insider and Institutional Ownership

9.8% of Glen Burnie Bancorp shares are held by institutional investors. Comparatively, 64.0% of Live Oak Bancshares shares are held by institutional investors. 14.5% of Glen Burnie Bancorp shares are held by insiders. Comparatively, 22.4% of Live Oak Bancshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Glen Burnie Bancorp pays an annual dividend of $0.10 per share and has a dividend yield of 2.3%. Live Oak Bancshares pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. Glen Burnie Bancorp pays out -200.0% of its earnings in the form of a dividend. Live Oak Bancshares pays out 4.2% 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. Glen Burnie Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Glen Burnie Bancorp has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500. Comparatively, Live Oak Bancshares has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500.

Profitability

This table compares Glen Burnie Bancorp and Live Oak Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Glen Burnie Bancorp	0.16%	0.14%	0.01%
Live Oak Bancshares	12.68%	11.77%	0.90%

Earnings & Valuation

This table compares Glen Burnie Bancorp and Live Oak Bancshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Glen Burnie Bancorp	$11.83 million	1.09	-$110,000.00	($0.05)	-88.00
Live Oak Bancshares	$1.04 billion	1.67	$105.87 million	$2.84	13.22

Live Oak Bancshares has higher revenue and earnings than Glen Burnie Bancorp. Glen Burnie Bancorp is trading at a lower price-to-earnings ratio than Live Oak Bancshares, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Glen Burnie Bancorp and Live Oak Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Glen Burnie Bancorp	1	0	0	0	1.00
Live Oak Bancshares	0	4	2	0	2.33

Live Oak Bancshares has a consensus target price of $46.40, indicating a potential upside of 23.60%. Given Live Oak Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe Live Oak Bancshares is more favorable than Glen Burnie Bancorp.

Summary

Live Oak Bancshares beats Glen Burnie Bancorp on 13 of the 16 factors compared between the two stocks.

About Glen Burnie Bancorp

Glen Burnie Bancorp operates as the bank holding company for The Bank of Glen Burnie that provides commercial and retail banking services to individuals, associations, partnerships, and corporations. The company offers savings accounts, money market deposit accounts, demand deposit accounts, NOW checking accounts, IRA and SEP accounts, and certificates of deposit. It also provides residential and commercial real estate, construction, land acquisition and development, and secured and unsecured commercial loans, as well as consumer instalment lending, such as indirect automobile lending services; and residential first and second mortgage loans, home equity lines of credit, and commercial mortgage loans. In addition, the company offers safe deposit boxes, money orders, night depositories, automated clearinghouse transactions, wire transfers, and automated teller machine (ATM) services, as well as electronic banking services, such as telephone and online banking, bill pay, card management and control, mobile app, merchant source capture, mobile deposit capture, Zelle, etc. Further, it provides treasury services, including wire transfer and ACH services, and debit cards. Additionally, the company engages in the acquisition and disposition of other real estate properties. It serves customers in northern Anne Arundel county and surrounding areas from its main office and branch in Glen Burnie, Maryland; and branch offices in Odenton, Riviera Beach, Crownsville, Severn, Linthicum, and Severna Park, Maryland. The company also operates a remote ATM located in Pasadena, Maryland. The company was founded in 1949 and is based in Glen Burnie, Maryland.

About Live Oak Bancshares

Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company that provides various commercial banking products and services to individuals, small businesses, and professionals in North Carolina, the United States. The company accepts various deposit products, including noninterest-bearing demand, as well as interest-bearing checking, money market, savings, and time deposits. It also offers commercial and industrial loans; construction and development loans; owner occupied and non-owner occupied collateral commercial real estate loans; and commercial land loans. In addition, the company provides settlement, accounting, and securitization services for government guaranteed loans; wealth and investment management services to high-net-worth individuals and families; investment advisory services to a series of funds focused on providing venture capital to new and emerging financial technology companies; and an on-site restaurant location to company employees and business visitors. Live Oak Bancshares, Inc. was incorporated in 2008 and is headquartered in Wilmington, North Carolina.