Analyzing BEO Bancorp (OTCMKTS:BEOB) and MainStreet Bancshares (NASDAQ:MNSB)

Dividends

BEO Bancorp pays an annual dividend of $1.25 per share and has a dividend yield of 1.6%. MainStreet Bancshares pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. MainStreet Bancshares pays out -23.3% of its earnings in the form of a dividend.

Profitability

This table compares BEO Bancorp and MainStreet Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BEO Bancorp	N/A	N/A	N/A
MainStreet Bancshares	-7.24%	2.96%	0.27%

Institutional & Insider Ownership

52.3% of MainStreet Bancshares shares are owned by institutional investors. 9.3% of MainStreet Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares BEO Bancorp and MainStreet Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BEO Bancorp	$51.01 million	1.93	$14.21 million	N/A	N/A
MainStreet Bancshares	$66.85 million	2.18	-$9.98 million	($1.72)	-11.01

BEO Bancorp has higher earnings, but lower revenue than MainStreet Bancshares.

Volatility and Risk

BEO Bancorp has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500. Comparatively, MainStreet Bancshares has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Summary

MainStreet Bancshares beats BEO Bancorp on 9 of the 11 factors compared between the two stocks.

About BEO Bancorp

BEO Bancorp operates as the bank holding company for Bank of Eastern Oregon that provides commercial and consumer financing, banking and mortgage lending, and other services in Northeastern Oregon and Southeastern Washington. The company offers checking, money market, time deposits, and savings accounts; and certificates of deposit. It also provides commercial, agricultural, real estate, installment, credit card, mortgage, term, home, construction, farm, and refinancing loans; lines of credit; home enhancement loan programs; Internet banking and bill payment services; business sweep and banking services; and automated teller machines and safe deposit facilities, as well as originates and sells mortgage loans into the secondary market. The company was founded in 1945 and is based in Heppner, Oregon.

About MainStreet Bancshares

MainStreet Bancshares, Inc. operates as the bank holding company for MainStreet Bank that provides various banking products and services for individuals, small to medium-sized businesses, and professional service organizations. The company offers demand, NOW, money market, savings, and sweep accounts, as well as certificates of deposit; business and consumer checking, interest-bearing checking, business account analysis, and other depository services; and cash management, wire transfer, check imaging, bill pay, remote deposit capture, and courier services. It also provides commercial loans, include government contract receivables, plant and equipment, general working capital, contract administration, and acquisition loans; commercial real estate, real estate construction, and residential real estate loans; and consumer loans comprising term loans and overdraft protection, as well as debit and credit cards. In addition, the company offers deposit insurance solutions; remote deposit of checks; and internet bill payment, online cash management, and online and mobile banking services. It operates in Herndon, Fairfax, McLean, Leesburg, Clarendon, and Washington D.C., as well as automated teller machines. The company was incorporated in 2003 and is headquartered in Fairfax, Virginia.