Critical Contrast: AmeriServ Financial (NASDAQ:ASRV) vs. Bank of America (NASDAQ:BAC)

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AmeriServ Financial (NASDAQ:ASRV) and Bank of America (NYSE:BAC) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Valuation and Earnings

This table compares AmeriServ Financial and Bank of America’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AmeriServ Financial $61.32 million 1.16 $7.77 million N/A N/A
Bank of America $110.58 billion 2.39 $28.15 billion $2.61 10.64

Bank of America has higher revenue and earnings than AmeriServ Financial.

Insider and Institutional Ownership

42.4% of AmeriServ Financial shares are owned by institutional investors. Comparatively, 68.2% of Bank of America shares are owned by institutional investors. 9.7% of AmeriServ Financial shares are owned by company insiders. Comparatively, 0.2% of Bank of America shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

AmeriServ Financial has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Bank of America has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500.

Profitability

This table compares AmeriServ Financial and Bank of America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AmeriServ Financial 12.66% 8.06% 0.67%
Bank of America 25.42% 11.79% 1.22%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for AmeriServ Financial and Bank of America, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AmeriServ Financial 0 0 0 0 N/A
Bank of America 0 9 7 0 2.44

Bank of America has a consensus target price of $32.82, suggesting a potential upside of 18.22%. Given Bank of America’s higher probable upside, analysts clearly believe Bank of America is more favorable than AmeriServ Financial.

Dividends

AmeriServ Financial pays an annual dividend of $0.10 per share and has a dividend yield of 2.5%. Bank of America pays an annual dividend of $0.60 per share and has a dividend yield of 2.2%. Bank of America pays out 23.0% of its earnings in the form of a dividend. AmeriServ Financial has raised its dividend for 3 consecutive years and Bank of America has raised its dividend for 5 consecutive years.

Summary

Bank of America beats AmeriServ Financial on 12 of the 15 factors compared between the two stocks.

AmeriServ Financial Company Profile

AmeriServ Financial Inc. operates as the bank holding company for AmeriServ Financial Bank that provides various consumer, mortgage, and commercial financial products. It offers retail banking services, such as demand, savings, and time deposits; checking and money market accounts; secured and unsecured consumer loans, and mortgage loans; and safe deposit boxes, holiday club accounts, money orders, and traveler's checks. The company also provides lending, depository, and related financial services, such as commercial real estate mortgage loans, short and medium-term loans, revolving credit arrangements, lines of credit, inventory and accounts receivable financing, real estate-construction loans, business savings accounts, certificates of deposit, wire transfers, night depository, and lock box services to commercial, industrial, financial, and governmental customers. In addition, the company offers personal trust products and services, including personal portfolio investment management, estate planning and administration, custodial services, and pre-need trusts; institutional trust products and services comprising 401(k) plans, defined benefit and defined contribution employee benefit plans, and individual retirement accounts; financial services consisting of the sale of mutual funds, annuities, and insurance products; and union collective investment funds to invest union pension dollars in construction projects that utilize union labor. Further, it engages in underwriting as reinsurer of credit life and disability insurance. The company operates through a network of 16 banking locations in Allegheny, Cambria, Centre, Somerset, Westmoreland counties, Pennsylvania, and Washington County, Maryland; and operates 17 automated bank teller machines. AmeriServ Financial, Inc. is headquartered in Johnstown, Pennsylvania.

Bank of America Company Profile

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments worldwide. It operates through four segments: Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking, and Global Markets. The Consumer Banking segment offers traditional and money market savings accounts, CDs and IRAs, noninterest- and interest-bearing checking accounts, and investment accounts and products; and credit and debit cards, residential mortgages, and home equity loans, as well as direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. This segment provides its products and services through approximately 4,300 financial centers; 16,300 ATMs; call centers; and digital banking platforms. The GWIM segment offers investment management, brokerage, banking, and trust and retirement products; and wealth management solutions targeted to high net worth and ultra high net worth clients, as well as customized solutions to meet clients' wealth structuring, investment management, and trust and banking needs, including specialty asset management services. The Global Banking segment provides lending products and services, including commercial loans, leases, commitment facilities, trade finance, and real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, and short-term investing options; working capital management solutions; and debt and equity underwriting and distribution, and merger-related and other advisory services. The Global Markets segment offers market-making, financing, securities clearing, settlement, and custody services, as well as risk management, foreign exchange, fixed-income, and mortgage-related products. Bank of America Corporation was founded in 1874 and is headquartered in Charlotte, North Carolina.

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