Critical Analysis: AMB Financial (OTCMKTS:AMFC) & Oconee Federal Financial (NASDAQ:OFED)

Profitability

This table compares Oconee Federal Financial and AMB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oconee Federal Financial	N/A	N/A	N/A
AMB Financial	N/A	N/A	N/A

Institutional & Insider Ownership

1.2% of AMB Financial shares are held by institutional investors. 5.1% of Oconee Federal Financial shares are held by company insiders. Comparatively, 37.7% of AMB Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Oconee Federal Financial pays an annual dividend of $0.40 per share and has a dividend yield of 3.1%. AMB Financial pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. Oconee Federal Financial pays out 33.9% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Oconee Federal Financial and AMB Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oconee Federal Financial	$16.85 million	4.50	$6.26 million	$1.18	11.01
AMB Financial	$18.97 million	0.96	$2.19 million	N/A	N/A

Oconee Federal Financial has higher earnings, but lower revenue than AMB Financial.

Volatility and Risk

Oconee Federal Financial has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, AMB Financial has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500.

Summary

AMB Financial beats Oconee Federal Financial on 5 of the 8 factors compared between the two stocks.

About Oconee Federal Financial

Oconee Federal Financial Corp. operates as a holding company for Oconee Federal Savings and Loan Association that provides various banking products and services in the Oconee and Pickens County areas of northwestern South Carolina, and the northeast area of Georgia in Stephens County and Rabun County. It offers deposit products, including demand, money market, NOW, savings, and individual retirement accounts, as well as certificates of deposit. The company’s loan portfolio comprises one-to-four family residential and multi-family real estate loans; home equity loans and lines of credit; nonresidential real estate loans; mortgage loans; construction and land loans; commercial and industrial loans; agricultural loans; and consumer and other loans, such as installment loans for various consumer purposes, including the purchase of automobiles, boats, and other legitimate personal purposes. Oconee Federal Financial Corp. was founded in 1924 and is based in Seneca, South Carolina. Oconee Federal Financial Corp. operates as a subsidiary of Oconee Federal, MHC.

About AMB Financial

AMB Financial Corp. operates as the bank holding company for American Community Bank of Indiana that provides financial services to customers in Indiana. The company provides savings, checking, health savings, individual retirement, and money market deposit accounts, as well as certificates of deposit. It offers business checking accounts, business debit and credit cards, and order business checks. In addition, the company offers mortgage loans, home equity loans, construction/lot loans, community loans, vehicle loans, and loan servicing; and commercial loans, commercial real estate loans, and SBA loans. Further, it provides merchant, remote deposit, wire services, fraud protection, and ACH origination; sweep services, zero balance accounts, lockbox services, vault services, and wealth management services; online, mobile, voice, and banking services; money order and e-statement services; cashier’s checks; and safe deposit boxes. The company was founded in 1910 and is headquartered in Saint John, Indiana.