Reviewing Ballston Spa Bancorp (OTCMKTS:BSPA) and Meridian (NASDAQ:MRBK)

Meridian (NASDAQ:MRBK) and Ballston Spa Bancorp (OTCMKTS:BSPA) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Dividends

Meridian pays an annual dividend of $0.50 per share and has a dividend yield of 3.5%. Ballston Spa Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 2.3%. Meridian pays out 49.5% of its earnings in the form of a dividend.

Profitability

This table compares Meridian and Ballston Spa Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Meridian	6.00%	6.99%	0.49%
Ballston Spa Bancorp	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings for Meridian and Ballston Spa Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Meridian	0	1	1	0	2.50
Ballston Spa Bancorp	0	0	0	0	0.00

Meridian currently has a consensus target price of $16.00, indicating a potential upside of 13.39%. Given Meridian’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Meridian is more favorable than Ballston Spa Bancorp.

Insider and Institutional Ownership

58.6% of Meridian shares are owned by institutional investors. Comparatively, 2.4% of Ballston Spa Bancorp shares are owned by institutional investors. 14.0% of Meridian shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Meridian and Ballston Spa Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Meridian	$104.81 million	1.51	$13.24 million	$1.01	13.97
Ballston Spa Bancorp	$36.16 million	1.20	$4.78 million	N/A	N/A

Meridian has higher revenue and earnings than Ballston Spa Bancorp.

Volatility & Risk

Meridian has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Ballston Spa Bancorp has a beta of -0.29, meaning that its stock price is 129% less volatile than the S&P 500.

Summary

Meridian beats Ballston Spa Bancorp on 13 of the 14 factors compared between the two stocks.

About Meridian

Meridian Corporation operates as the holding company for Meridian Bank that provides commercial banking products and services in Pennsylvania, New Jersey, Delaware, Florida, and Maryland. The company offers various deposit products, such as demand non-interest bearing, demand interest bearing, savings accounts, money market accounts, and time deposits. It also provides commercial and industrial loans comprising business lines of credit, term loans, small business lending, lease financing, shared national credits, and other financing; commercial real estate, and land development and construction loans for residential and commercial projects; and consumer and home equity lending, private banking, merchant, and title and land settlement services. In addition, the company operates and originates mortgage loans for 1-4 family dwellings; and offers real estate holding, investment advisory, and equipment leasing services, as well as financial planning and wealth management services. Meridian Corporation was incorporated in 2004 and is headquartered in Malvern, Pennsylvania.

About Ballston Spa Bancorp

Ballston Spa Bancorp, Inc. operates as a holding company for Ballston Spa National Bank that provides a range of banking, financing, fiduciary, brokerage, and other financial services to corporate, municipal, and individual customers in the United States. It offers checking, money market, savings, health savings, and individual retirement accounts, as well as certificates of deposit; loan products, such as mortgage and home construction, improvement, and equity loans, auto, boat, RV, personal, commercial, and small business loans, as well as lines of credit and government programs; and debits and credit cards. The company also provides personal investment services, which include annuities, college savings plans, mutual funds, and life and long term care insurance products; retirement plans; college planning services; investment and asset management; trusteeship; estate settlement; special needs and disability trusts; and wealth management services. In addition, the company offers treasury management services; and merchant and payment processing services, as well as online and mobile banking, and digital payments. The company was founded in 1838 and is based in Ballston Spa, New York.