Reviewing Glen Burnie Bancorp (NASDAQ:GLBZ) and QNB (OTCMKTS:QNBC)

Glen Burnie Bancorp (NASDAQ:GLBZ) and QNB (OTCMKTS:QNBC) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Earnings and Valuation

This table compares Glen Burnie Bancorp and QNB’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Glen Burnie Bancorp	$11.95 million	1.10	$1.43 million	$0.35	13.03
QNB	$73.92 million	1.44	$9.48 million	$2.19	13.25

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

Volatility and Risk

Glen Burnie Bancorp has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, QNB has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Dividends

Glen Burnie Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 8.8%. QNB pays an annual dividend of $1.48 per share and has a dividend yield of 5.1%. Glen Burnie Bancorp pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. QNB pays out 67.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and price targets for Glen Burnie Bancorp and QNB, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Glen Burnie Bancorp	0	0	0	0	N/A
QNB	0	0	0	0	N/A

Institutional and Insider Ownership

9.8% of Glen Burnie Bancorp shares are owned by institutional investors. Comparatively, 0.7% of QNB shares are owned by institutional investors. 14.1% of Glen Burnie Bancorp shares are owned by company insiders. Comparatively, 16.0% of QNB shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Glen Burnie Bancorp and QNB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Glen Burnie Bancorp	3.41%	3.06%	0.14%
QNB	10.28%	9.90%	0.50%

Summary

QNB beats Glen Burnie Bancorp on 10 of the 13 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 QNB

QNB Corp. operates as the bank holding company for QNB Bank that engages in the provision of commercial and retail banking products, and retail brokerage services. It offers various deposit products, which include demand and savings accounts, such as money market, interest-bearing demand, club, traditional statement savings, and online savings accounts; and time deposits comprising certificates of deposit and individual retirement accounts. The company also provides commercial and industrial loans, commercial and residential real estate loans, construction and land development loans, indirect lease financing, 1-4 family residential mortgage loans, home equity loans and lines of credit, and consumer loans. In addition, it offers retail brokerage and advisory services; credit cards and insurance products; merchant services; ATM and debit card services; and internet and mobile-banking, electronic bill pay, and remote deposit capture services. The company serves other community banks, thrift institutions, credit unions and other non-bank financial organizations, such as mutual fund companies, insurance companies, and brokerage companies. QNB Corp. was founded in 1877 and is based in Quakertown, Pennsylvania.