Analyzing American Bank (OTCMKTS:AMBK) and Valley National Bancorp (NASDAQ:VLY)

American Bank (OTCMKTS:AMBK) and Valley National Bancorp (NASDAQ:VLY) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Valuation and Earnings

This table compares American Bank and Valley National Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Bank	$40.89 million	2.34	$9.31 million	N/A	N/A
Valley National Bancorp	$1.84 billion	2.78	$380.27 million	$0.69	13.28

Valley National Bancorp has higher revenue and earnings than American Bank.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for American Bank and Valley National Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Bank	0	0	0	0	0.00
Valley National Bancorp	0	5	4	0	2.44

Valley National Bancorp has a consensus price target of $10.78, indicating a potential upside of 17.66%. Given Valley National Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Valley National Bancorp is more favorable than American Bank.

Dividends

American Bank pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. Valley National Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 4.8%. Valley National Bancorp pays out 63.8% of its earnings in the form of a dividend.

Profitability

This table compares American Bank and Valley National Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Bank	N/A	N/A	N/A
Valley National Bancorp	10.62%	5.14%	0.55%

Volatility and Risk

American Bank has a beta of -0.02, meaning that its stock price is 102% less volatile than the S&P 500. Comparatively, Valley National Bancorp has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Institutional & Insider Ownership

61.0% of Valley National Bancorp shares are held by institutional investors. 1.9% of Valley National Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Valley National Bancorp beats American Bank on 13 of the 14 factors compared between the two stocks.

About American Bank

American Bank Incorporated operates as the bank holding company for American Bank that provides various banking products and services to consumer, business, institutional, and governmental customers. It accepts a range of interest-bearing checking and money market accounts, savings accounts, certificates of deposit, and individual retirement accounts. The company also offers commercial, industrial, and other loans; commercial mortgage loans; commercial construction loans; residential mortgage loans; and consumer loans, including personal term loans, personal credit lines, automobile loans, home equity loans, and home equity lines of credit and loans. In addition, it provides online or mobile banking, automated teller machine, safe deposit box rental, and wire transfer services, as well as sells checks and checkbooks, and purchases investment securities. The company operates an office located in Allentown, Pennsylvania; and a loan production office in Blue Bell, Pennsylvania. The company was founded in 1997 and is based in Allentown, Pennsylvania.

About Valley National Bancorp

Valley National Bancorp operates as the holding company for Valley National Bank that provides various commercial, private banking, retail, insurance, and wealth management financial services products. It operates through Consumer Banking, Commercial Banking, and Treasury and Corporate other segments. The company offers non-interest bearing, savings, NOW, money market, and time deposit accounts; commercial and industrial, commercial real estate, residential mortgage, and automobile loans; loans secured by the cash surrender value of life insurance; home equity loans and lines of credit; automobile financing; and secured and unsecured other consumer loans. It also invests in various securities and interest-bearing deposits with other banks; and provides international banking services, such as standby and documentary letters of credit, and related products, as well as foreign exchange transactions, documentary collections, and foreign wire transfers services. In addition, the company offers investment services for individuals and small to medium sized businesses; and trusts investment strategies designed for various investment profiles and objectives. Further, it provides trust services, such as living and testamentary trusts, investment management, custodial and escrow services, and estate administration to individuals; tax credit advisory services; brokerage services; property and casualty, life, health, and title insurance agency services; and health care equipment lending and other commercial equipment leasing services, as well as owns real estate related investments. Additionally, the company offers online, mobile, and telephone banking services; receivable, payment, and security solution, merchant, payroll processing, and liquidity services; credit cards; and drive-in and night deposit, automated teller machine, remote deposit capture, and safe deposit facility services. Valley National Bancorp was founded in 1927 and is headquartered in Morristown, New Jersey.