Financial Review: Frederick County Bancorp (MD) (OTCMKTS:FCBI) vs. Magyar Bancorp (NASDAQ:MGYR)

Institutional and Insider Ownership

46.3% of Magyar Bancorp shares are owned by institutional investors. 10.5% of Magyar Bancorp shares are owned by company insiders. Comparatively, 32.2% of Frederick County Bancorp (MD) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Magyar Bancorp and Frederick County Bancorp (MD)”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magyar Bancorp	$52.18 million	1.76	$7.78 million	$1.24	11.44
Frederick County Bancorp (MD)	$18.62 million	3.11	$2.96 million	N/A	N/A

Magyar Bancorp has higher revenue and earnings than Frederick County Bancorp (MD).

Dividends

Magyar Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 1.4%. Frederick County Bancorp (MD) pays an annual dividend of $0.32 per share and has a dividend yield of 0.9%. Magyar Bancorp pays out 16.1% of its earnings in the form of a dividend.

Risk & Volatility

Magyar Bancorp has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500. Comparatively, Frederick County Bancorp (MD) has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500.

Profitability

This table compares Magyar Bancorp and Frederick County Bancorp (MD)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magyar Bancorp	14.91%	7.22%	0.84%
Frederick County Bancorp (MD)	11.41%	N/A	N/A

Summary

Magyar Bancorp beats Frederick County Bancorp (MD) on 7 of the 12 factors compared between the two stocks.

About Magyar Bancorp

Magyar Bancorp, Inc. operates as the holding company for Magyar Bank that provides various consumer and commercial banking services to individuals, businesses, and nonprofit organizations in New Jersey, the United States. It accepts various deposit accounts, including demand, savings, NOW, money market, and retirement accounts, as well as certificates of deposit. The company also provides residential mortgage loans, multi-family and commercial real estate mortgage loans, home equity loans and lines of credit, commercial business loans, and construction loans, as well as small business administration loans. In addition, it offers non-deposit investment products and financial planning services, including insurance products, fixed and variable annuities, and retirement planning for individual and commercial customers; and buys, sells, and holds investment securities. The company has branch offices located in New Brunswick, North Brunswick, South Brunswick, Branchburg, Bridgewater, and Edison, New Jersey. Magyar Bancorp, Inc. was founded in 1922 and is headquartered in New Brunswick, New Jersey.

About Frederick County Bancorp (MD)

Frederick County Bancorp, Inc. operates as the holding company for Frederick County Bank that provides various banking services to individuals and commercial enterprises in the Frederick County, Maryland. It offers deposit products, including personal checking accounts, savings accounts, money market accounts, certificates of deposit, individual retirement accounts, and health savings accounts; and business checking accounts, savings and money market accounts, and certificates of deposits. The company provides home equity, home equity fixed rate, mortgage, installment, vehicle, and unsecured loans, as well as home equity line of credit and lines of credit; and commercial loans, such as term loans, lines of credit, letters of credit, and real estate finance. It also offers cash management services comprising automated clearing house, wire origination, remote deposit capture, and zero balance account services. In addition, the company provides mobile deposit capture, overdraft protection, debit and credit card, automated teller machine, and night depository services; and business courier and merchant processing services, as well as online banking and bill pay services. The company was founded in 2001 and is headquartered in Frederick, Maryland.