Financial Analysis: Chemung Financial (NASDAQ:CHMG) vs. Mission Valley Bancorp (OTCMKTS:MVLY)

Chemung Financial (NASDAQ:CHMG) and Mission Valley Bancorp (OTCMKTS:MVLY) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Institutional and Insider Ownership

47.5% of Chemung Financial shares are held by institutional investors. Comparatively, 5.7% of Mission Valley Bancorp shares are held by institutional investors. 12.0% of Chemung Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Chemung Financial and Mission Valley Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chemung Financial	$95.74 million	2.42	$25.00 million	$5.22	9.35
Mission Valley Bancorp	N/A	N/A	$7.40 million	$2.22	6.76

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

Volatility & Risk

Chemung Financial has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500. Comparatively, Mission Valley Bancorp has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.

Dividends

Chemung Financial pays an annual dividend of $1.24 per share and has a dividend yield of 2.5%. Mission Valley Bancorp pays an annual dividend of $0.15 per share and has a dividend yield of 1.0%. Chemung Financial pays out 23.8% of its earnings in the form of a dividend. Mission Valley Bancorp pays out 6.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Chemung Financial and Mission Valley Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chemung Financial	0	1	0	0	2.00
Mission Valley Bancorp	0	0	0	0	N/A

Chemung Financial currently has a consensus price target of $49.00, suggesting a potential upside of 0.20%. Given Chemung Financial’s higher possible upside, analysts plainly believe Chemung Financial is more favorable than Mission Valley Bancorp.

Profitability

This table compares Chemung Financial and Mission Valley Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chemung Financial	16.02%	11.33%	0.79%
Mission Valley Bancorp	N/A	N/A	N/A

Summary

Chemung Financial beats Mission Valley Bancorp on 11 of the 13 factors compared between the two stocks.

About Chemung Financial

Chemung Financial Corporation operates as a bank holding company for Chemung Canal Trust Company that provides a range of banking, financing, fiduciary, and other financial services. The company provides demand, savings, and time deposits; non-interest and interest-bearing checking accounts; and insured money market accounts. It also offers commercial and agricultural loans comprising loans to small to mid-sized businesses; commercial and residential mortgage loans; and consumer loans, including home equity lines of credit and home equity term loans. In addition, the company provides interest rate swaps, letters of credit, employee benefit plans, insurance products, mutual fund, brokerage, and tax preparation services. Further, it offers guardian, custodian, trustee, investment, pension, estate planning, and employee benefit administrative services, as well as acts as an agent for pension, profit-sharing, and other employee benefit trusts. Chemung Financial Corporation was founded in 1833 and is headquartered in Elmira, New York.

About Mission Valley Bancorp

Mission Valley Bancorp operates as the bank holding company for Mission Valley Bank and Mission SBA Loan Servicing LLC that provides various banking products and services to individuals and corporate customers. The company's deposit products include non-interest-bearing and interest-bearing demand deposits, savings, and time deposits; and certificates of deposit. It also offers accounts receivable loans, advanced restaurant financing loans, commercial loans, real estate loans, small business administration loans, and term loans; consumer loans; and overdraft facilities; as well as credit and debit cards. In addition, the company provides lending services, such as underwriting, processing, closing, servicing, and referral/replacement services to other financial institutions. Mission Valley Bancorp was founded in 2001 and is headquartered in Sun Valley, California.