Financial Contrast: Suruga Bank (OTCMKTS:SUGBY) and JSB Financial (OTCMKTS:JFWV)

Profitability

This table compares JSB Financial and Suruga Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JSB Financial	N/A	N/A	N/A
Suruga Bank	21.93%	6.93%	0.58%

Risk & Volatility

JSB Financial has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, Suruga Bank has a beta of -0.07, meaning that its share price is 107% less volatile than the S&P 500.

Valuation and Earnings

This table compares JSB Financial and Suruga Bank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JSB Financial	N/A	N/A	$4.10 million	$15.95	5.78
Suruga Bank	$633.45 million	2.25	$106.09 million	$7.01	10.30

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

Institutional & Insider Ownership

0.1% of JSB Financial shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

JSB Financial pays an annual dividend of $2.50 per share and has a dividend yield of 2.7%. Suruga Bank pays an annual dividend of $1.41 per share and has a dividend yield of 2.0%. JSB Financial pays out 15.7% of its earnings in the form of a dividend. Suruga Bank pays out 20.1% 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. JSB Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Suruga Bank beats JSB Financial on 6 of the 11 factors compared between the two stocks.

About JSB Financial

JSB Financial Inc. operates as the bank holding company for Jefferson Security Bank that provides various banking products and services to individuals, agricultural businesses, small and medium-sized businesses, local government entities, and non-profit organizations. It accepts various deposit products, such as checking, savings, money market, individual retirement, overdraft protection, and sweep accounts, as well as certificates of deposit. The company's loan portfolio includes personal and vehicle, mortgage, construction, commercial, and home equity loans. It also offers ATM, online and mobile banking, bill pay, paperless statements, cash management, remote deposit capture, merchant, and credit and debit card services. The company was founded in 1869 and is headquartered in Shepherdstown, West Virginia.

About Suruga Bank

Suruga Bank Ltd. provides various banking and financial products and services to individuals and corporate customers in Japan. The company offers deposit products, such as time, ordinary, savings, foreign currency, and other deposits, as well as current and general accounts; card, housing, second house, startup, and business up term loans, as well as loans by purpose; credit and debit cards; overdrafts; and other financing products. It also provides investment trust, public bond, pension contribution, insurance, inheritance/trust, lottery, foreign currency, pay-easy, web direct, safe deposit box, external linkage, foreign remittance, fund management, e-combination, payment, nursing care/medical care/dispensing compensation receivable factoring, mortgage, and Internet and telephone banking services. In addition, the company offers staffing, money lending, guarantee, printing, leasing, and agency services. The company was incorporated in 1895 and is headquartered in Numazu, Japan.