Critical Contrast: Glen Burnie Bancorp (NASDAQ:GLBZ) and Bank of New York Mellon (NYSE:BK)

Glen Burnie Bancorp (NASDAQ:GLBZ) and Bank of New York Mellon (NYSE:BK) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, valuation and dividends.

Insider & Institutional Ownership

9.8% of Glen Burnie Bancorp shares are owned by institutional investors. Comparatively, 85.3% of Bank of New York Mellon shares are owned by institutional investors. 14.1% of Glen Burnie Bancorp shares are owned by insiders. Comparatively, 0.1% of Bank of New York Mellon shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Glen Burnie Bancorp and Bank of New York Mellon”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Glen Burnie Bancorp	$11.95 million	1.36	$1.43 million	$0.35	16.00
Bank of New York Mellon	$17.49 billion	3.07	$3.29 billion	$4.32	16.63

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

Dividends

Glen Burnie Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 7.1%. Bank of New York Mellon pays an annual dividend of $1.88 per share and has a dividend yield of 2.6%. 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. Bank of New York Mellon pays out 43.5% of its earnings in the form of a dividend. Bank of New York Mellon has raised its dividend for 14 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Glen Burnie Bancorp and Bank of New York Mellon, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Glen Burnie Bancorp	0	0	0	0	N/A
Bank of New York Mellon	0	4	8	0	2.67

Bank of New York Mellon has a consensus price target of $69.38, suggesting a potential downside of 3.46%. Given Bank of New York Mellon’s higher possible upside, analysts clearly believe Bank of New York Mellon is more favorable than Glen Burnie Bancorp.

Profitability

This table compares Glen Burnie Bancorp and Bank of New York Mellon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Glen Burnie Bancorp	3.41%	3.04%	0.14%
Bank of New York Mellon	9.40%	11.87%	1.03%

Risk and Volatility

Glen Burnie Bancorp has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Bank of New York Mellon has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Summary

Bank of New York Mellon beats Glen Burnie Bancorp on 14 of the 16 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 Bank of New York Mellon

The Bank of New York Mellon Corporation provides a range of financial products and services in the United States and internationally. The company operates through Securities Services, Market and Wealth Services, Investment and Wealth Management, and other segments. The Securities Services segment offers custody, trust and depositary, accounting, exchange-traded funds, middle-office solutions, transfer agency, services for private equity and real estate funds, foreign exchange, securities lending, liquidity/lending services, and data analytics. This segment also provides trustee, paying agency, fiduciary, escrow and other financial, issuer, and support services for brokers and investors. The Market and Wealth Services segment offers clearing and custody, investment, wealth and retirement solutions, technology and enterprise data management, trading, and prime brokerage services. This segment also provides integrated cash management solutions, including payments, foreign exchange, liquidity management, receivables processing and payables management, and trade finance and processing services. The Investment and Wealth Management segment offers investment management strategies and distribution of investment products, investment management, custody, wealth and estate planning, private banking, investment, and information management services. The Other segment engages in the provision of leasing, corporate treasury, derivative and other trading, corporate and bank-owned life insurance, renewable energy investment, and business exit services. It serves central banks and sovereigns, financial institutions, asset managers, insurance companies, corporations, local authorities and high net-worth individuals, and family offices. The Bank of New York Mellon Corporation was founded in 1784 and is headquartered in New York, New York.