Critical Contrast: AMB Financial (OTCMKTS:AMFC) & Magyar Bancorp (NASDAQ:MGYR)

AMB Financial (OTCMKTS:AMFC – Get Rating) and Magyar Bancorp (NASDAQ:MGYR – Get Rating) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Earnings & Valuation

This table compares AMB Financial and Magyar Bancorp’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AMB Financial	N/A	N/A	N/A	N/A	N/A
Magyar Bancorp	$32.22 million	2.09	$7.92 million	$1.23	8.20

Magyar Bancorp has higher revenue and earnings than AMB Financial.

Dividends

AMB Financial pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Magyar Bancorp pays an annual dividend of $0.12 per share and has a dividend yield of 1.2%. Magyar Bancorp pays out 9.8% of its earnings in the form of a dividend.

Profitability

This table compares AMB Financial and Magyar Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AMB Financial	N/A	N/A	N/A
Magyar Bancorp	22.66%	8.14%	1.00%

Risk & Volatility

AMB Financial has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500. Comparatively, Magyar Bancorp has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for AMB Financial and Magyar Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AMB Financial	0	0	0	0	N/A
Magyar Bancorp	0	0	0	0	N/A

Institutional and Insider Ownership

1.2% of AMB Financial shares are owned by institutional investors. Comparatively, 25.1% of Magyar Bancorp shares are owned by institutional investors. 37.7% of AMB Financial shares are owned by insiders. Comparatively, 8.9% of Magyar Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Magyar Bancorp beats AMB Financial on 6 of the 9 factors compared between the two stocks.

About AMB Financial

(Get Rating)

AMB Financial Corp. is a holding company of American Community Bank of Indiana, which engages in the provision of financial services. The firm offers personal and business banking. It is also involved in the business of attracting deposits from the general public and using such deposits to originate residential and commercial mortgage loans as well as other types of consumer and commercial loans. The company was founded on March 29, 1910 and is headquartered in St. John, IN.

About Magyar Bancorp

(Get Rating)

Magyar Bancorp, Inc. is a bank holding company, which engages in the provision of financial services. It offers commercial and retail financial services, including the taking of time, savings and demand deposits, the making of commercial, consumer and home equity loans and the provision of other financial services. The company was founded in 2005 and is headquartered in New Brunswick, NJ.