Critical Review: Gouverneur Bancorp (OTCMKTS:GOVB) and FFW (OTCMKTS:FFWC)

FFW (OTCMKTS:FFWC) and Gouverneur Bancorp (OTCMKTS:GOVB) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Risk and Volatility

FFW has a beta of 0.05, meaning that its share price is 95% less volatile than the S&P 500. Comparatively, Gouverneur Bancorp has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for FFW and Gouverneur Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FFW	0	0	0	0	N/A
Gouverneur Bancorp	0	0	0	0	N/A

Earnings & Valuation

This table compares FFW and Gouverneur Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FFW	$25.63 million	1.53	$5.70 million	$4.08	8.49
Gouverneur Bancorp	$7.35 million	1.59	$1.53 million	N/A	N/A

FFW has higher revenue and earnings than Gouverneur Bancorp.

Insider and Institutional Ownership

21.6% of Gouverneur Bancorp shares are held by institutional investors. 17.0% of FFW shares are held by insiders. Comparatively, 4.1% of Gouverneur Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares FFW and Gouverneur Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FFW	16.75%	N/A	N/A
Gouverneur Bancorp	N/A	N/A	N/A

Summary

FFW beats Gouverneur Bancorp on 4 of the 7 factors compared between the two stocks.

About FFW

FFW Corporation operates as the bank holding company for Crossroads Bank that provides various banking products and services. The company offers checking and savings accounts, overdraft protection, consumer credit cards, and reorder checks. Its loan products include home equity, auto, RV, boat, motorcycle, and personal loans; mortgage loans; agricultural loans; commercial real estate equipment financing; revolving lines of credit and standby letters of credit; and equipment leasing, as well as commercial lending services. The company offers insurance products, such as auto, home and property, business, life and health, and specialty insurance; investment products and securities; and digital banking services. FFW Corporation was founded in 1920 and is based in Wabash, Indiana.

About Gouverneur Bancorp

Gouverneur Bancorp, Inc. operates as the holding company for Gouverneur Savings and Loan Association that provides various banking products and services to individuals and businesses in New York. It accepts passbook savings, NOW, money market deposit, and checking accounts, as well as certificates of deposit. The company's loan products include mortgage loans, one- to four-family residential loans, commercial real estate loans, and multi-family residential real estate loans, residential and commercial construction loans, commercial land loans, home equity loans, lines of credit, commercial loans, automobiles, motorcycles, campers, boats, and other recreational vehicles, as well as personal secured and unsecured loans. It also invests in municipal bonds, U.S. Treasury securities, U.S. Government agencies and government-sponsored obligations, and mortgage-backed securities. In addition, the company offers online, mobile, bill pay, and telephone banking; electronic or paper statements; and ATM, debit cards, direct deposits, mobile remote deposit capture, automatic payments and transfers, bank checks, wire transfers, and safe deposit box services. It serves primarily the St. Lawrence County, and Jefferson and Lewis counties in New York State. The company was founded in 1892 and is headquartered in Gouverneur, New York.