Financial Analysis: Pioneer Bancorp (NASDAQ:PBFS) versus MainStreet Bank (NASDAQ:MNSB)

Pioneer Bancorp (NASDAQ:PBFS) and MainStreet Bank (NASDAQ:MNSB) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Volatility and Risk

Pioneer Bancorp has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, MainStreet Bank has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500.

Profitability

This table compares Pioneer Bancorp and MainStreet Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pioneer Bancorp	16.17%	5.02%	0.74%
MainStreet Bank	12.94%	9.13%	0.80%

Analyst Ratings

This is a summary of recent recommendations for Pioneer Bancorp and MainStreet Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pioneer Bancorp	0	0	1	0	3.00
MainStreet Bank	0	1	1	0	2.50

Insider and Institutional Ownership

52.3% of MainStreet Bank shares are held by institutional investors. 2.8% of Pioneer Bancorp shares are held by insiders. Comparatively, 10.2% of MainStreet Bank shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Pioneer Bancorp and MainStreet Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pioneer Bancorp	$98.09 million	4.30	$6.45 million	$0.66	25.45
MainStreet Bank	$73.75 million	2.40	$15.61 million	$1.99	12.52

MainStreet Bank has lower revenue, but higher earnings than Pioneer Bancorp. MainStreet Bank is trading at a lower price-to-earnings ratio than Pioneer Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

MainStreet Bank beats Pioneer Bancorp on 7 of the 12 factors compared between the two stocks.

About Pioneer Bancorp

Pioneer Bancorp, Inc. operates as a holding company for Pioneer Savings Bank that provides various banking products and services in New York. The company accepts various deposit products, such as demand, savings, and money market accounts, as well as certificates of deposit accounts. Its loan products include commercial real estate, commercial and industrial, commercial construction, residential mortgage lending, consumer loans, and home equity lines of credit. The company also invests in the U.S. governmental securities, fixed rate collateralized mortgage obligations, mortgage-backed securities, fixed-rate investment grade bonds, and equity securities. In addition, the company offers personal and commercial insurance products, including homeowners, automobile, and comprehensive business insurance; employee benefit products and services, such as group health, dental, disability, and life insurance products, as well as defined contribution, defined benefit administration, and human resource management services; and wealth management services comprising investment advice, retirement income planning, estate planning, business succession, and employer retirement planning. The company was founded in 1889 and is based in Albany, New York. Pioneer Bancorp, Inc. operates as a subsidiary of Pioneer Bancorp, MHC.

About MainStreet Bank

MainStreet Bancshares, Inc. operates as the bank holding company for MainStreet Bank that provides various banking products and services for individuals, small to medium-sized businesses, and professional service organizations. The company offers demand, NOW, money market, savings, and sweep accounts, as well as certificates of deposit; business and consumer checking, interest-bearing checking, business account analysis, and other depository services; and cash management, wire transfer, check imaging, bill pay, remote deposit capture, and courier services. It also provides commercial loans, include government contract receivables, plant and equipment, general working capital, contract administration, and acquisition loans; commercial real estate, real estate construction, and residential real estate loans; and consumer loans comprising term loans and overdraft protection, as well as debit and credit cards. In addition, the company offers deposit insurance solutions; remote deposit of checks; and internet bill payment, online cash management, and online and mobile banking services. It operates in Herndon, Fairfax, McLean, Leesburg, Clarendon, and Washington D.C., as well as automated teller machines. The company was incorporated in 2003 and is headquartered in Fairfax, Virginia.