Critical Analysis: Wayne Savings Bancshares (OTCMKTS:WAYN) vs. Ottawa Bancorp (OTCMKTS:OTTW)

Dividends

Ottawa Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 3.1%. Wayne Savings Bancshares pays an annual dividend of $0.92 per share and has a dividend yield of 3.8%. Ottawa Bancorp pays out 244.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Wayne Savings Bancshares pays out 28.7% of its earnings in the form of a dividend. Wayne Savings Bancshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Ottawa Bancorp and Wayne Savings Bancshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ottawa Bancorp	$16.45 million	2.06	$1.67 million	$0.18	77.78
Wayne Savings Bancshares	$38.11 million	1.40	$7.83 million	$3.21	7.56

Wayne Savings Bancshares has higher revenue and earnings than Ottawa Bancorp. Wayne Savings Bancshares is trading at a lower price-to-earnings ratio than Ottawa Bancorp, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

12.1% of Wayne Savings Bancshares shares are owned by institutional investors. 7.8% of Ottawa Bancorp shares are owned by company insiders. Comparatively, 3.2% of Wayne Savings Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Ottawa Bancorp has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Wayne Savings Bancshares has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Profitability

This table compares Ottawa Bancorp and Wayne Savings Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ottawa Bancorp	2.75%	1.12%	0.13%
Wayne Savings Bancshares	17.74%	16.26%	1.03%

Summary

Wayne Savings Bancshares beats Ottawa Bancorp on 9 of the 13 factors compared between the two stocks.

About Ottawa Bancorp

Ottawa Bancorp, Inc. operates as the bank holding company for OSB Community Bank, a savings bank that provides various financial services to individual and corporate customers in Illinois. The company's deposit products include saving, checking, money market, and interest-bearing accounts, as well as certificate of deposit. Its loan portfolio comprises commercial, non-residential real estate, one-to-four family residential, multi-family residential, consumer direct, and purchased auto loans; business and construction loans; motor vehicle, home improvement, share, and personal unsecured loans, as well as home equity and small personal credit lines; mortgage loans; and student loans. The company also provides cash management solutions, such as remote deposit capture, automated clearing house/payroll direct deposit, and merchant services, as well as commercial leasing services. In addition, it offers notary, lamination, night depository, document faxing, money gift envelopes, safe deposit boxes, and coin counting, as well as debit and credit cards, and digital banking services. The company was formerly known as Ottawa Savings Bancorp, Inc. and changed its name to Ottawa Bancorp, Inc. in October 2016. Ottawa Bancorp, Inc. was founded in 1871 and is based in Ottawa, Illinois.

About Wayne Savings Bancshares

Wayne Savings Bancshares, Inc. operates as the holding company for Wayne Savings Community Bank that provides personal and business banking products and services to individuals, businesses, and other organizations. The company offers checking, savings, money market, and term certificate accounts, as well as certificates of deposit. It also provides residential mortgage, commercial, installment, residential and nonresidential real estate, commercial real estate, residential construction, multi-family real estate, land, commercial business, consumer, home, home equity, auto, recreational vehicle, personal, furniture and appliance, agriculture, and term loans, as well as lines of credit, government guaranteed programs, and standby letters of credit. In addition, the company offers retirement planning, investment advisory, insurance, and wealth management and trust services. Further, it provides overdraft protection, re-order check, remote deposit capture, merchant, sweep, online and mobile banking, and bill pay services, as well as debit, credit, and gift cards. The company was founded in 1899 and is based in Wooster, Ohio.