Bay Banks of Virginia (OTCMKTS:BAYK) & Franklin Financial Services (NASDAQ:FRAF) Financial Review

Franklin Financial Services (NASDAQ:FRAF) and Bay Banks of Virginia (OTCMKTS:BAYK) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Franklin Financial Services and Bay Banks of Virginia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Franklin Financial Services	12.85%	10.60%	0.71%
Bay Banks of Virginia	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and target prices for Franklin Financial Services and Bay Banks of Virginia, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Franklin Financial Services	0	0	0	0	N/A
Bay Banks of Virginia	0	0	0	0	N/A

Valuation & Earnings

This table compares Franklin Financial Services and Bay Banks of Virginia’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Franklin Financial Services	$91.61 million	1.53	$13.60 million	$3.12	10.18
Bay Banks of Virginia	$55.38 million	2.27	$7.06 million	N/A	N/A

Franklin Financial Services has higher revenue and earnings than Bay Banks of Virginia.

Insider & Institutional Ownership

24.8% of Franklin Financial Services shares are owned by institutional investors. 6.9% of Franklin Financial Services shares are owned by company insiders. Comparatively, 7.6% of Bay Banks of Virginia shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Franklin Financial Services beats Bay Banks of Virginia on 6 of the 8 factors compared between the two stocks.

About Franklin Financial Services

Franklin Financial Services Corporation operates as the bank holding company for Farmers and Merchants Trust Company of Chambersburg that provides commercial, retail banking, and trust services to businesses, individuals, governmental entities, and non-profit organizations in Pennsylvania. It offers various deposit products, including checking, savings, money management, and time deposit accounts, as well as demand deposits. The company also provides commercial real estate, construction and land development, commercial and industrial, and residential mortgage loans, as well as installment and revolving loans; consumer loans comprising unsecured personal lines of credit and installment loans; and secured and unsecured commercial and industrial loans, including accounts receivable and inventory financing, and commercial equipment financing. In addition, it offers various investment and trust services comprising estate planning and administration, corporate and personal trust fund management, pension, and profit sharing and other employee benefit funds management services, and custodial services, as well as non-trust related investment services; sells mutual funds, annuities, and insurance products; and offers safe deposit, pension, and fiduciary services. Further, the company engages in non-bank investment activities, such as venture capital investments. The company was founded in 1906 and is headquartered in Chambersburg, Pennsylvania.

About Bay Banks of Virginia

Bay Banks of Virginia, Inc., through its subsidiaries, provides various banking products and services to businesses, professionals, and consumers in Virginia. The company accepts checking accounts, savings accounts, money market accounts, cash management accounts, certificates of deposit, and individual retirement accounts. Its loan products include commercial and industrial loans, such as small business loans, asset based loans, and other secured and unsecured loans and lines of credit; purchased loans; residential and commercial mortgages; home equity loans; consumer installment loans; and consumer loans comprising automobile and boat financing, home improvement loans, and unsecured personal loans. The company also provides credit cards; and insurance, online banking, telephone banking, mobile banking, analysis checking, cash management deposit, wire, direct deposit payroll, lockbox, positive pay, and remote deposit services, as well as a line of commercial lending options. In addition, it offers management services, including estate planning and settlement, as well as trust administration, investment, and wealth management services; and revocable and irrevocable living trusts, testamentary trusts, custodial accounts, investment planning, brokerage services, investment managed accounts, and managed and self-directed rollover individual retirement accounts for personal and corporate trusts. As of March 9, 2020, the company operated 17 banking offices located throughout greater Richmond region, the Northern Neck region, Middlesex County, and the Hampton Roads region. Bay Banks of Virginia, Inc. was founded in 1930 and is headquartered in Richmond, Virginia.