Reviewing Chino Commercial Bancorp (OTCMKTS:CCBC) & Farmers & Merchants Bancorp (OTCMKTS:FMCB)

Institutional and Insider Ownership

5.6% of Farmers & Merchants Bancorp shares are held by institutional investors. 8.0% of Farmers & Merchants Bancorp shares are held by insiders. Comparatively, 32.5% of Chino Commercial Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Farmers & Merchants Bancorp and Chino Commercial Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Farmers & Merchants Bancorp	30.25%	15.35%	1.62%
Chino Commercial Bancorp	20.17%	N/A	N/A

Volatility and Risk

Farmers & Merchants Bancorp has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500. Comparatively, Chino Commercial Bancorp has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500.

Valuation and Earnings

This table compares Farmers & Merchants Bancorp and Chino Commercial Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmers & Merchants Bancorp	$268.67 million	2.74	$88.31 million	$118.46	8.86
Chino Commercial Bancorp	$21.37 million	1.98	$4.94 million	$1.54	8.57

Farmers & Merchants Bancorp has higher revenue and earnings than Chino Commercial Bancorp. Chino Commercial Bancorp is trading at a lower price-to-earnings ratio than Farmers & Merchants Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Farmers & Merchants Bancorp beats Chino Commercial Bancorp on 9 of the 11 factors compared between the two stocks.

About Farmers & Merchants Bancorp

Farmers & Merchants Bancorp operates as the bank holding company for Farmers & Merchants Bank of Central California that provides various banking services to businesses and individuals. The company accepts various deposit products, including checking, savings, money market, time certificates of deposit, and individual retirement accounts. It also offers range of lending products comprising commercial and residential real estate, real estate construction, agribusiness, and consumer loans, as well as equipment leases and credit card services; commercial products, including term loans, lines of credit and other working capital financing, and letters of credit; and financing products, such as automobile financing, home improvement, and home equity lines of credit. In addition, the company provides various specialized services consisting of credit card programs for merchants, lockbox and other collection services, account reconciliation, investment sweep, online account access, and electronic funds transfers through domestic and international wire and automated clearinghouse; online banking services; and investment products, such as mutual funds and annuities. The company was founded in 1916 and is headquartered in Lodi, California.

About Chino Commercial Bancorp

Chino Commercial Bancorp operates as the bank holding company for Chino Commercial Bank, N.A. that provides commercial banking services to individuals and small businesses primarily in the Inland Empire region of Southern California. The company's deposit products include non-interest bearing deposits, money market accounts, NOW and savings accounts, and certificates of deposit accounts. It also provides loan products, such as one-to-four family residential, residential, construction, commercial real estate, and commercial and industrial loans, as well as loans to individuals for overdraft protection and personal lines of credit. In addition, the company offers credit and debit card, wire transfer, and online and mobile banking services. It operates full-service branches in Chino, Ontario, Rancho Cucamonga, and Upland, California. The company was founded in 1999 and is headquartered in Chino, California.