Contrasting GBank Financial (NASDAQ:GBFH) & Bay Commercial Bank (NASDAQ:BCML)

Bay Commercial Bank (NASDAQ:BCML) and GBank Financial (NASDAQ:GBFH) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Volatility and Risk

Bay Commercial Bank has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500. Comparatively, GBank Financial has a beta of 0.07, suggesting that its share price is 93% less volatile than the S&P 500.

Institutional & Insider Ownership

66.2% of Bay Commercial Bank shares are owned by institutional investors. 2.9% of Bay Commercial Bank shares are owned by insiders. Comparatively, 32.4% of GBank Financial shares are owned 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 and Valuation

This table compares Bay Commercial Bank and GBank Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bay Commercial Bank	$104.88 million	3.24	$23.93 million	$1.20	25.96
GBank Financial	$79.73 million	3.19	$20.93 million	$1.28	13.69

Bay Commercial Bank has higher revenue and earnings than GBank Financial. GBank Financial is trading at a lower price-to-earnings ratio than Bay Commercial Bank, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bay Commercial Bank and GBank Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bay Commercial Bank	9.20%	6.98%	0.90%
GBank Financial	15.44%	14.42%	1.75%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Bay Commercial Bank and GBank Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bay Commercial Bank	0	4	0	1	2.40
GBank Financial	0	2	4	0	2.67

Bay Commercial Bank presently has a consensus price target of $34.00, suggesting a potential upside of 9.15%. GBank Financial has a consensus price target of $37.33, suggesting a potential upside of 113.09%. Given GBank Financial’s stronger consensus rating and higher possible upside, analysts plainly believe GBank Financial is more favorable than Bay Commercial Bank.

Summary

GBank Financial beats Bay Commercial Bank on 8 of the 15 factors compared between the two stocks.

About Bay Commercial Bank

BayCom Corp operates as the bank holding company for United Business Bank that provides various financial services to small and mid-sized businesses, service professionals, and individuals. The company provides demand, savings, money market, and time deposit accounts. It offers commercial and multifamily real estate loans, including owner-occupied and investor real estate loans; commercial and industrial loans, such as equipment loans and working capital lines of credit; small business administration loans; construction and land loans; agriculture-related loans; and consumer loans comprising installment loans, unsecured and secured personal lines of credit, and overdraft protection. In addition, the company provides online and mobile banking, automated teller machine, remote deposit capture, night depository, courier, direct deposit, treasury management, wire transfer, automated clearing house, debit cards, cashier's and travelers checks, letters of credit, lockbox, positive pay, reverse positive pay, and account reconciliation services, as well as zero balance accounts and sweep accounts, including loan sweep. It operates through a network of full-service banking branches in Northern and Southern California; Las Vegas, Nevada; Denver, Colorado; Custer, Delta, and Grand counties, Colorado; and Seattle, Washington and Central New Mexico. The company was formerly known as Bay Commercial Bank and changed its name to BayCom Corp in January 2017. BayCom Corp was incorporated in 2004 and is headquartered in Walnut Creek, California.

About GBank Financial

GBank Financial Holdings Inc. operates as a bank holding company for GBank which provides banking services to commercial and consumer customers principally in Nevada. The company offers business and personal checking and savings accounts. GBank Financial Holdings Inc. is based in Las Vegas, Nevada.