Reviewing TriCo Bancshares (NASDAQ:TCBK) & Bank of Marin Bancorp (NASDAQ:BMRC)

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

Insider & Institutional Ownership

52.3% of Bank of Marin Bancorp shares are held by institutional investors. Comparatively, 59.1% of TriCo Bancshares shares are held by institutional investors. 4.9% of Bank of Marin Bancorp shares are held by insiders. Comparatively, 4.9% of TriCo Bancshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Bank of Marin Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 3.5%. TriCo Bancshares pays an annual dividend of $1.44 per share and has a dividend yield of 2.4%. Bank of Marin Bancorp pays out -49.5% of its earnings in the form of a dividend. TriCo Bancshares pays out 36.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. TriCo Bancshares has increased its dividend for 12 consecutive years. Bank of Marin Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Bank of Marin Bancorp and TriCo Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of Marin Bancorp	-18.58%	7.20%	0.78%
TriCo Bancshares	23.71%	9.87%	1.30%

Valuation & Earnings

This table compares Bank of Marin Bancorp and TriCo Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of Marin Bancorp	$163.98 million	2.82	-$35.67 million	($2.02)	-14.15
TriCo Bancshares	$538.91 million	3.54	$121.56 million	$3.95	15.14

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

Volatility & Risk

Bank of Marin Bancorp has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, TriCo Bancshares has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Bank of Marin Bancorp and TriCo Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of Marin Bancorp	0	4	2	0	2.33
TriCo Bancshares	0	6	1	0	2.14

Bank of Marin Bancorp currently has a consensus target price of $28.40, suggesting a potential downside of 0.66%. TriCo Bancshares has a consensus target price of $56.40, suggesting a potential downside of 5.69%. Given Bank of Marin Bancorp’s stronger consensus rating and higher probable upside, equities analysts clearly believe Bank of Marin Bancorp is more favorable than TriCo Bancshares.

Summary

TriCo Bancshares beats Bank of Marin Bancorp on 10 of the 17 factors compared between the two stocks.

About Bank of Marin Bancorp

Bank of Marin Bancorp operates as the holding company for Bank of Marin that provides a range of financial services primarily to small to medium-sized businesses, not-for-profit organizations, and commercial real estate investors in the United States. The company offers personal and business checking and savings accounts; and individual retirement, health savings, and demand deposit marketplace accounts, as well as time certificates of deposit, certificate of deposit account registry, and insured cash sweep services. It also provides commercial real estate, commercial and industrial, and consumer loans, as well as construction financing and home equity lines of credit. In addition, the company offers merchant and payroll services; commercial equipment leasing program; payment solutions; treasury management services; credit cards; and mobile deposit, remote deposit capture, automated clearing house, wire transfer, and image lockbox services. Further, it provides wealth management and trust services comprising customized investment portfolio management, financial planning, trust administration, estate settlement, and custody services, as well as 401(k) plan services; and automated teller machines, and telephone and digital banking services. The company was incorporated in 1989 and is headquartered in Novato, California.

About TriCo Bancshares

TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to individual and corporate customers. The company accepts demand, savings, and time deposits. It also provides small business loans; real estate mortgage loans, such as residential and commercial loans; consumer loans; mortgage, auto, other vehicle, and personal loans; commercial loans, including agricultural loans; and real estate construction loans. In addition, the company offers treasury management services; credit and debit cards; and other customary banking services, including safe deposit boxes; and independent financial and broker-dealer services. Further, it provides checking, saving, and money market accounts, as well as individual retirement accounts; equipment financing; certificate of deposit account registry service; certificated of deposit; and IntraFi cash service. TriCo Bancshares was founded in 1975 and is headquartered in Chico, California.