Contrasting NB Bancorp (NASDAQ:NBBK) & Byline Bancorp (NYSE:BY)

Byline Bancorp (NYSE:BY) and NB Bancorp (NASDAQ:NBBK) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Dividends

Byline Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 1.5%. NB Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.3%. Byline Bancorp pays out 16.9% of its earnings in the form of a dividend. NB Bancorp pays out 16.9% 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. Byline Bancorp has raised its dividend for 1 consecutive years. Byline Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Byline Bancorp and NB Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Byline Bancorp	$633.15 million	2.66	$130.05 million	$3.31	11.27
NB Bancorp	$351.74 million	2.72	$50.30 million	$1.66	13.17

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

Profitability

This table compares Byline Bancorp and NB Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Byline Bancorp	23.36%	11.84%	1.53%
NB Bancorp	14.86%	9.75%	1.14%

Insider & Institutional Ownership

67.7% of Byline Bancorp shares are owned by institutional investors. 29.1% of Byline Bancorp shares are owned by insiders. Comparatively, 5.1% of NB Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Byline Bancorp and NB Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Byline Bancorp	0	3	3	0	2.50
NB Bancorp	0	2	2	0	2.50

Byline Bancorp presently has a consensus target price of $43.00, indicating a potential upside of 15.27%. NB Bancorp has a consensus target price of $25.50, indicating a potential upside of 16.65%. Given NB Bancorp’s higher possible upside, analysts clearly believe NB Bancorp is more favorable than Byline Bancorp.

Summary

Byline Bancorp beats NB Bancorp on 11 of the 15 factors compared between the two stocks.

About Byline Bancorp

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits. The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services. In addition, it offers financing solutions for equipment vendors and their end users; syndication services; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.

About NB Bancorp

NB Bancorp, Inc. focuses on operating as a bank holding company for Needham Bank that provides various banking products and services in Greater Boston metropolitan area and surrounding communities in Massachusetts, eastern Connecticut, southern New Hampshire, and Rhode Island. The company offers various deposits, including certificate of deposit, individual retirement, money market, savings, NOW, demand deposit, and interest-bearing and noninterest-bearing checking accounts; and commercial real estate and multifamily, one- to four-family residential real estate, construction and land development, commercial and industrial, and consumer loans, as well as home equity loans and lines of credit. It also invests in securities consisting of U.S. treasury and federal agency securities, government-sponsored residential mortgage-backed securities, municipal bonds, and corporate bonds. The company was founded in 1892 and is based in Needham, Massachusetts.