BCB Bancorp (NASDAQ: BCBP) and Financial Institutions (NASDAQ:FISI) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.
Institutional and Insider Ownership
30.6% of BCB Bancorp shares are owned by institutional investors. Comparatively, 72.4% of Financial Institutions shares are owned by institutional investors. 16.8% of BCB Bancorp shares are owned by company insiders. Comparatively, 5.5% of Financial Institutions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares BCB Bancorp and Financial Institutions’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BCB Bancorp||$85.05 million||2.71||$9.98 million||$0.84||18.21|
|Financial Institutions||$164.84 million||2.91||$33.53 million||$2.12||14.48|
Financial Institutions has higher revenue and earnings than BCB Bancorp. Financial Institutions is trading at a lower price-to-earnings ratio than BCB Bancorp, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
BCB Bancorp has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, Financial Institutions has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.
This table compares BCB Bancorp and Financial Institutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations and price targets for BCB Bancorp and Financial Institutions, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
BCB Bancorp currently has a consensus target price of $14.50, indicating a potential downside of 5.23%. Financial Institutions has a consensus target price of $33.50, indicating a potential upside of 9.12%. Given Financial Institutions’ higher possible upside, analysts plainly believe Financial Institutions is more favorable than BCB Bancorp.
BCB Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.7%. Financial Institutions pays an annual dividend of $0.88 per share and has a dividend yield of 2.9%. BCB Bancorp pays out 66.7% of its earnings in the form of a dividend. Financial Institutions pays out 41.5% 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.
Financial Institutions beats BCB Bancorp on 11 of the 15 factors compared between the two stocks.
About BCB Bancorp
BCB Bancorp, Inc. is the holding company parent of BCB Community Bank (the Bank). The Bank is a community-oriented financial institution. Its business is to offer Federal Deposit Insurance Corporation (FDIC)-insured deposit products and to invest funds held in deposit accounts at the Bank, together with funds generated from operations, in loans and investment securities. It offers loans, including commercial and multi-family real estate loans, one- to four-family mortgage loans, home equity loans, construction loans, consumer loans and commercial business loans; FDIC-insured deposit products, such as savings and club accounts, interest and non-interest bearing demand accounts, money market accounts, certificates of deposit and individual retirement accounts, and retail and commercial banking services, including wire transfers, money orders, safe deposit boxes, a night depository, debit cards, online banking, gift cards, fraud detection and automated teller services.
About Financial Institutions
Financial Institutions, Inc. is a financial holding company. The Company conducts its business through its subsidiaries: Five Star Bank (the Bank), a New York chartered bank; Scott Danahy Naylon, LLC (SDN), a full service insurance agency, and Courier Capital, LLC (Courier Capital), an investment advisory and wealth management company. The Company operates through two segments: Banking and Non-Banking. The Banking segment includes all of the Company’s retail and commercial banking operations. The Non-Banking segment includes the activities of SDN and Courier Capital. The Company offers a range of banking and related financial services to consumer, commercial and municipal customers through its bank and nonbank subsidiaries. The Company’s indirect lending network includes relationships with franchised automobile dealers in Western and Central New York, the Capital District of New York and Northern and Central Pennsylvania.
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