Reliant Bancorp (NASDAQ: RBNC) and Central Valley Community Bancorp (NASDAQ:CVCY) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.
Institutional & Insider Ownership
21.2% of Reliant Bancorp shares are held by institutional investors. Comparatively, 43.7% of Central Valley Community Bancorp shares are held by institutional investors. 12.5% of Reliant Bancorp shares are held by company insiders. Comparatively, 21.6% of Central Valley Community Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Reliant Bancorp has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, Central Valley Community Bancorp has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500.
Reliant Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Central Valley Community Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. Reliant Bancorp pays out 27.0% of its earnings in the form of a dividend. Central Valley Community Bancorp pays out 20.1% 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. Central Valley Community Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of recent recommendations for Reliant Bancorp and Central Valley Community Bancorp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Central Valley Community Bancorp||0||1||1||0||2.50|
Reliant Bancorp currently has a consensus price target of $25.25, suggesting a potential upside of 5.25%. Central Valley Community Bancorp has a consensus price target of $24.50, suggesting a potential upside of 21.89%. Given Central Valley Community Bancorp’s higher possible upside, analysts clearly believe Central Valley Community Bancorp is more favorable than Reliant Bancorp.
Valuation & Earnings
This table compares Reliant Bancorp and Central Valley Community Bancorp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Reliant Bancorp||$46.17 million||5.94||$7.25 million||$0.89||26.96|
|Central Valley Community Bancorp||$68.21 million||4.00||$14.03 million||$1.39||14.46|
Central Valley Community Bancorp has higher revenue and earnings than Reliant Bancorp. Central Valley Community Bancorp is trading at a lower price-to-earnings ratio than Reliant Bancorp, indicating that it is currently the more affordable of the two stocks.
This table compares Reliant Bancorp and Central Valley Community Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Central Valley Community Bancorp||20.56%||9.97%||1.22%|
Central Valley Community Bancorp beats Reliant Bancorp on 11 of the 14 factors compared between the two stocks.
Reliant Bancorp Company Profile
Reliant Bancorp, Inc., formerly Commerce Union Bancshares, Inc., serves as the bank holding company for Reliant Bank. The Company has two segments: Retail Banking and Residential Mortgage Banking. Retail Banking provides deposit and lending services to consumer and business customers within its primary geographic markets. Its customers are serviced through branch locations, automated teller machines (ATMs), online banking and mobile banking. Residential Mortgage Banking originates first lien residential mortgage loans throughout the United States. These loans are typically underwritten to government agency standards and sold to third-party secondary market mortgage investors. Reliant Bank provides a range of traditional banking services throughout the Middle Tennessee Region and the Nashville-Davidson-Murfreesboro-Franklin Metropolitan Statistical Area. Reliant Bank provides commercial banking services for businesses and individuals.
Central Valley Community Bancorp Company Profile
Central Valley Community Bancorp is a bank holding company, which operates through its subsidiary, Central Valley Community Bank (the Bank). The Company’s principal business is to provide, through its banking subsidiary, financial services in its primary market area in California. It serves over seven contiguous counties in California’s central valley, including Fresno County, Madera County, Merced County, Sacramento County, San Joaquin County, Stanislaus County, and Tulare County, and surrounding areas through the Bank. The Bank conducts a commercial banking business, which includes accepting demand, savings and time deposits and making commercial, real estate and consumer loans. It operates 24 full-service banking offices in Clovis, Exeter, Fresno, Kerman, Lodi, Madera, Merced, Modesto, Oakhurst, Prather, Sacramento, Stockton, Tracy and Visalia. Its subsidiary also includes the Folsom Lake Bank.
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