CU Bancorp (CA) (NASDAQ: CUNB) and The Bancorp (NASDAQ:TBBK) 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, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Profitability

This table compares CU Bancorp (CA) and The Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CU Bancorp (CA) 25.42% 9.73% 1.05%
The Bancorp -16.27% -4.27% -0.31%

Volatility and Risk

CU Bancorp (CA) has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, The Bancorp has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for CU Bancorp (CA) and The Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CU Bancorp (CA) 0 1 5 0 2.83
The Bancorp 0 1 2 0 2.67

CU Bancorp (CA) presently has a consensus target price of $41.33, suggesting a potential upside of 19.29%. The Bancorp has a consensus target price of $7.25, suggesting a potential downside of 6.45%. Given CU Bancorp (CA)’s stronger consensus rating and higher probable upside, research analysts clearly believe CU Bancorp (CA) is more favorable than The Bancorp.

Earnings and Valuation

This table compares CU Bancorp (CA) and The Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CU Bancorp (CA) $113.01 million 5.37 $29.44 million $1.68 20.63
The Bancorp $153.61 million 2.81 -$32.34 million ($0.58) -13.36

CU Bancorp (CA) has higher revenue, but lower earnings than The Bancorp. The Bancorp is trading at a lower price-to-earnings ratio than CU Bancorp (CA), indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

56.4% of CU Bancorp (CA) shares are held by institutional investors. Comparatively, 74.9% of The Bancorp shares are held by institutional investors. 9.1% of CU Bancorp (CA) shares are held by company insiders. Comparatively, 12.4% of The Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

CU Bancorp (CA) beats The Bancorp on 9 of the 13 factors compared between the two stocks.

About CU Bancorp (CA)

CU Bancorp is the bank holding company of California United Bank (the Bank). The Bank is a full-service commercial bank offering a range of banking products and services designed for small and medium-sized businesses, non-profit organizations, business owners and entrepreneurs, and the professional community. The Bank provides a range of deposit products, such as savings accounts, certificates of deposit and money market accounts, and loan products. The Bank also provides cash management services, online banking, commercial credit cards and other primarily business-oriented products. Its other services include commercial and stand-by letters of credit, domestic and international wire transfers, on site Automated Teller Machines (ATMs), and Visa Debit Cards and ATM cards. It also provides bank-by-mail services, courier services, armored transport, lock box, cash vault, cash management services, telephone banking, night depositories, commercial credit cards and international services.

About The Bancorp

The Bancorp, Inc. is a financial holding company and its primary subsidiary is The Bancorp Bank (the Bank). The Company has four primary lines of specialty lending: securities backed lines of credit (SBLOC), automobile fleet and other equipment leasing, Small Business Administration (SBA), loans and loans generated for sale into capital markets primarily through both commercial mortgage backed securities (CMBS) and collateralized loan obligations (CLOs). SBLOCs are loans, which are generated through institutional banking affinity groups and are collateralized by marketable securities. SBLOCs are offered in conjunction with brokerage accounts. Automobile fleet and other equipment leases are generated in a range of Atlantic Coast and other states. SBA loans and loans generated for sale into CMBS and securitization capital markets are made nationally. Its prepaid card, private label banking for investment advisory companies and card payment processing are its primary sources of deposits.

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