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

Volatility & Risk

Enterprise Bancorp has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Bank of Marin Bancorp has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Enterprise Bancorp and Bank of Marin Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enterprise Bancorp 0 0 0 0 N/A
Bank of Marin Bancorp 0 0 0 0 N/A

Earnings and Valuation

This table compares Enterprise Bancorp and Bank of Marin Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enterprise Bancorp $153.43 million 1.65 $34.20 million N/A N/A
Bank of Marin Bancorp $109.52 million 3.49 $34.24 million $2.48 11.35

Bank of Marin Bancorp has lower revenue, but higher earnings than Enterprise Bancorp.

Dividends

Enterprise Bancorp pays an annual dividend of $0.70 per share and has a dividend yield of 3.3%. Bank of Marin Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 3.3%. Bank of Marin Bancorp pays out 37.1% of its earnings in the form of a dividend. Enterprise Bancorp has increased its dividend for 7 consecutive years and Bank of Marin Bancorp has increased its dividend for 11 consecutive years.

Insider & Institutional Ownership

22.2% of Enterprise Bancorp shares are owned by institutional investors. Comparatively, 44.9% of Bank of Marin Bancorp shares are owned by institutional investors. 18.4% of Enterprise Bancorp shares are owned by company insiders. Comparatively, 5.3% of Bank of Marin Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Enterprise Bancorp 18.99% 10.20% 0.93%
Bank of Marin Bancorp 30.53% 10.22% 1.31%

Summary

Bank of Marin Bancorp beats Enterprise Bancorp on 9 of the 13 factors compared between the two stocks.

About Enterprise Bancorp

Enterprise Bancorp, Inc. operates as the holding company for Enterprise Bank and Trust Company that provides various banking products and services primarily in the greater Merrimack Valley and North Central regions of Massachusetts and Southern New Hampshire. The company offers commercial checking, business and municipal savings accounts, term certificates of deposit, money market and business sweep accounts, interest on lawyers trust accounts, escrow management accounts, personal checking accounts, savings accounts, and individual retirement accounts, as well as checking and simplified employee pension accounts. It also provides commercial mortgage loans, construction and land development loans, secured and unsecured commercial loans and lines of credit, and letters of credit; and conventional residential mortgage loans, home equity loans and lines, residential construction loans on primary and secondary residences, and secured and unsecured personal loans and lines of credit, as well as equipment lease financing services. In addition, the company offers cash management services; various investment advisory and management services, including customized investment management and trust services to individuals, family groups, commercial businesses, trusts, foundations, non-profit organizations, and endowments; and insurance products, such as property and casualty, employee benefits, and risk-management solutions. As of January 25, 2018, it had 24 full-service branches located in the Massachusetts communities of Lowell, Acton, Andover, Billerica, Chelmsford, Dracut, Fitchburg, Lawrence, Leominster, Methuen, Tewksbury, Tyngsborough, and Westford; and the New Hampshire communities of Derry, Hudson, Nashua, Pelham, Salem, and Windham. The company primarily serves business entities, non-profit organizations, professionals, and individuals. Enterprise Bancorp, Inc. was founded in 1989 and is headquartered in Lowell, Massachusetts.

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 professionals, small and middle-market businesses, individuals, and not-for-profit organizations in California, the United States. The company offers personal and business checking and savings accounts; and time certificates of deposit, individual retirement accounts, health savings accounts, and demand deposit marketplace accounts, as well as 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 card and cash management services; credit cards; mobile deposit, remote deposit capture, automated clearing house, and image lockbox services, as well as wire transfers; fraud detection tools; and valet pick-up service for non-cash deposits. Further, it provides wealth management and trust services comprising customized investment portfolio management, trust administration, estate settlement, and custody services, as well as 401(k) plan services; and automated teller machines, and telephone and Internet banking services. The company operates 23 offices in Marin, Sonoma, San Francisco, Napa, and Alameda counties. Bank of Marin Bancorp was founded in 1989 and is headquartered in Novato, California.

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