Bank of Marin Bancorp (NASDAQ:BMRC) versus First Republic Bank (OTCMKTS:FRCB) Financial Comparison

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

Institutional and Insider Ownership

52.3% of Bank of Marin Bancorp shares are owned by institutional investors. Comparatively, 0.0% of First Republic Bank shares are owned by institutional investors. 5.1% of Bank of Marin Bancorp shares are owned by insiders. Comparatively, 0.7% of First Republic Bank shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bank of Marin Bancorp	6.22%	5.27%	0.62%
First Republic Bank	N/A	N/A	N/A

Volatility and Risk

Bank of Marin Bancorp has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, First Republic Bank has a beta of 2.45, indicating that its stock price is 145% more volatile than the S&P 500.

Dividends

Bank of Marin Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 3.8%. First Republic Bank pays an annual dividend of $1.08 per share and has a dividend yield of 135,000.0%. Bank of Marin Bancorp pays out 161.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Republic Bank pays out 20.3% of its earnings in the form of a dividend. First Republic Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and price targets for Bank of Marin Bancorp and First Republic Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of Marin Bancorp	0	2	3	1	2.83
First Republic Bank	0	0	0	0	0.00

Bank of Marin Bancorp presently has a consensus target price of $28.40, indicating a potential upside of 8.67%. Given Bank of Marin Bancorp’s stronger consensus rating and higher probable upside, equities analysts clearly believe Bank of Marin Bancorp is more favorable than First Republic Bank.

Valuation & Earnings

This table compares Bank of Marin Bancorp and First Republic Bank”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of Marin Bancorp	$93.05 million	4.53	-$8.41 million	$0.62	42.15
First Republic Bank	$6.75 billion	0.00	$1.67 billion	$5.32	0.00

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

Summary

Bank of Marin Bancorp beats First Republic Bank on 11 of the 17 factors compared between the two stocks.

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 small to medium-sized businesses, not-for-profit organizations, and commercial real estate investors in the United States. The company offers personal and business checking and savings accounts; and individual retirement, health savings, and demand deposit marketplace accounts, as well as time certificates of deposit, 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 and payroll services; commercial equipment leasing program; payment solutions; treasury management services; credit cards; and mobile deposit, remote deposit capture, automated clearing house, wire transfer, and image lockbox services. Further, it provides wealth management and trust services comprising customized investment portfolio management, financial planning, trust administration, estate settlement, and custody services, as well as 401(k) plan services; and automated teller machines, and telephone and digital banking services. The company was incorporated in 1989 and is headquartered in Novato, California.

About First Republic Bank

As of May 1, 2023, First Republic Bank went out of business. Previously, First Republic Bank provided private banking, private business banking, and private wealth management services to clients in metropolitan areas in the United States. The company was founded in 1985 and was headquartered in San Francisco, California. First Republic Bank now trades on OTCPK.