Bay Commercial Bank (NASDAQ:BCML) and BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP) Critical Contrast

Bay Commercial Bank (NASDAQ:BCML) and BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares Bay Commercial Bank and BCB Bancorp, Inc. (NJ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bay Commercial Bank	9.20%	6.98%	0.90%
BCB Bancorp, Inc. (NJ)	-10.21%	-6.29%	-0.54%

Risk & Volatility

Bay Commercial Bank has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500. Comparatively, BCB Bancorp, Inc. (NJ) has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.

Insider and Institutional Ownership

66.2% of Bay Commercial Bank shares are owned by institutional investors. Comparatively, 36.0% of BCB Bancorp, Inc. (NJ) shares are owned by institutional investors. 2.9% of Bay Commercial Bank shares are owned by insiders. Comparatively, 11.5% of BCB Bancorp, Inc. (NJ) shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Bay Commercial Bank pays an annual dividend of $1.20 per share and has a dividend yield of 4.0%. BCB Bancorp, Inc. (NJ) pays an annual dividend of $0.32 per share and has a dividend yield of 3.7%. Bay Commercial Bank pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BCB Bancorp, Inc. (NJ) pays out -29.1% of its earnings in the form of a dividend. Bay Commercial Bank has increased its dividend for 3 consecutive years. Bay Commercial Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent recommendations for Bay Commercial Bank and BCB Bancorp, Inc. (NJ), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bay Commercial Bank	1	2	1	0	2.00
BCB Bancorp, Inc. (NJ)	1	3	0	0	1.75

Bay Commercial Bank currently has a consensus target price of $34.00, suggesting a potential upside of 12.96%. BCB Bancorp, Inc. (NJ) has a consensus target price of $10.00, suggesting a potential upside of 16.55%. Given BCB Bancorp, Inc. (NJ)’s higher probable upside, analysts plainly believe BCB Bancorp, Inc. (NJ) is more favorable than Bay Commercial Bank.

Valuation & Earnings

This table compares Bay Commercial Bank and BCB Bancorp, Inc. (NJ)”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bay Commercial Bank	$141.48 million	2.32	$23.93 million	$1.20	25.08
BCB Bancorp, Inc. (NJ)	$181.51 million	0.86	-$12.53 million	($1.10)	-7.80

Bay Commercial Bank has higher earnings, but lower revenue than BCB Bancorp, Inc. (NJ). BCB Bancorp, Inc. (NJ) is trading at a lower price-to-earnings ratio than Bay Commercial Bank, indicating that it is currently the more affordable of the two stocks.

Summary

Bay Commercial Bank beats BCB Bancorp, Inc. (NJ) on 12 of the 17 factors compared between the two stocks.

About Bay Commercial Bank

BayCom Corp operates as the bank holding company for United Business Bank that provides various financial services to small and mid-sized businesses, service professionals, and individuals. The company provides demand, savings, money market, and time deposit accounts. It offers commercial and multifamily real estate loans, including owner-occupied and investor real estate loans; commercial and industrial loans, such as equipment loans and working capital lines of credit; small business administration loans; construction and land loans; agriculture-related loans; and consumer loans comprising installment loans, unsecured and secured personal lines of credit, and overdraft protection. In addition, the company provides online and mobile banking, automated teller machine, remote deposit capture, night depository, courier, direct deposit, treasury management, wire transfer, automated clearing house, debit cards, cashier's and travelers checks, letters of credit, lockbox, positive pay, reverse positive pay, and account reconciliation services, as well as zero balance accounts and sweep accounts, including loan sweep. It operates through a network of full-service banking branches in Northern and Southern California; Las Vegas, Nevada; Denver, Colorado; Custer, Delta, and Grand counties, Colorado; and Seattle, Washington and Central New Mexico. The company was formerly known as Bay Commercial Bank and changed its name to BayCom Corp in January 2017. BayCom Corp was incorporated in 2004 and is headquartered in Walnut Creek, California.

About BCB Bancorp, Inc. (NJ)

BCB Bancorp, Inc. operates as a bank holding company for BCB Community Bank that engages in the provision of banking products and services to businesses and individuals in the United States. The company offers insured deposit products, including savings and club accounts, interest and non-interest-bearing demand accounts, money market accounts, certificates of deposit, and individual retirement accounts. It also provides various loan products, such as commercial and multi-family real estate loans, one-to-four family mortgage loans, commercial business loans, construction loans, home equity loans, and consumer loans. In addition, the company offers retail and commercial banking services comprising wire transfer, money order, safe deposit box, night depository, debit card, online and mobile banking, fraud detection, and automated teller services. The company was founded in 2000 and is based in Bayonne, New Jersey.