Contrasting TriCo Bancshares (NASDAQ:TCBK) and Northrim BanCorp (NASDAQ:NRIM)

Northrim BanCorp (NASDAQ:NRIM) and TriCo Bancshares (NASDAQ:TCBK) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Risk and Volatility

Northrim BanCorp has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, TriCo Bancshares has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Dividends

Northrim BanCorp pays an annual dividend of $0.64 per share and has a dividend yield of 2.4%. TriCo Bancshares pays an annual dividend of $1.44 per share and has a dividend yield of 2.7%. Northrim BanCorp pays out 22.2% of its earnings in the form of a dividend. TriCo Bancshares pays out 36.5% 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. Northrim BanCorp has raised its dividend for 16 consecutive years and TriCo Bancshares has raised its dividend for 12 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Northrim BanCorp and TriCo Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northrim BanCorp	0	2	2	0	2.50
TriCo Bancshares	0	3	4	0	2.57

Northrim BanCorp presently has a consensus price target of $31.50, indicating a potential upside of 16.19%. TriCo Bancshares has a consensus price target of $54.60, indicating a potential upside of 1.64%. Given Northrim BanCorp’s higher possible upside, equities research analysts clearly believe Northrim BanCorp is more favorable than TriCo Bancshares.

Institutional & Insider Ownership

66.0% of Northrim BanCorp shares are owned by institutional investors. Comparatively, 59.1% of TriCo Bancshares shares are owned by institutional investors. 2.4% of Northrim BanCorp shares are owned by company insiders. Comparatively, 4.9% of TriCo Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Northrim BanCorp and TriCo Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northrim BanCorp	24.91%	16.99%	1.63%
TriCo Bancshares	23.71%	9.87%	1.30%

Valuation & Earnings

This table compares Northrim BanCorp and TriCo Bancshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northrim BanCorp	$255.58 million	2.36	$64.61 million	$2.88	9.41
TriCo Bancshares	$538.91 million	3.18	$121.56 million	$3.95	13.60

TriCo Bancshares has higher revenue and earnings than Northrim BanCorp. Northrim BanCorp is trading at a lower price-to-earnings ratio than TriCo Bancshares, indicating that it is currently the more affordable of the two stocks.

Summary

TriCo Bancshares beats Northrim BanCorp on 9 of the 17 factors compared between the two stocks.

About Northrim BanCorp

Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals. It operates through two segments, Community Banking and Home Mortgage Lending. The company offers noninterest-bearing checking accounts and interest-bearing time deposits, checking and savings accounts, individual retirement and money market deposit accounts, certificates of deposit, and business sweep accounts. It also provides short and medium-term commercial loans, commercial credit lines, construction and real estate loans, and consumer loans, as well as short-term working capital. In addition, the company offers other services comprising consumer and business online banking, mobile app, and mobile deposits; and debit and credit cards. Further, it provides mobile web and app banking, consumer online account opening, personal finance, online documents, consumer debit cards, business debit cards, my rewards for consumer debit cards, retail lockbox, card control, corporate purchase cards, integrated payables, home equity advantage access cards, telebanking, and automated teller services. Additionally, the company offers personalized checks at account opening, overdraft protection from a savings account, commercial drive-up banking, automatic transfer and payment, People Pay, external transfer, Bill Pay, wire transfer, direct payroll deposit, electronic tax payment, Automated Clearing House origination and receipt, remote deposit capture, account reconciliation and positive pay, merchant, cash management, annuity, and long-term investment portfolio products and services. It also provides investment advisory, trust, wealth management, factoring, and mortgage services. The company was founded in 1990 and is headquartered in Anchorage, Alaska.

About TriCo Bancshares

TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to individual and corporate customers. The company accepts demand, savings, and time deposits. It also provides small business loans; real estate mortgage loans, such as residential and commercial loans; consumer loans; mortgage, auto, other vehicle, and personal loans; commercial loans, including agricultural loans; and real estate construction loans. In addition, the company offers treasury management services; credit and debit cards; and other customary banking services, including safe deposit boxes; and independent financial and broker-dealer services. Further, it provides checking, saving, and money market accounts, as well as individual retirement accounts; equipment financing; certificate of deposit account registry service; certificated of deposit; and IntraFi cash service. TriCo Bancshares was founded in 1975 and is headquartered in Chico, California.