Head-To-Head Comparison: Bank of Communications (OTCMKTS:BCMXY) and RBB Bancorp (NASDAQ:RBB)

RBB Bancorp (NASDAQ:RBB) and Bank of Communications (OTCMKTS:BCMXY) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares RBB Bancorp and Bank of Communications’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RBB Bancorp	17.26%	7.94%	0.99%
Bank of Communications	19.23%	7.91%	0.64%

Valuation & Earnings

This table compares RBB Bancorp and Bank of Communications”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RBB Bancorp	$238.00 million	1.90	$31.95 million	$2.43	11.00
Bank of Communications	$71.22 billion	1.00	$13.30 billion	$3.61	6.66

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

Institutional and Insider Ownership

40.1% of RBB Bancorp shares are held by institutional investors. 6.8% of RBB Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for RBB Bancorp and Bank of Communications, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RBB Bancorp	0	3	3	0	2.50
Bank of Communications	0	1	0	0	2.00

RBB Bancorp presently has a consensus target price of $25.50, suggesting a potential downside of 4.64%. Given RBB Bancorp’s stronger consensus rating and higher possible upside, research analysts clearly believe RBB Bancorp is more favorable than Bank of Communications.

Risk & Volatility

RBB Bancorp has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Bank of Communications has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500.

Dividends

RBB Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 2.4%. Bank of Communications pays an annual dividend of $0.97 per share and has a dividend yield of 4.0%. RBB Bancorp pays out 26.3% of its earnings in the form of a dividend. Bank of Communications pays out 26.9% 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.

Summary

RBB Bancorp beats Bank of Communications on 11 of the 16 factors compared between the two stocks.

About RBB Bancorp

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American, Korean-American, and other Asian-American communities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company also offers commercial and industrial lines of credit, term loans, mortgage warehouse lines, and international trade discounts; commercial real estate loans; residential, commercial, and land acquisition and development construction loans; small business administration loans; and single-family residential mortgage loans. In addition, it provides international letters of credit, SWIFT, export advisory, trade finance discount, and foreign exchange services; and remote deposit, e-banking, and mobile banking services. The company serves individuals, businesses, municipalities, and other entities. It operates branches in the Western region with branches in Los Angeles County, California; Orange County, California; Ventura County, California; Clark County, Nevada; Honolulu, Hawaii, as well as in Eastern region with branches in Manhattan, Brooklyn and Queens, New York; Chicago, Illinois; and Edison, New Jersey. RBB Bancorp was founded in 2008 and is headquartered in Los Angeles, California.

About Bank of Communications

Bank of Communications Co., Ltd. provides commercial banking products and services in China. The company offers savings deposit products, including demand deposits, lump-sum deposits and withdrawal, time deposit of small savings for lump-sum withdrawal, interest withdrawal on principal deposited, time-demand deposit, call deposit, swap management, and education deposit; personal certificate of deposit; salary financing A; and foreign currency deposit. It also provides credit, quasi-credit, and debit cards; new housing and second-hand mortgage loans and unsecured personal loans; personal wealth management advisor services; and precious metal and commodity trading services. In addition, the company offers corporate structured deposit and corporate certificate of deposit; corporate cash management; industrial chain finance program comprising prepayment financing, inventory financing, accounts receivable financing and accounts payable financing; syndicated loans; corporation overdraft; investment banking services; and offshore banking services, such as repayment financing, inventory financing, accounts receivable financing and accounts payable financing, and forex currencies. Further, it provides bond account activation, bond distribution, and transaction services; related bond escrow and settlement, pledge registration, and principal and interest payment services; training and consulting services for cooperative banks; cross-border inter-bank payments system services; consignment sales of precious metal products; bond underwriting distribution; third party bond depository services; bank derivatives transfer; b-share transfer; bankfutures transfer; standard warehouse warrant pledged financing; institutional investment consulting, wealth management, and insurance services; and clearing and settlement services for future markets. The company was founded in 1908 and is headquartered in Shanghai, the People’s Republic of China.