Comparing Colony Bankcorp (NYSE:CBAN) and Northrim BanCorp (NASDAQ:NRIM)

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Northrim BanCorp and Colony Bankcorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northrim BanCorp	0	2	2	0	2.50
Colony Bankcorp	0	1	3	0	2.75

Northrim BanCorp currently has a consensus price target of $29.50, indicating a potential upside of 23.28%. Colony Bankcorp has a consensus price target of $23.00, indicating a potential upside of 11.74%. Given Northrim BanCorp’s higher possible upside, research analysts plainly believe Northrim BanCorp is more favorable than Colony Bankcorp.

Dividends

Northrim BanCorp pays an annual dividend of $0.68 per share and has a dividend yield of 2.8%. Colony Bankcorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.3%. Northrim BanCorp pays out 27.5% of its earnings in the form of a dividend. Colony Bankcorp pays out 26.4% 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 increased its dividend for 16 consecutive years and Colony Bankcorp has increased its dividend for 7 consecutive years. Northrim BanCorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

66.0% of Northrim BanCorp shares are owned by institutional investors. Comparatively, 50.4% of Colony Bankcorp shares are owned by institutional investors. 2.4% of Northrim BanCorp shares are owned by insiders. Comparatively, 3.9% of Colony Bankcorp 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.

Risk and Volatility

Northrim BanCorp has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Colony Bankcorp has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Profitability

This table compares Northrim BanCorp and Colony Bankcorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northrim BanCorp	22.02%	16.01%	1.60%
Colony Bankcorp	16.71%	10.73%	1.11%

Valuation & Earnings

This table compares Northrim BanCorp and Colony Bankcorp”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	2.08	$64.61 million	$2.47	9.69
Colony Bankcorp	$190.23 million	2.30	$28.25 million	$1.82	11.31

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

Summary

Northrim BanCorp beats Colony Bankcorp on 11 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 Colony Bankcorp

Colony Bankcorp, Inc. operates as the bank holding company for Colony Bank that provides various banking products and services to commercial and consumer customers. The company offers various deposit products, including demand, savings, and time deposits. It also provides loans to small and medium-sized businesses; residential and commercial construction, and land development loans; commercial real estate loans; commercial loans; agri-business and production loans; residential mortgage loans; home equity loans; and consumer loans. In addition, the company offers internet banking services, electronic bill payment services, safe deposit box rentals, telephone banking, credit and debit card services, and remote depository products, as well as access to a network of ATMs. As of January 20, 2022, it operated 39 locations throughout Georgia. The company was founded in 1975 and is headquartered in Fitzgerald, Georgia.