Bridge Capital Holdings (NASDAQ: BBNK) and ServisFirst Bancshares (NASDAQ:SFBS) are both financials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitabiliy, risk, analyst recommendations, dividends, earnings and institutional ownership.

Profitability

This table compares Bridge Capital Holdings and ServisFirst Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bridge Capital Holdings 16.16% 8.27% 0.85%
ServisFirst Bancshares 35.15% 16.67% 1.43%

Valuation and Earnings

This table compares Bridge Capital Holdings and ServisFirst Bancshares’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bridge Capital Holdings N/A N/A N/A N/A N/A
ServisFirst Bancshares $205.40 million 9.66 $87.83 million $1.66 22.58

ServisFirst Bancshares has higher revenue and earnings than Bridge Capital Holdings.

Institutional and Insider Ownership

43.5% of ServisFirst Bancshares shares are held by institutional investors. 14.0% of ServisFirst Bancshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

ServisFirst Bancshares pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Bridge Capital Holdings does not pay a dividend. ServisFirst Bancshares pays out 12.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Bridge Capital Holdings and ServisFirst Bancshares, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bridge Capital Holdings 0 0 0 0 N/A
ServisFirst Bancshares 0 3 0 0 2.00

ServisFirst Bancshares has a consensus target price of $39.33, indicating a potential upside of 4.92%. Given ServisFirst Bancshares’ higher possible upside, analysts clearly believe ServisFirst Bancshares is more favorable than Bridge Capital Holdings.

Summary

ServisFirst Bancshares beats Bridge Capital Holdings on 8 of the 9 factors compared between the two stocks.

Bridge Capital Holdings Company Profile

Bridge Capital Holdings is the bank holding company for Bridge Bank, National Association (the Bank). The Bank’s lending solutions include working capital lines of credit, structured finance (asset-based lending and factoring), 7(a) and 504 Small Business Administration (SBA) loans, commercial real estate loans, sustainable energy project financing, growth capital loans, equipment financing, letters of credit and commercial credit cards. The Bank’s depository and corporate banking services include cash and treasury management solutions, interest-bearing term deposit accounts, checking accounts, Automated Clearing House (ACH) payment and wire solutions, fraud protection, remote deposit capture, courier services and online banking. The Bank’s international banking services include foreign exchange (FX payments and hedging), letters of credit, and import and export financing. The Bank provides banking services to businesses located across the San Francisco Bay Area.

ServisFirst Bancshares Company Profile

ServisFirst Bancshares, Inc. is a bank holding company whose business is conducted by its subsidiary, ServisFirst Bank (the Bank). The Company’s principal business is to accept deposits from the public and to make loans and other investments. The Company, through its bank, originates commercial, consumer and other loans; accept deposits; provides electronic banking services, such as online and mobile banking, including remote deposit capture, deliver treasury and cash management services, and provides correspondent banking services to other financial institutions. The Company’s principal sources of funds for loans and investments are demand, time, savings and other deposits and the amortization and prepayment of loans and borrowings. The Company offers a range of products and services, including round the clock telephone banking, direct deposit, Internet banking, mobile banking, traveler’s checks, safe deposit boxes, attorney trust accounts and automatic account transfers.

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