Bridge Capital Holdings (NASDAQ: BBNK) and United Community Banks (NASDAQ:UCBI) are both commercial banks companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.

Profitability

This table compares Bridge Capital Holdings and United Community Banks’ 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%
United Community Banks 23.09% 10.31% 1.08%

Valuation and Earnings

This table compares Bridge Capital Holdings and United Community Banks’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Bridge Capital Holdings N/A N/A N/A $1.14 26.14
United Community Banks $428.72 million 4.72 $100.65 million $1.48 18.61

United Community Banks has higher revenue and earnings than Bridge Capital Holdings. United Community Banks is trading at a lower price-to-earnings ratio than Bridge Capital Holdings, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Bridge Capital Holdings has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, United Community Banks has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Bridge Capital Holdings and United Community Banks, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bridge Capital Holdings 0 0 0 0 N/A
United Community Banks 0 2 4 1 2.86

United Community Banks has a consensus price target of $31.14, suggesting a potential upside of 13.08%. Given United Community Banks’ higher probable upside, analysts plainly believe United Community Banks is more favorable than Bridge Capital Holdings.

Institutional & Insider Ownership

84.1% of United Community Banks shares are owned by institutional investors. 2.2% of United Community Banks shares are owned by 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

United Community Banks pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. Bridge Capital Holdings does not pay a dividend. United Community Banks pays out 27.0% of its earnings in the form of a dividend.

Summary

United Community Banks beats Bridge Capital Holdings on 12 of the 13 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.

United Community Banks Company Profile

United Community Banks, Inc. (United) is a bank holding company. United conducts its operations through a community-focused operating model of separate community banks, which, as of December 31, 2016, operated at 139 locations throughout the Atlanta-Sandy Springs-Roswell, Georgia, and Gainesville, Georgia metropolitan statistical areas, upstate and coastal South Carolina, north and coastal Georgia, western North Carolina, and east Tennessee. The community banks offer a range of retail and corporate banking services, including checking, savings and time deposit accounts, secured and unsecured loans, wire transfers, brokerage services and other financial services. The Company operates through its subsidiary, United Community Bank, Blairsville, Georgia (the Bank). The Bank owns an insurance agency, United Community Insurance Services, Inc., known as United Community Advisory Services, which is a subsidiary of the Bank.

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