Analyzing Bank of Commerce (BOCH) & The Bancorp (TBBK)

Bank of Commerce (NASDAQ: BOCH) and The Bancorp (NASDAQ:TBBK) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Institutional & Insider Ownership

52.2% of Bank of Commerce shares are owned by institutional investors. Comparatively, 72.8% of The Bancorp shares are owned by institutional investors. 6.9% of Bank of Commerce shares are owned by company insiders. Comparatively, 12.4% of The Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Bank of Commerce pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. The Bancorp does not pay a dividend. Bank of Commerce pays out 17.9% of its earnings in the form of a dividend.

Profitability

This table compares Bank of Commerce and The Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank of Commerce 19.58% 8.66% 0.82%
The Bancorp 2.74% -1.67% -0.12%

Volatility and Risk

Bank of Commerce has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500. Comparatively, The Bancorp has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Valuation & Earnings

This table compares Bank of Commerce and The Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bank of Commerce $44.60 million 4.07 $5.25 million $0.67 16.67
The Bancorp $144.70 million 3.84 -$96.49 million $0.09 110.44

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Bank of Commerce and The Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank of Commerce 0 1 0 0 2.00
The Bancorp 0 1 2 0 2.67

Bank of Commerce currently has a consensus price target of $12.00, suggesting a potential upside of 7.43%. The Bancorp has a consensus price target of $8.50, suggesting a potential downside of 14.49%. Given Bank of Commerce’s higher probable upside, analysts clearly believe Bank of Commerce is more favorable than The Bancorp.

Bank of Commerce Company Profile

Bank of Commerce Holdings (Holding Company) is a bank holding company. The Company’s principal business is to serve as a holding company for Redding Bank of Commerce (Bank), which operates under two separate names (Redding Bank of Commerce and Sacramento Bank of Commerce). The Bank operates over four full service facilities in two diverse markets in Northern California. The Bank provides a range of financial services and products for business and retail customers. Its principal products include various types of accounts, such as checking, interest-bearing checking, savings, certificate of deposit and money market deposit. It also offers sweep arrangements, commercial loans, construction loans, term loans, safe deposit boxes and electronic banking services. The primary focus of the Bank is to provide banking and related services to small and mid-sized businesses and not-for-profit organizations, as well as banking services for consumers, primarily business owners and their employees.

The Bancorp Company Profile

The Bancorp, Inc. is a financial holding company and its primary subsidiary is The Bancorp Bank (the Bank). The Company has four primary lines of specialty lending: securities backed lines of credit (SBLOC), automobile fleet and other equipment leasing, Small Business Administration (SBA), loans and loans generated for sale into capital markets primarily through both commercial mortgage backed securities (CMBS) and collateralized loan obligations (CLOs). SBLOCs are loans, which are generated through institutional banking affinity groups and are collateralized by marketable securities. SBLOCs are offered in conjunction with brokerage accounts. Automobile fleet and other equipment leases are generated in a range of Atlantic Coast and other states. SBA loans and loans generated for sale into CMBS and securitization capital markets are made nationally. Its prepaid card, private label banking for investment advisory companies and card payment processing are its primary sources of deposits.

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