Head-To-Head Review: BCB Bancorp (BCBP) vs. Metro Bancorp (METR)

BCB Bancorp (NASDAQ: BCBP) and Metro Bancorp (NASDAQ:METR) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Dividends

BCB Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.6%. Metro Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.0%. BCB Bancorp pays out 58.3% of its earnings in the form of a dividend. Metro Bancorp pays out 20.0% 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.

Institutional & Insider Ownership

32.5% of BCB Bancorp shares are owned by institutional investors. 16.8% of BCB Bancorp shares are owned 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.

Profitability

This table compares BCB Bancorp and Metro Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BCB Bancorp 14.19% 9.04% 0.65%
Metro Bancorp 16.68% 7.88% 0.75%

Valuation and Earnings

This table compares BCB Bancorp and Metro Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BCB Bancorp $77.48 million 3.05 $8.00 million $0.96 16.35
Metro Bancorp N/A N/A N/A $1.40 20.14

BCB Bancorp has higher revenue and earnings than Metro Bancorp. BCB Bancorp is trading at a lower price-to-earnings ratio than Metro 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 BCB Bancorp and Metro Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BCB Bancorp 0 0 2 0 3.00
Metro Bancorp 0 0 0 0 N/A

BCB Bancorp currently has a consensus price target of $14.50, indicating a potential downside of 7.64%. Given BCB Bancorp’s higher probable upside, equities research analysts plainly believe BCB Bancorp is more favorable than Metro Bancorp.

Summary

BCB Bancorp beats Metro Bancorp on 7 of the 12 factors compared between the two stocks.

BCB Bancorp Company Profile

BCB Bancorp, Inc. is the holding company parent of BCB Community Bank (the Bank). The Bank is a community-oriented financial institution. Its business is to offer Federal Deposit Insurance Corporation (FDIC)-insured deposit products and to invest funds held in deposit accounts at the Bank, together with funds generated from operations, in loans and investment securities. It offers loans, including commercial and multi-family real estate loans, one- to four-family mortgage loans, home equity loans, construction loans, consumer loans and commercial business loans; FDIC-insured deposit products, such as savings and club accounts, interest and non-interest bearing demand accounts, money market accounts, certificates of deposit and individual retirement accounts, and retail and commercial banking services, including wire transfers, money orders, safe deposit boxes, a night depository, debit cards, online banking, gift cards, fraud detection and automated teller services.

Metro Bancorp Company Profile

Metro Bancorp, Inc. is a bank holding company. The Company provides full banking services through its subsidiary, Metro Bank (the Bank), which is a state-chartered bank. The Bank offers its lending and depository services from its main store in Lemoyne, Pennsylvania, and its around 33 other full-service stores located in Cumberland, Dauphin, York, Berks, Lancaster and Lebanon Counties, Pennsylvania. The Bank provides retail and commercial banking services for consumers and small and mid-sized companies. The Bank’s lending and investment activities are funded principally by retail deposits gathered through its retail store office network. The Bank provides a range of retail banking services and products, including free personal checking accounts and business checking accounts, regular savings accounts, money market accounts, interest checking accounts, fixed rate certificates of deposit (CDs), individual retirement accounts, club accounts, and debit card services, among others.

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