Analyzing BCB Bancorp (BCBP) and BNC Bancorp (BNCN)

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

Insider and Institutional Ownership

32.6% of BCB Bancorp shares are owned by institutional investors. Comparatively, 62.6% of BNC Bancorp shares are owned by institutional investors. 16.8% of BCB Bancorp shares are owned by company insiders. Comparatively, 6.2% of BNC Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for BCB Bancorp and BNC 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
BNC Bancorp 0 1 0 0 2.00

BCB Bancorp presently has a consensus target price of $14.50, suggesting a potential downside of 1.69%. BNC Bancorp has a consensus target price of $37.75, suggesting a potential upside of Infinity. Given BNC Bancorp’s higher probable upside, analysts plainly believe BNC Bancorp is more favorable than BCB Bancorp.

Profitability

This table compares BCB Bancorp and BNC 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%
BNC Bancorp 19.39% 6.37% 0.77%

Earnings & Valuation

This table compares BCB Bancorp and BNC Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BCB Bancorp $77.48 million 2.86 $8.00 million $0.96 15.36
BNC Bancorp N/A N/A N/A $1.32 N/A

BCB Bancorp has higher revenue and earnings than BNC Bancorp. BNC Bancorp is trading at a lower price-to-earnings ratio than BCB Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

BCB Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. BNC Bancorp pays an annual dividend of $0.05 per share. BCB Bancorp pays out 58.3% of its earnings in the form of a dividend. BNC Bancorp pays out 3.8% 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.

Summary

BNC Bancorp beats BCB Bancorp on 7 of the 13 factors compared between the two stocks.

About BCB Bancorp

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.

About BNC Bancorp

BNC Bancorp is a one-bank holding company for Bank of North Carolina (the Bank). The Bank is a full service commercial bank, which provides a range of banking services tailored to the particular banking needs of the communities it serves. It is engaged in the business of attracting deposits from the general public and using those deposits, together with other funding from its lines of credit, to make commercial and consumer loans. It provides banking services to individuals and small to medium-sized local businesses. It also offers a range of banking services, including traditional products, such as checking and savings accounts. Its other banking services include Mortgage Lending, Small Business Administration Lending, Wealth Management Services and Insurance Services. It offers an array of residential mortgage products, including long-term fixed rate and variable rate loans. Its Wealth Management Services include financial planning, wealth management, and trust and estate planning.

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