Reviewing Bank of Marin Bancorp (BMRC) & First Community (FCCO)

Bank of Marin Bancorp (NASDAQ: BMRC) and First Community (NASDAQ:FCCO) are both small-cap financials companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Profitability

This table compares Bank of Marin Bancorp and First Community’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank of Marin Bancorp 18.83% 8.57% 0.98%
First Community 13.91% 8.73% 0.81%

Risk & Volatility

Bank of Marin Bancorp has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, First Community has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Bank of Marin Bancorp and First Community, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank of Marin Bancorp 0 3 0 0 2.00
First Community 0 0 0 0 N/A

Bank of Marin Bancorp presently has a consensus target price of $73.67, suggesting a potential upside of 9.70%. Given Bank of Marin Bancorp’s higher probable upside, equities analysts clearly believe Bank of Marin Bancorp is more favorable than First Community.

Dividends

Bank of Marin Bancorp pays an annual dividend of $1.16 per share and has a dividend yield of 1.7%. First Community pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Bank of Marin Bancorp pays out 45.0% of its earnings in the form of a dividend. First Community pays out 47.1% 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

41.7% of Bank of Marin Bancorp shares are held by institutional investors. Comparatively, 42.2% of First Community shares are held by institutional investors. 5.2% of Bank of Marin Bancorp shares are held by insiders. Comparatively, 8.7% of First Community shares are held 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.

Valuation & Earnings

This table compares Bank of Marin Bancorp and First Community’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bank of Marin Bancorp $84.86 million 5.48 $15.98 million $2.58 26.03
First Community $41.79 million 3.79 $5.82 million $0.85 24.53

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

Summary

Bank of Marin Bancorp beats First Community on 10 of the 14 factors compared between the two stocks.

Bank of Marin Bancorp Company Profile

Bank of Marin Bancorp (Bancorp) is the holding company for Bank of Marin (the Bank). The Company’s business banking focus is on small to medium-sized businesses, professionals and not-for-profit organizations. The Company operates through 23 offices in Marin, Sonoma, San Francisco, Napa and Alameda counties. It makes international banking services available to its customers indirectly through other financial institutions, with whom it has correspondent banking relationships. The Company offers a range of commercial and retail deposit and lending programs. Its lending categories include commercial real estate loans, commercial and industrial loans, construction financing, consumer loans and home equity lines of credit. The Company offers a range of personal and business checking and savings accounts, and time deposit alternatives.

First Community Company Profile

First Community Corporation is a bank holding company for First Community Bank (the Bank). The Bank offers commercial and retail banking services to small-to-medium sized businesses, professional concerns and individuals, primarily in Richland, Lexington, Kershaw and Newberry Counties of South Carolina and the surrounding areas. The Bank offers a range of traditional banking products and services for professionals and small-to medium-sized businesses, including consumer and commercial, mortgage, brokerage and investment, and insurance services. The Bank also offers online banking to its customers. Its other services include Internet banking, cash management services, safe deposit boxes, traveler checks, direct deposit of payroll and social security checks, and automatic drafts for various accounts. The Bank offers non-deposit investment products and other investment brokerage services through a registered representative with an affiliation through LPL Financial.

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