Analyzing Byline Bancorp (NYSE:BY) & First NBC Bank (OTCMKTS:FNBCQ)

Byline Bancorp (NYSE:BY) and First NBC Bank (OTCMKTS:FNBCQ) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares Byline Bancorp and First NBC Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Byline Bancorp	19.42%	12.69%	1.36%
First NBC Bank	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and target prices for Byline Bancorp and First NBC Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Byline Bancorp	0	2	2	0	2.50
First NBC Bank	0	0	0	0	N/A

Byline Bancorp presently has a consensus price target of $29.88, indicating a potential upside of 10.75%. Given Byline Bancorp’s higher possible upside, research analysts clearly believe Byline Bancorp is more favorable than First NBC Bank.

Earnings and Valuation

This table compares Byline Bancorp and First NBC Bank’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Byline Bancorp	$403.05 million	2.95	$107.88 million	$2.73	9.88
First NBC Bank	N/A	N/A	N/A	N/A	N/A

Byline Bancorp has higher revenue and earnings than First NBC Bank.

Insider and Institutional Ownership

67.7% of Byline Bancorp shares are held by institutional investors. 30.1% of Byline Bancorp shares are held by insiders. Comparatively, 8.4% of First NBC Bank shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Byline Bancorp beats First NBC Bank on 8 of the 8 factors compared between the two stocks.

About Byline Bancorp

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits. The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services. In addition, it offers financing solutions for equipment vendors and their end users; syndication services; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.

About First NBC Bank

First NBC Bank Holding Company operates as the bank holding company for First NBC Bank that provides a range of financial services for businesses, institutions, and individuals. The company's deposit products include savings deposits, money market accounts, negotiable order of withdrawal accounts, and certificates of deposit. Its loan portfolio comprises construction, commercial and consumer real estate, commercial and industrial, and consumer loans. The company also offers trust services, credit cards, and wire transfers. As of August 15, 2016, it operated 39 full service banking offices in New Orleans metropolitan area, Mississippi Gulf Coast, and the Florida panhandle. First NBC Bank Holding Company was founded in 2006 and is headquartered in New Orleans, Louisiana. On May 11, 2017, First NBC Bank Holding Company filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Eastern District of Louisiana. First NBC Bank Holding Company operates as a subsidiary of First NMTC 2, LLC.