Financial Contrast: BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP) versus MainStreet Bank (NASDAQ:MNSB)

MainStreet Bank (NASDAQ:MNSB) and BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Volatility and Risk

MainStreet Bank has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, BCB Bancorp, Inc. (NJ) has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Dividends

MainStreet Bank pays an annual dividend of $0.40 per share and has a dividend yield of 2.0%. BCB Bancorp, Inc. (NJ) pays an annual dividend of $0.64 per share and has a dividend yield of 8.0%. MainStreet Bank pays out -44.4% of its earnings in the form of a dividend. BCB Bancorp, Inc. (NJ) pays out 1,280.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

52.3% of MainStreet Bank shares are held by institutional investors. Comparatively, 36.0% of BCB Bancorp, Inc. (NJ) shares are held by institutional investors. 9.3% of MainStreet Bank shares are held by insiders. Comparatively, 15.9% of BCB Bancorp, Inc. (NJ) 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.

Profitability

This table compares MainStreet Bank and BCB Bancorp, Inc. (NJ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MainStreet Bank	-3.32%	6.05%	0.52%
BCB Bancorp, Inc. (NJ)	1.50%	0.95%	0.08%

Valuation and Earnings

This table compares MainStreet Bank and BCB Bancorp, Inc. (NJ)”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MainStreet Bank	$137.87 million	1.12	-$9.98 million	($0.90)	-22.26
BCB Bancorp, Inc. (NJ)	$196.95 million	0.70	$18.62 million	$0.05	160.00

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

Analyst Recommendations

This is a summary of recent ratings and price targets for MainStreet Bank and BCB Bancorp, Inc. (NJ), as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MainStreet Bank	1	1	0	0	1.50
BCB Bancorp, Inc. (NJ)	2	2	0	0	1.50

BCB Bancorp, Inc. (NJ) has a consensus target price of $9.25, indicating a potential upside of 15.63%. Given BCB Bancorp, Inc. (NJ)’s higher possible upside, analysts clearly believe BCB Bancorp, Inc. (NJ) is more favorable than MainStreet Bank.

Summary

BCB Bancorp, Inc. (NJ) beats MainStreet Bank on 9 of the 14 factors compared between the two stocks.

About MainStreet Bank

MainStreet Bancshares, Inc. operates as the bank holding company for MainStreet Bank that provides various banking products and services for individuals, small to medium-sized businesses, and professional service organizations. The company offers demand, NOW, money market, savings, and sweep accounts, as well as certificates of deposit; business and consumer checking, interest-bearing checking, business account analysis, and other depository services; and cash management, wire transfer, check imaging, bill pay, remote deposit capture, and courier services. It also provides commercial loans, include government contract receivables, plant and equipment, general working capital, contract administration, and acquisition loans; commercial real estate, real estate construction, and residential real estate loans; and consumer loans comprising term loans and overdraft protection, as well as debit and credit cards. In addition, the company offers deposit insurance solutions; remote deposit of checks; and internet bill payment, online cash management, and online and mobile banking services. It operates in Herndon, Fairfax, McLean, Leesburg, Clarendon, and Washington D.C., as well as automated teller machines. The company was incorporated in 2003 and is headquartered in Fairfax, Virginia.

About BCB Bancorp, Inc. (NJ)

BCB Bancorp, Inc. operates as a bank holding company for BCB Community Bank that engages in the provision of banking products and services to businesses and individuals in the United States. The company offers insured deposit products, including savings and club accounts, interest and non-interest-bearing demand accounts, money market accounts, certificates of deposit, and individual retirement accounts. It also provides various loan products, such as commercial and multi-family real estate loans, one-to-four family mortgage loans, commercial business loans, construction loans, home equity loans, and consumer loans. In addition, the company offers retail and commercial banking services comprising wire transfer, money order, safe deposit box, night depository, debit card, online and mobile banking, fraud detection, and automated teller services. The company was founded in 2000 and is based in Bayonne, New Jersey.