Head to Head Analysis: First Republic Bank (OTCMKTS:FRCB) and Northrim BanCorp (NASDAQ:NRIM)

Northrim BanCorp (NASDAQ:NRIM) and First Republic Bank (OTCMKTS:FRCB) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares Northrim BanCorp and First Republic Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northrim BanCorp	24.91%	16.99%	1.63%
First Republic Bank	N/A	N/A	N/A

Valuation & Earnings

This table compares Northrim BanCorp and First Republic Bank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northrim BanCorp	$255.58 million	2.15	$64.61 million	$2.88	8.58
First Republic Bank	N/A	N/A	N/A	$1.23	0.00

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

Institutional & Insider Ownership

66.0% of Northrim BanCorp shares are owned by institutional investors. Comparatively, 0.0% of First Republic Bank shares are owned by institutional investors. 2.4% of Northrim BanCorp shares are owned by insiders. Comparatively, 0.7% of First Republic Bank shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Northrim BanCorp has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, First Republic Bank has a beta of 3.3, indicating that its stock price is 230% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Northrim BanCorp and First Republic Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northrim BanCorp	0	1	2	0	2.67
First Republic Bank	0	0	0	0	0.00

Northrim BanCorp presently has a consensus target price of $33.00, suggesting a potential upside of 33.55%. Given Northrim BanCorp’s stronger consensus rating and higher probable upside, equities analysts clearly believe Northrim BanCorp is more favorable than First Republic Bank.

Summary

Northrim BanCorp beats First Republic Bank on 11 of the 12 factors compared between the two stocks.

About Northrim BanCorp

Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals. It operates through two segments, Community Banking and Home Mortgage Lending. The company offers noninterest-bearing checking accounts and interest-bearing time deposits, checking and savings accounts, individual retirement and money market deposit accounts, certificates of deposit, and business sweep accounts. It also provides short and medium-term commercial loans, commercial credit lines, construction and real estate loans, and consumer loans, as well as short-term working capital. In addition, the company offers other services comprising consumer and business online banking, mobile app, and mobile deposits; and debit and credit cards. Further, it provides mobile web and app banking, consumer online account opening, personal finance, online documents, consumer debit cards, business debit cards, my rewards for consumer debit cards, retail lockbox, card control, corporate purchase cards, integrated payables, home equity advantage access cards, telebanking, and automated teller services. Additionally, the company offers personalized checks at account opening, overdraft protection from a savings account, commercial drive-up banking, automatic transfer and payment, People Pay, external transfer, Bill Pay, wire transfer, direct payroll deposit, electronic tax payment, Automated Clearing House origination and receipt, remote deposit capture, account reconciliation and positive pay, merchant, cash management, annuity, and long-term investment portfolio products and services. It also provides investment advisory, trust, wealth management, factoring, and mortgage services. The company was founded in 1990 and is headquartered in Anchorage, Alaska.

About First Republic Bank

As of May 1, 2023, First Republic Bank went out of business. Previously, First Republic Bank provided private banking, private business banking, and private wealth management services to clients in metropolitan areas in the United States. The company was founded in 1985 and was headquartered in San Francisco, California. First Republic Bank now trades on OTCPK.