RBB Bancorp (NASDAQ:RBB) & Sound Financial Bancorp (NASDAQ:SFBC) Head-To-Head Analysis

RBB Bancorp (NASDAQ:RBB) and Sound Financial Bancorp (NASDAQ:SFBC) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Profitability

This table compares RBB Bancorp and Sound Financial Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RBB Bancorp	9.16%	4.10%	0.53%
Sound Financial Bancorp	8.12%	4.89%	0.48%

Dividends

RBB Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 3.9%. Sound Financial Bancorp pays an annual dividend of $0.76 per share and has a dividend yield of 1.7%. RBB Bancorp pays out 55.2% of its earnings in the form of a dividend. Sound Financial Bancorp pays out 39.0% 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. Sound Financial Bancorp has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of current ratings and recommmendations for RBB Bancorp and Sound Financial Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RBB Bancorp	0	4	0	0	2.00
Sound Financial Bancorp	0	0	0	0	0.00

RBB Bancorp presently has a consensus price target of $21.25, indicating a potential upside of 28.94%. Given RBB Bancorp’s stronger consensus rating and higher possible upside, equities analysts plainly believe RBB Bancorp is more favorable than Sound Financial Bancorp.

Earnings and Valuation

This table compares RBB Bancorp and Sound Financial Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RBB Bancorp	$232.00 million	1.26	$26.67 million	$1.16	14.21
Sound Financial Bancorp	$62.03 million	1.85	$4.64 million	$1.95	22.87

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

Risk and Volatility

RBB Bancorp has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Sound Financial Bancorp has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500.

Insider & Institutional Ownership

40.1% of RBB Bancorp shares are held by institutional investors. Comparatively, 68.9% of Sound Financial Bancorp shares are held by institutional investors. 4.6% of RBB Bancorp shares are held by company insiders. Comparatively, 12.4% of Sound Financial Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

About RBB Bancorp

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American, Korean-American, and other Asian-American communities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company also offers commercial and industrial lines of credit, term loans, mortgage warehouse lines, and international trade discounts; commercial real estate loans; residential, commercial, and land acquisition and development construction loans; small business administration loans; and single-family residential mortgage loans. In addition, it provides international letters of credit, SWIFT, export advisory, trade finance discount, and foreign exchange services; and remote deposit, e-banking, and mobile banking services. The company serves individuals, businesses, municipalities, and other entities. It operates branches in the Western region with branches in Los Angeles County, California; Orange County, California; Ventura County, California; Clark County, Nevada; Honolulu, Hawaii, as well as in Eastern region with branches in Manhattan, Brooklyn and Queens, New York; Chicago, Illinois; and Edison, New Jersey. RBB Bancorp was founded in 2008 and is headquartered in Los Angeles, California.

About Sound Financial Bancorp

Sound Financial Bancorp, Inc. operates as the bank holding company for Sound Community Bank that provides banking and other financial services for consumers and businesses. It accepts various deposits products comprising savings, money market deposit, NOW, and demand accounts, as well as certificates of deposit. The company also offers loans secured by first and second mortgages on one-to four-family residences; home equity loans, including fixed-rate loans and variable-rate lines of credit; commercial and multifamily real estate loans; construction loans secured by single-family residences, and commercial and multifamily real estate; land loans; commercial business loans to finance commercial vehicles and equipment, as well as loans secured by accounts receivable and/or inventory; and secured and unsecured consumer loans, such as new and used manufactured homes, floating homes, automobiles, boats, and recreational vehicle loans, and loans secured by deposit accounts. The company was founded in 1953 and is headquartered in Seattle, Washington.