Contrasting TriCo Bancshares (NASDAQ:TCBK) and Bank of Marin Bancorp (NASDAQ:BMRC)

TriCo Bancshares (NASDAQ:TCBK) and Bank of Marin Bancorp (NASDAQ:BMRC) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TriCo Bancshares	24.67%	10.27%	1.37%
Bank of Marin Bancorp	-18.58%	7.20%	0.78%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for TriCo Bancshares and Bank of Marin Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TriCo Bancshares	0	6	1	0	2.14
Bank of Marin Bancorp	0	4	2	0	2.33

TriCo Bancshares currently has a consensus target price of $56.40, indicating a potential downside of 2.96%. Bank of Marin Bancorp has a consensus target price of $28.40, indicating a potential downside of 1.53%. Given Bank of Marin Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Bank of Marin Bancorp is more favorable than TriCo Bancshares.

Dividends

TriCo Bancshares pays an annual dividend of $1.44 per share and has a dividend yield of 2.5%. Bank of Marin Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 3.5%. TriCo Bancshares pays out 36.5% of its earnings in the form of a dividend. Bank of Marin Bancorp pays out -49.5% 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. TriCo Bancshares has increased its dividend for 12 consecutive years. Bank of Marin Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares TriCo Bancshares and Bank of Marin Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TriCo Bancshares	$538.91 million	3.44	$121.56 million	$3.95	14.71
Bank of Marin Bancorp	$163.98 million	2.85	-$35.67 million	($2.02)	-14.28

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

Insider and Institutional Ownership

59.1% of TriCo Bancshares shares are owned by institutional investors. Comparatively, 52.3% of Bank of Marin Bancorp shares are owned by institutional investors. 4.9% of TriCo Bancshares shares are owned by insiders. Comparatively, 4.9% of Bank of Marin Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

TriCo Bancshares has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Bank of Marin Bancorp has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Summary

TriCo Bancshares beats Bank of Marin Bancorp on 10 of the 17 factors compared between the two stocks.

About TriCo Bancshares

TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to individual and corporate customers. The company accepts demand, savings, and time deposits. It also provides small business loans; real estate mortgage loans, such as residential and commercial loans; consumer loans; mortgage, auto, other vehicle, and personal loans; commercial loans, including agricultural loans; and real estate construction loans. In addition, the company offers treasury management services; credit and debit cards; and other customary banking services, including safe deposit boxes; and independent financial and broker-dealer services. Further, it provides checking, saving, and money market accounts, as well as individual retirement accounts; equipment financing; certificate of deposit account registry service; certificated of deposit; and IntraFi cash service. TriCo Bancshares was founded in 1975 and is headquartered in Chico, California.

About Bank of Marin Bancorp

Bank of Marin Bancorp operates as the holding company for Bank of Marin that provides a range of financial services primarily to small to medium-sized businesses, not-for-profit organizations, and commercial real estate investors in the United States. The company offers personal and business checking and savings accounts; and individual retirement, health savings, and demand deposit marketplace accounts, as well as time certificates of deposit, certificate of deposit account registry, and insured cash sweep services. It also provides commercial real estate, commercial and industrial, and consumer loans, as well as construction financing and home equity lines of credit. In addition, the company offers merchant and payroll services; commercial equipment leasing program; payment solutions; treasury management services; credit cards; and mobile deposit, remote deposit capture, automated clearing house, wire transfer, and image lockbox services. Further, it provides wealth management and trust services comprising customized investment portfolio management, financial planning, trust administration, estate settlement, and custody services, as well as 401(k) plan services; and automated teller machines, and telephone and digital banking services. The company was incorporated in 1989 and is headquartered in Novato, California.