Bank of Marin Bancorp (NASDAQ: BMRC) and First Community (NASDAQ:FCCO) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.
Bank of Marin Bancorp pays an annual dividend of $1.16 per share and has a dividend yield of 1.7%. First Community pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. Bank of Marin Bancorp pays out 45.0% of its earnings in the form of a dividend. First Community pays out 39.6% 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. First Community is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Bank of Marin Bancorp and First Community’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bank of Marin Bancorp||$84.86 million||5.63||$15.98 million||$2.58||26.78|
|First Community||$41.79 million||3.93||$5.82 million||$1.01||21.44|
Bank of Marin Bancorp has higher revenue and earnings than First Community. First Community is trading at a lower price-to-earnings ratio than Bank of Marin Bancorp, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
41.7% of Bank of Marin Bancorp shares are held by institutional investors. Comparatively, 42.2% of First Community shares are held by institutional investors. 5.2% of Bank of Marin Bancorp shares are held by insiders. Comparatively, 8.6% of First Community shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Bank of Marin Bancorp has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, First Community has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.
This table compares Bank of Marin Bancorp and First Community’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bank of Marin Bancorp||18.83%||8.57%||0.98%|
This is a breakdown of recent ratings for Bank of Marin Bancorp and First Community, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bank of Marin Bancorp||0||3||0||0||2.00|
Bank of Marin Bancorp currently has a consensus target price of $73.67, indicating a potential upside of 6.61%. Given Bank of Marin Bancorp’s higher probable upside, analysts plainly believe Bank of Marin Bancorp is more favorable than First Community.
Bank of Marin Bancorp beats First Community on 9 of the 14 factors compared between the two stocks.
About Bank of Marin Bancorp
Bank of Marin Bancorp (Bancorp) is the holding company for Bank of Marin (the Bank). The Company’s business banking focus is on small to medium-sized businesses, professionals and not-for-profit organizations. The Company operates through 23 offices in Marin, Sonoma, San Francisco, Napa and Alameda counties. It makes international banking services available to its customers indirectly through other financial institutions, with whom it has correspondent banking relationships. The Company offers a range of commercial and retail deposit and lending programs. Its lending categories include commercial real estate loans, commercial and industrial loans, construction financing, consumer loans and home equity lines of credit. The Company offers a range of personal and business checking and savings accounts, and time deposit alternatives.
About First Community
First Community Corporation is a bank holding company for First Community Bank (the Bank). The Bank offers commercial and retail banking services to small-to-medium sized businesses, professional concerns and individuals, primarily in Richland, Lexington, Kershaw and Newberry Counties of South Carolina and the surrounding areas. The Bank offers a range of traditional banking products and services for professionals and small-to medium-sized businesses, including consumer and commercial, mortgage, brokerage and investment, and insurance services. The Bank also offers online banking to its customers. Its other services include Internet banking, cash management services, safe deposit boxes, traveler checks, direct deposit of payroll and social security checks, and automatic drafts for various accounts. The Bank offers non-deposit investment products and other investment brokerage services through a registered representative with an affiliation through LPL Financial.
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