BCB Bancorp (NASDAQ: BCBP) and 1st Constitution Bancorp (NASDAQ:FCCY) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.
This table compares BCB Bancorp and 1st Constitution Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|1st Constitution Bancorp||13.64%||8.04%||0.83%|
This table compares BCB Bancorp and 1st Constitution Bancorp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BCB Bancorp||$85.05 million||2.77||$9.98 million||$0.92||17.01|
|1st Constitution Bancorp||$49.90 million||3.67||$6.92 million||$1.06||20.66|
BCB Bancorp has higher revenue and earnings than 1st Constitution Bancorp. BCB Bancorp is trading at a lower price-to-earnings ratio than 1st Constitution Bancorp, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for BCB Bancorp and 1st Constitution Bancorp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|1st Constitution Bancorp||0||1||0||0||2.00|
BCB Bancorp presently has a consensus target price of $14.50, indicating a potential downside of 7.35%. 1st Constitution Bancorp has a consensus target price of $18.00, indicating a potential downside of 17.81%. Given BCB Bancorp’s stronger consensus rating and higher possible upside, equities research analysts plainly believe BCB Bancorp is more favorable than 1st Constitution Bancorp.
Insider & Institutional Ownership
32.2% of BCB Bancorp shares are owned by institutional investors. Comparatively, 27.3% of 1st Constitution Bancorp shares are owned by institutional investors. 14.4% of BCB Bancorp shares are owned by insiders. Comparatively, 14.5% of 1st Constitution Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
BCB Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 3.6%. 1st Constitution Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. BCB Bancorp pays out 60.9% of its earnings in the form of a dividend. 1st Constitution Bancorp pays out 22.6% 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.
Volatility and Risk
BCB Bancorp has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, 1st Constitution Bancorp has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.
BCB Bancorp beats 1st Constitution Bancorp on 9 of the 16 factors compared between the two stocks.
BCB Bancorp Company Profile
BCB Bancorp, Inc. is the holding company parent of BCB Community Bank (the Bank). The Bank is a community-oriented financial institution. Its business is to offer Federal Deposit Insurance Corporation (FDIC)-insured deposit products and to invest funds held in deposit accounts at the Bank, together with funds generated from operations, in loans and investment securities. It offers loans, including commercial and multi-family real estate loans, one- to four-family mortgage loans, home equity loans, construction loans, consumer loans and commercial business loans; FDIC-insured deposit products, such as savings and club accounts, interest and non-interest bearing demand accounts, money market accounts, certificates of deposit and individual retirement accounts, and retail and commercial banking services, including wire transfers, money orders, safe deposit boxes, a night depository, debit cards, online banking, gift cards, fraud detection and automated teller services.
1st Constitution Bancorp Company Profile
1st Constitution Bancorp operates as the bank holding company for 1st Constitution Bank that provides commercial and retail banking services in the central and northeastern New Jersey areas. The company offers deposit products, including interest bearing demand deposits, such as interest-bearing checking accounts, money market accounts, and NOW accounts; and non-interest bearing demand, savings, and time deposits, as well as certificates of deposit. It also provides commercial loans, including term loans, lines of credit, and loans secured by equipment and receivables; secured and unsecured short-to-medium term commercial loans to businesses for working capital, business expansion, and the purchase of equipment and machinery; and construction loans to real estate developers for the acquisition, development, and construction of residential and commercial properties. In addition, the company offers residential first mortgage loans secured by owner-occupied property; construction loans; reverse mortgages; second mortgage home improvement loans; home equity lines of credit; and non-residential consumer loans for automobiles, recreation vehicles, and boats, as well as secured and unsecured personal loans, and deposit account secured loans. It serves corporations, individuals, partnerships, and other community organizations, as well as small businesses and not-for-profit organizations. As of December 31, 2017, the company operated through 17 branch offices, as well as 2 residential mortgage loan production offices in New Jersey. 1st Constitution Bancorp was founded in 1989 and is based in Cranbury, New Jersey.
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