SR Bancorp (NASDAQ:SRBK) vs. Bay Commercial Bank (NASDAQ:BCML) Head to Head Review
by Danessa Lincoln · The Markets DailySR Bancorp (NASDAQ:SRBK – Get Free Report) and Bay Commercial Bank (NASDAQ:BCML – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Profitability
This table compares SR Bancorp and Bay Commercial Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SR Bancorp | 6.95% | 1.82% | 0.29% |
| Bay Commercial Bank | 6.53% | 7.54% | 0.98% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for SR Bancorp and Bay Commercial Bank, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SR Bancorp | 0 | 2 | 0 | 0 | 2.00 |
| Bay Commercial Bank | 0 | 4 | 0 | 1 | 2.40 |
SR Bancorp presently has a consensus price target of $19.00, suggesting a potential upside of 0.26%. Bay Commercial Bank has a consensus price target of $34.00, suggesting a potential upside of 9.11%. Given Bay Commercial Bank’s stronger consensus rating and higher probable upside, analysts clearly believe Bay Commercial Bank is more favorable than SR Bancorp.
Dividends
SR Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.3%. Bay Commercial Bank pays an annual dividend of $1.20 per share and has a dividend yield of 3.9%. SR Bancorp pays out 47.1% of its earnings in the form of a dividend. Bay Commercial Bank pays out 142.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bay Commercial Bank has increased its dividend for 3 consecutive years. Bay Commercial Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares SR Bancorp and Bay Commercial Bank”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SR Bancorp | $51.80 million | 2.90 | $3.35 million | $0.51 | 37.16 |
| Bay Commercial Bank | $97.92 million | 3.47 | $23.93 million | $0.84 | 37.10 |
Bay Commercial Bank has higher revenue and earnings than SR Bancorp. Bay Commercial Bank is trading at a lower price-to-earnings ratio than SR Bancorp, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
24.7% of SR Bancorp shares are owned by institutional investors. Comparatively, 66.2% of Bay Commercial Bank shares are owned by institutional investors. 9.9% of SR Bancorp shares are owned by insiders. Comparatively, 2.9% of Bay Commercial Bank shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk & Volatility
SR Bancorp has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, Bay Commercial Bank has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500.
Summary
Bay Commercial Bank beats SR Bancorp on 12 of the 17 factors compared between the two stocks.
About SR Bancorp
SR Bancorp, Inc. operates as the holding company for Somerset Regal Bank that provides customary retail and commercial banking services to individuals, businesses, and local municipalities in the communities of Somerset, Middlesex, Hunterdon, and Essex counties in New Jersey. It offers deposit instruments, including noninterest-bearing demand deposits, interest-bearing demand accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides loans comprising one- to four family-residential mortgage loans, home equity loans and lines of credit, unsecured personal loans, and rehabilitation loans; and bill payment services. In addition, it is involved in the investment activities. The company was founded in 1887 and is headquartered in Bound Brook, New Jersey.
About Bay Commercial Bank
BayCom Corp operates as the bank holding company for United Business Bank that provides various financial services to small and mid-sized businesses, service professionals, and individuals. The company provides demand, savings, money market, and time deposit accounts. It offers commercial and multifamily real estate loans, including owner-occupied and investor real estate loans; commercial and industrial loans, such as equipment loans and working capital lines of credit; small business administration loans; construction and land loans; agriculture-related loans; and consumer loans comprising installment loans, unsecured and secured personal lines of credit, and overdraft protection. In addition, the company provides online and mobile banking, automated teller machine, remote deposit capture, night depository, courier, direct deposit, treasury management, wire transfer, automated clearing house, debit cards, cashier's and travelers checks, letters of credit, lockbox, positive pay, reverse positive pay, and account reconciliation services, as well as zero balance accounts and sweep accounts, including loan sweep. It operates through a network of full-service banking branches in Northern and Southern California; Las Vegas, Nevada; Denver, Colorado; Custer, Delta, and Grand counties, Colorado; and Seattle, Washington and Central New Mexico. The company was formerly known as Bay Commercial Bank and changed its name to BayCom Corp in January 2017. BayCom Corp was incorporated in 2004 and is headquartered in Walnut Creek, California.