Bryn Mawr Bank Corporation (NASDAQ: BMTC) and Bank of Commerce Holdings (CA) (NASDAQ:BOCH) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.

Profitability

This table compares Bryn Mawr Bank Corporation and Bank of Commerce Holdings (CA)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bryn Mawr Bank Corporation 21.17% 9.96% 1.15%
Bank of Commerce Holdings (CA) 19.12% 8.88% 0.79%

Insider & Institutional Ownership

79.2% of Bryn Mawr Bank Corporation shares are held by institutional investors. Comparatively, 51.6% of Bank of Commerce Holdings (CA) shares are held by institutional investors. 2.3% of Bryn Mawr Bank Corporation shares are held by insiders. Comparatively, 6.9% of Bank of Commerce Holdings (CA) shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Bryn Mawr Bank Corporation pays an annual dividend of $0.88 per share and has a dividend yield of 2.2%. Bank of Commerce Holdings (CA) pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Bryn Mawr Bank Corporation pays out 40.4% of its earnings in the form of a dividend. Bank of Commerce Holdings (CA) pays out 17.9% 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.

Valuation and Earnings

This table compares Bryn Mawr Bank Corporation and Bank of Commerce Holdings (CA)’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bryn Mawr Bank Corporation $161.51 million 4.27 $37.06 million $2.18 18.62
Bank of Commerce Holdings (CA) $42.90 million 3.98 $10.89 million $0.67 15.67

Bryn Mawr Bank Corporation has higher revenue and earnings than Bank of Commerce Holdings (CA). Bank of Commerce Holdings (CA) is trading at a lower price-to-earnings ratio than Bryn Mawr Bank Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Bryn Mawr Bank Corporation and Bank of Commerce Holdings (CA), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bryn Mawr Bank Corporation 0 1 2 0 2.67
Bank of Commerce Holdings (CA) 0 1 0 0 2.00

Bryn Mawr Bank Corporation currently has a consensus price target of $48.50, suggesting a potential upside of 19.46%. Bank of Commerce Holdings (CA) has a consensus price target of $12.00, suggesting a potential upside of 14.29%. Given Bryn Mawr Bank Corporation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Bryn Mawr Bank Corporation is more favorable than Bank of Commerce Holdings (CA).

Volatility and Risk

Bryn Mawr Bank Corporation has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Bank of Commerce Holdings (CA) has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.

Summary

Bryn Mawr Bank Corporation beats Bank of Commerce Holdings (CA) on 14 of the 16 factors compared between the two stocks.

Bryn Mawr Bank Corporation Company Profile

Bryn Mawr Bank Corporation is the bank holding company of the Bryn Mawr Trust Company (the Bank). The Company and its subsidiaries offer a range of personal and business banking services, consumer and commercial loans, equipment leasing, mortgages, insurance and wealth management services, including investment management, trust and estate administration, retirement planning, custody services, and tax planning and preparation from various location across Montgomery, Delaware, Chester, Philadelphia and Dauphin counties of Pennsylvania, and New Castle county in Delaware. The Company’s segments include Banking and Wealth Management. The Banking segment consists of commercial and retail banking. The Wealth Management segment’s activities include trust administration, other related fiduciary services, custody, investment management and advisory services, employee benefits and individual retirement accounts (IRA) administration, estate settlement, tax services and brokerage.

Bank of Commerce Holdings (CA) Company Profile

Bank of Commerce Holdings (Holding Company) is a bank holding company. The Company’s principal business is to serve as a holding company for Redding Bank of Commerce (Bank), which operates under two separate names (Redding Bank of Commerce and Sacramento Bank of Commerce). The Bank operates over four full service facilities in two diverse markets in Northern California. The Bank provides a range of financial services and products for business and retail customers. Its principal products include various types of accounts, such as checking, interest-bearing checking, savings, certificate of deposit and money market deposit. It also offers sweep arrangements, commercial loans, construction loans, term loans, safe deposit boxes and electronic banking services. The primary focus of the Bank is to provide banking and related services to small and mid-sized businesses and not-for-profit organizations, as well as banking services for consumers, primarily business owners and their employees.

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