Contrasting Beverly Hills Bancorp (OTCMKTS:BHBCQ) and Broadway Financial (NASDAQ:BYFC)

Broadway Financial (NASDAQ:BYFC) and Beverly Hills Bancorp (OTCMKTS:BHBCQ) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Profitability

This table compares Broadway Financial and Beverly Hills Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Broadway Financial	-36.31%	1.41%	0.14%
Beverly Hills Bancorp	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Broadway Financial and Beverly Hills Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Broadway Financial	1	0	0	0	1.00
Beverly Hills Bancorp	0	0	0	0	0.00

Given Beverly Hills Bancorp’s higher possible upside, analysts clearly believe Beverly Hills Bancorp is more favorable than Broadway Financial.

Valuation and Earnings

This table compares Broadway Financial and Beverly Hills Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Broadway Financial	$63.76 million	1.13	$1.93 million	($2.96)	-2.66
Beverly Hills Bancorp	N/A	N/A	N/A	N/A	N/A

Broadway Financial has higher revenue and earnings than Beverly Hills Bancorp.

Insider & Institutional Ownership

12.1% of Broadway Financial shares are owned by institutional investors. 4.1% of Broadway Financial shares are owned by insiders. Comparatively, 13.0% of Beverly Hills Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Broadway Financial beats Beverly Hills Bancorp on 5 of the 8 factors compared between the two stocks.

About Broadway Financial

Broadway Financial Corporation operates as the holding company for City First Bank, National Association that provides various banking products and services in the United States. It accepts various deposit accounts, including savings accounts, checking accounts, interest checking accounts, money market accounts, and fixed-term certificates of deposit. The company also offers mortgage loans, which are secured by multi-family residential properties; single family residential properties; and commercial real estate, including charter schools, community facilities, and churches, as well as commercial business, construction, and consumer loans. In addition, it invests in securities issued by federal government agencies, residential mortgage-backed securities, and other investments. The company was founded in 1946 and is headquartered in Los Angeles, California.

About Beverly Hills Bancorp

Beverly Hills Bancorp Inc. is a financial holding company and conducts its banking and lending operations through its primary subsidiary, First Bank of Beverly Hills. The Bank focuses on niche products, including the origination and acquisition of commercial and multi-family real estate loans. The Bank's principal funding sources consist of certificates of deposits generated through independent brokers and its money desk, borrowings from the Federal Home Loan Bank of San Francisco and repurchase agreements with major investment banks. The Bank is a California state-chartered commercial bank and is regulated by the Federal Deposit Insurance Corporation.Beverly Hills Bancorp's common stock is traded on the Nasdaq National Market under the trading symbol "BHBC".