USCB Financial (NASDAQ:USCB) versus Dime Community Bancshares (NASDAQ:DCOM) Financial Contrast

Dime Community Bancshares (NASDAQ:DCOM) and USCB Financial (NASDAQ:USCB) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Risk & Volatility

Dime Community Bancshares has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, USCB Financial has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.

Profitability

This table compares Dime Community Bancshares and USCB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dime Community Bancshares	15.15%	9.12%	0.83%
USCB Financial	17.04%	15.44%	1.23%

Insider and Institutional Ownership

75.3% of Dime Community Bancshares shares are held by institutional investors. Comparatively, 61.3% of USCB Financial shares are held by institutional investors. 7.4% of Dime Community Bancshares shares are held by insiders. Comparatively, 49.5% of USCB Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Dime Community Bancshares and USCB Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dime Community Bancshares	$473.00 million	3.48	$110.68 million	$2.66	14.01
USCB Financial	$159.60 million	2.15	$26.10 million	$1.43	13.16

Dime Community Bancshares has higher revenue and earnings than USCB Financial. USCB Financial is trading at a lower price-to-earnings ratio than Dime Community Bancshares, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Dime Community Bancshares and USCB Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dime Community Bancshares	0	2	3	1	2.83
USCB Financial	0	2	2	1	2.80

Dime Community Bancshares presently has a consensus target price of $39.75, suggesting a potential upside of 6.64%. USCB Financial has a consensus target price of $22.00, suggesting a potential upside of 16.90%. Given USCB Financial’s higher probable upside, analysts clearly believe USCB Financial is more favorable than Dime Community Bancshares.

Dividends

Dime Community Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 2.7%. USCB Financial pays an annual dividend of $0.50 per share and has a dividend yield of 2.7%. Dime Community Bancshares pays out 37.6% of its earnings in the form of a dividend. USCB Financial pays out 35.0% 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. Dime Community Bancshares has increased its dividend for 2 consecutive years and USCB Financial has increased its dividend for 2 consecutive years.

Summary

Dime Community Bancshares beats USCB Financial on 10 of the 16 factors compared between the two stocks.

About Dime Community Bancshares

Dime Community Bancshares, Inc. operates as the holding company for Dime Community Bank that engages in the provision of various commercial banking and financial services. The company accepts time, savings, and demand deposits from the businesses, consumers, and local municipalities. It also offers commercial real estate loans; multi-family mortgage loans; residential mortgage loans; letters of credit; secured and unsecured commercial and consumer loans; lines of credit; home equity loans; and construction and land loans. In addition, the company invests in Federal Home Loan Bank, Federal National Mortgage Association, Government National Mortgage Association, and Federal Home Loan Mortgage Corporation mortgage-backed securities, collateralized mortgage obligations, and other asset backed securities; U.S. Treasury securities; New York state and local municipal obligations; U.S. government-sponsored enterprise securities; and corporate bonds. Further, it offers certificate of deposit account registry services and insured cash sweep programs; federal deposit insurance corporation insurance; merchant credit and debit card processing, automated teller machines, cash management services, lockbox processing, online banking services, remote deposit capture, safe deposit boxes, and individual retirement accounts; investment products and services through a third-party broker dealer; and title insurance broker services for small and medium sized businesses, and municipal and consumer relationships. The company was founded in 1910 and is headquartered in Hauppauge, New York.

About USCB Financial

USCB Financial Holdings, Inc. operates as the bank holding company for U.S. Century Bank that engages in the provision of various personal and business banking products and services in the United States. It accepts various deposit products, including commercial and consumer checking, money market deposit, savings, and time deposit accounts, as well as certificates of deposit. It also offers loan products, such as small business administration loans, yacht financing, residential and commercial real estate loans; commercial and industrial loans; foreign bank loans; and secured and unsecured consumer loans comprising personal loans, overdrafts, and deposit account collateralized loans. The company also offers lockbox, treasury, commercial payments, cash management, and online banking services, as well as provides title insurance policies for real estate transactions. USCB Financial Holdings, Inc. was founded in 2002 and is headquartered in Miami, Florida.