Critical Survey: Banco Comercial Portugues (OTCMKTS:BPCGY) vs. Coastal Financial (NASDAQ:CCB)

Banco Comercial Portugues (OTCMKTS:BPCGY) and Coastal Financial (NASDAQ:CCB) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Analyst Recommendations

This is a summary of current recommendations for Banco Comercial Portugues and Coastal Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banco Comercial Portugues	0	1	0	1	3.00
Coastal Financial	2	0	5	0	2.43

Coastal Financial has a consensus price target of $91.33, indicating a potential upside of 92.01%. Given Coastal Financial’s higher possible upside, analysts clearly believe Coastal Financial is more favorable than Banco Comercial Portugues.

Insider and Institutional Ownership

59.2% of Coastal Financial shares are held by institutional investors. 13.5% of Coastal Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Banco Comercial Portugues has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500. Comparatively, Coastal Financial has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Profitability

This table compares Banco Comercial Portugues and Coastal Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banco Comercial Portugues	N/A	N/A	N/A
Coastal Financial	-0.53%	-0.80%	-0.08%

Valuation and Earnings

This table compares Banco Comercial Portugues and Coastal Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banco Comercial Portugues	$5.82 billion	3.56	$980.79 million	$0.91	15.38
Coastal Financial	$661.22 million	1.10	$46.99 million	($0.28)	-169.88

Banco Comercial Portugues has higher revenue and earnings than Coastal Financial. Coastal Financial is trading at a lower price-to-earnings ratio than Banco Comercial Portugues, indicating that it is currently the more affordable of the two stocks.

Summary

Banco Comercial Portugues beats Coastal Financial on 10 of the 15 factors compared between the two stocks.

About Banco Comercial Portugues

Banco Comercial Português, S.A., a private sector bank, engages in the provision of various banking and financial products and services in Portugal and internationally. It operates through Retail Banking; Companies, Corporate & Investment Banking; Private Banking; Foreign Business; and Other segments. It offers a range of financial products and services, including current accounts, payment systems, savings and investment products, private banking, asset management, and investment banking services, such as mortgage loans, personal loans, commercial banking, leasing, factoring and insurance, and others. The company is also involved in the provision of investment fund and real estate management, e-commerce, web portal, real estate investment fund, trade finance, trust, consulting, brokerage, marketing, and real estate services, as well as internet, telephone, and mobile banking services. Banco Comercial Português, S.A. was incorporated in 1985 and is based in Porto, Portugal.

About Coastal Financial

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company also offers commercial and industrial loans, such as term loans, commercial lines of credit, capital call lines working capital loans, equipment financing, borrowing base loans, small business administration loans, and other loan products; owner and non-owner-occupied real estate loans, and multi-family residential loans; construction, land, and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as personal lines of credit, including overdraft protection. In addition, it provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services; and debit cards. Further, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as Banking as a Service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their customers banking services. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.