Critical Comparison: RBB Bancorp (NASDAQ:RBB) & Glacier Bancorp (NYSE:GBCI)

RBB Bancorp (NASDAQ:RBB) and Glacier Bancorp (NYSE:GBCI) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Dividends

RBB Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 3.1%. Glacier Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 2.6%. RBB Bancorp pays out 35.0% of its earnings in the form of a dividend. Glacier Bancorp pays out 66.3% 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. RBB Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

RBB Bancorp has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Glacier Bancorp has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Profitability

This table compares RBB Bancorp and Glacier Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RBB Bancorp	13.42%	6.21%	0.78%
Glacier Bancorp	16.63%	6.68%	0.83%

Analyst Ratings

This is a summary of current recommendations for RBB Bancorp and Glacier Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RBB Bancorp	0	5	0	0	2.00
Glacier Bancorp	0	1	2	1	3.00

RBB Bancorp presently has a consensus price target of $22.33, indicating a potential upside of 8.78%. Glacier Bancorp has a consensus price target of $56.50, indicating a potential upside of 13.18%. Given Glacier Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Glacier Bancorp is more favorable than RBB Bancorp.

Earnings & Valuation

This table compares RBB Bancorp and Glacier Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RBB Bancorp	$238.00 million	1.47	$26.67 million	$1.83	11.22
Glacier Bancorp	$1.44 billion	4.51	$239.03 million	$1.99	25.09

Glacier Bancorp has higher revenue and earnings than RBB Bancorp. RBB Bancorp is trading at a lower price-to-earnings ratio than Glacier Bancorp, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

40.1% of RBB Bancorp shares are held by institutional investors. Comparatively, 80.2% of Glacier Bancorp shares are held by institutional investors. 4.6% of RBB Bancorp shares are held by company insiders. Comparatively, 0.5% of Glacier Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Glacier Bancorp beats RBB Bancorp on 13 of the 17 factors compared between the two stocks.

About RBB Bancorp

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American, Korean-American, and other Asian-American communities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company also offers commercial and industrial lines of credit, term loans, mortgage warehouse lines, and international trade discounts; commercial real estate loans; residential, commercial, and land acquisition and development construction loans; small business administration loans; and single-family residential mortgage loans. In addition, it provides international letters of credit, SWIFT, export advisory, trade finance discount, and foreign exchange services; and remote deposit, e-banking, and mobile banking services. The company serves individuals, businesses, municipalities, and other entities. It operates branches in the Western region with branches in Los Angeles County, California; Orange County, California; Ventura County, California; Clark County, Nevada; Honolulu, Hawaii, as well as in Eastern region with branches in Manhattan, Brooklyn and Queens, New York; Chicago, Illinois; and Edison, New Jersey. RBB Bancorp was founded in 2008 and is headquartered in Los Angeles, California.

About Glacier Bancorp

Glacier Bancorp, Inc. operates as the bank holding company for Glacier Bank that provides commercial banking services to individuals, small to medium-sized businesses, community organizations, and public entities in the United States. It offers non-interest bearing deposit and interest bearing deposit accounts, such as negotiable order of withdrawal and demand deposit accounts, savings accounts, money market deposit accounts, fixed rate certificates of deposit, negotiated-rate jumbo certificates, and individual retirement accounts. The company also provides construction and permanent loans on residential real estate; consumer land or lot acquisition loans; unimproved land and land development loans; and residential builder guidance lines comprising pre-sold and spec-home construction, and lot acquisition loans. In addition, it offers commercial real estate loans to purchase, construct, and finance commercial real estate properties; consumer loans secured by real estate, automobiles, or other assets; paycheck protection program loans; home equity loans consisting of junior lien mortgages, and first and junior lien lines of credit secured by owner-occupied 1-4 family residences; and agriculture loans. Further, the company provides mortgage origination and loan servicing services. It has 224 locations, including 188 branches and 36 loan or administration offices in 75 counties within 8 states comprising Montana, Idaho, Utah, Washington, Wyoming, Colorado, Arizona, and Nevada. The company was founded in 1955 and is headquartered in Kalispell, Montana.