Avidia Bancorp (NYSE:AVBC) & John Marshall Bancorp (NASDAQ:JMSB) Financial Comparison

Avidia Bancorp (NYSE:AVBC) and John Marshall Bancorp (NASDAQ:JMSB) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Earnings and Valuation

This table compares Avidia Bancorp and John Marshall Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avidia Bancorp	$147.61 million	3.05	-$3.29 million	$0.95	23.71
John Marshall Bancorp	$115.33 million	2.83	$21.23 million	$1.73	13.38

John Marshall Bancorp has lower revenue, but higher earnings than Avidia Bancorp. John Marshall Bancorp is trading at a lower price-to-earnings ratio than Avidia Bancorp, 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 Avidia Bancorp and John Marshall Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avidia Bancorp	1	0	0	1	2.50
John Marshall Bancorp	0	1	2	1	3.00

John Marshall Bancorp has a consensus target price of $25.00, suggesting a potential upside of 7.99%. Given John Marshall Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe John Marshall Bancorp is more favorable than Avidia Bancorp.

Institutional & Insider Ownership

39.1% of John Marshall Bancorp shares are held by institutional investors. 3.4% of Avidia Bancorp shares are held by company insiders. Comparatively, 12.6% of John Marshall Bancorp shares are held by company 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.

Profitability

This table compares Avidia Bancorp and John Marshall Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avidia Bancorp	11.51%	4.62%	0.63%
John Marshall Bancorp	20.41%	9.16%	1.04%

Dividends

Avidia Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. John Marshall Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Avidia Bancorp pays out 25.3% of its earnings in the form of a dividend. John Marshall Bancorp pays out 23.1% 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. John Marshall Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

John Marshall Bancorp beats Avidia Bancorp on 12 of the 15 factors compared between the two stocks.

About Avidia Bancorp

Avidia Bancorp Inc. is a chartered stock savings bank. It operates full-service banking offices principally in western Middlesex County and eastern Worcester County, in Massachusetts. Avidia Bancorp Inc. is based in HUDSON, Mass.

About John Marshall Bancorp

John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. The Bank is headquartered in Reston, Virginia with eight full-service branches located in Alexandria, Arlington, Loudoun, Prince William, Reston, and Tysons, Virginia, as well as Rockville, Maryland, and Washington, D.C. The Bank is dedicated to providing exceptional value, personalized service and convenience to local businesses and professionals in the Washington, D.C. Metropolitan area. The Bank offers a comprehensive line of sophisticated banking products and services that rival those of the largest banks along with experienced staff to help achieve customers’ financial goals. Dedicated relationship managers serve as direct points-of-contact, providing subject matter expertise in a variety of niche industries including charter and private schools, government contractors, health services, nonprofits and associations, professional services, property management companies and title companies