Analyzing Bay Commercial Bank (BCML) & Its Rivals

Bay Commercial Bank (NASDAQ:BCML) is one of 919 publicly-traded companies in the “Banks” industry, but how does it contrast to its competitors? We will compare Bay Commercial Bank to similar companies based on the strength of its earnings, analyst recommendations, profitability, dividends, valuation, institutional ownership and risk.

Volatility and Risk

Bay Commercial Bank has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Bay Commercial Bank’s competitors have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.

Profitability

This table compares Bay Commercial Bank and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bay Commercial Bank	6.53%	7.54%	0.98%
Bay Commercial Bank Competitors	15.65%	9.43%	0.93%

Valuation and Earnings

This table compares Bay Commercial Bank and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Bay Commercial Bank	$141.48 million	$23.93 million	37.21
Bay Commercial Bank Competitors	$9.95 billion	$2.42 billion	21.29

Bay Commercial Bank’s competitors have higher revenue and earnings than Bay Commercial Bank. Bay Commercial Bank is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

66.2% of Bay Commercial Bank shares are held by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are held by institutional investors. 2.9% of Bay Commercial Bank shares are held by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Bay Commercial Bank pays an annual dividend of $1.20 per share and has a dividend yield of 3.8%. Bay Commercial Bank pays out 142.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Banks” companies pay a dividend yield of 9.0% and pay out 28.9% of their earnings in the form of a dividend. Bay Commercial Bank has raised its dividend for 3 consecutive years. Bay Commercial Bank lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Bay Commercial Bank and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bay Commercial Bank	0	4	0	1	2.40
Bay Commercial Bank Competitors	7484	30232	27812	1478	2.35

Bay Commercial Bank currently has a consensus price target of $34.00, indicating a potential upside of 8.77%. As a group, “Banks” companies have a potential upside of 14.85%. Given Bay Commercial Bank’s competitors higher possible upside, analysts plainly believe Bay Commercial Bank has less favorable growth aspects than its competitors.

Summary

Bay Commercial Bank competitors beat Bay Commercial Bank on 10 of the 15 factors compared.

Bay Commercial Bank Company Profile

BayCom Corp operates as the bank holding company for United Business Bank that provides various financial services to small and mid-sized businesses, service professionals, and individuals. The company provides demand, savings, money market, and time deposit accounts. It offers commercial and multifamily real estate loans, including owner-occupied and investor real estate loans; commercial and industrial loans, such as equipment loans and working capital lines of credit; small business administration loans; construction and land loans; agriculture-related loans; and consumer loans comprising installment loans, unsecured and secured personal lines of credit, and overdraft protection. In addition, the company provides online and mobile banking, automated teller machine, remote deposit capture, night depository, courier, direct deposit, treasury management, wire transfer, automated clearing house, debit cards, cashier's and travelers checks, letters of credit, lockbox, positive pay, reverse positive pay, and account reconciliation services, as well as zero balance accounts and sweep accounts, including loan sweep. It operates through a network of full-service banking branches in Northern and Southern California; Las Vegas, Nevada; Denver, Colorado; Custer, Delta, and Grand counties, Colorado; and Seattle, Washington and Central New Mexico. The company was formerly known as Bay Commercial Bank and changed its name to BayCom Corp in January 2017. BayCom Corp was incorporated in 2004 and is headquartered in Walnut Creek, California.