Banc of California (NYSE:BANC) and Fidelity D & D Bancorp (NASDAQ:FDBC) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Dividends
Banc of California pays an annual dividend of $0.24 per share and has a dividend yield of 1.4%. Fidelity D & D Bancorp pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. Banc of California pays out 30.4% of its earnings in the form of a dividend. Banc of California has raised its dividend for 1 consecutive years and Fidelity D & D Bancorp has raised its dividend for 6 consecutive years. Fidelity D & D Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares Banc of California and Fidelity D & D Bancorp's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Banc of California | $403.23 million | 2.22 | $23.76 million | $0.79 | 22.38 |
Fidelity D & D Bancorp | $49.46 million | 5.61 | $11.58 million | N/A | N/A |
Banc of California has higher revenue and earnings than Fidelity D & D Bancorp.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Banc of California and Fidelity D & D Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Banc of California | 0 | 1 | 4 | 0 | 2.80 |
Fidelity D & D Bancorp | 0 | 0 | 0 | 0 | N/A |
Banc of California currently has a consensus price target of $21.30, suggesting a potential upside of 19.80%. Given Banc of California's higher probable upside, equities analysts plainly believe Banc of California is more favorable than Fidelity D & D Bancorp.
Institutional & Insider Ownership
87.4% of Banc of California shares are held by institutional investors. Comparatively, 14.0% of Fidelity D & D Bancorp shares are held by institutional investors. 10.9% of Banc of California shares are held by company insiders. Comparatively, 26.9% of Fidelity D & D 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.
Risk & Volatility
Banc of California has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, Fidelity D & D Bancorp has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500.
Profitability
This table compares Banc of California and Fidelity D & D Bancorp's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Banc of California | 1.62% | 3.88% | 0.34% |
Fidelity D & D Bancorp | 18.22% | 8.47% | 0.82% |
Summary
Fidelity D & D Bancorp beats Banc of California on 9 of the 15 factors compared between the two stocks.