Comparing Veritex Holdings (VBTX) & Bridge Bancorp (BDGE)

Veritex Holdings (NASDAQ: VBTX) and Bridge Bancorp (NASDAQ:BDGE) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Profitability

This table compares Veritex Holdings and Bridge Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veritex Holdings 21.85% 5.30% 0.90%
Bridge Bancorp 22.62% 8.61% 0.89%

Analyst Ratings

This is a summary of current ratings and recommmendations for Veritex Holdings and Bridge Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veritex Holdings 0 1 2 0 2.67
Bridge Bancorp 0 2 0 0 2.00

Veritex Holdings currently has a consensus price target of $31.83, indicating a potential upside of 21.32%. Bridge Bancorp has a consensus price target of $38.50, indicating a potential upside of 9.37%. Given Veritex Holdings’ stronger consensus rating and higher possible upside, research analysts plainly believe Veritex Holdings is more favorable than Bridge Bancorp.

Dividends

Bridge Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 2.6%. Veritex Holdings does not pay a dividend. Bridge Bancorp pays out 48.4% of its earnings in the form of a dividend.

Risk and Volatility

Veritex Holdings has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500. Comparatively, Bridge Bancorp has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Earnings and Valuation

This table compares Veritex Holdings and Bridge Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Veritex Holdings $53.10 million 11.19 $12.55 million $0.95 27.62
Bridge Bancorp $153.76 million 4.51 $35.49 million $1.90 18.53

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

Insider & Institutional Ownership

53.5% of Veritex Holdings shares are owned by institutional investors. Comparatively, 55.6% of Bridge Bancorp shares are owned by institutional investors. 6.9% of Veritex Holdings shares are owned by insiders. Comparatively, 5.3% of Bridge Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Veritex Holdings beats Bridge Bancorp on 9 of the 16 factors compared between the two stocks.

About Veritex Holdings

Veritex Holdings, Inc. is a bank holding company. The Company, through its subsidiary, Veritex Community Bank (the Bank), a Texas state chartered bank, provides relationship-driven commercial banking products and services tailored to meet the needs of small to medium-sized businesses and professionals. It operates through community banking segment. The Bank provides a range of banking services to individual and corporate customers, which include commercial and retail lending, and the acceptance of checking and savings deposits. It offers a suite of online banking solutions, including access to account balances, online transfers, online bill payment and electronic delivery of customer statements, as well as automated teller machines, and banking by telephone, mail and personal appointment. It also offers debit cards, direct deposit, cashier’s checks and letters of credit, as well as treasury management services, including wire transfer services and automated clearinghouse services.

About Bridge Bancorp

Bridge Bancorp, Inc. is a bank holding company for The Bridgehampton National Bank (the Bank). The Bank’s operations include its real estate investment trust subsidiary, Bridgehampton Community, Inc. (BCI), a financial title insurance subsidiary, Bridge Abstract LLC (Bridge Abstract), and an investment services subsidiary, Bridge Financial Services LLC (Bridge Financial Services). As of December 31, 2016, the Bank operated 40 branches in its primary market areas of Suffolk and Nassau Counties on Long Island and the New York City boroughs, including 38 in Suffolk and Nassau Counties, one in Bayside, Queens and one in Manhattan. The Bank engages in full service commercial and consumer banking business, including accepting time, savings and demand deposits from the consumers, businesses and local municipalities in its market area. The Bank also offers the Certificate of Deposit Account Registry Service (CDARS) and Insured Cash Sweep (ICS) programs.

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