Sandy Spring Bancorp (NASDAQ: SASR) and RBB Bancorp (NASDAQ:RBB) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.
This table compares Sandy Spring Bancorp and RBB Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sandy Spring Bancorp||24.31%||10.61%||1.12%|
70.4% of Sandy Spring Bancorp shares are held by institutional investors. Comparatively, 23.8% of RBB Bancorp shares are held by institutional investors. 2.6% of Sandy Spring Bancorp shares 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.
This is a summary of current ratings and price targets for Sandy Spring Bancorp and RBB Bancorp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sandy Spring Bancorp||0||2||0||0||2.00|
Sandy Spring Bancorp presently has a consensus target price of $40.00, indicating a potential upside of 1.70%. RBB Bancorp has a consensus target price of $25.00, indicating a potential downside of 1.03%. Given Sandy Spring Bancorp’s higher possible upside, analysts plainly believe Sandy Spring Bancorp is more favorable than RBB Bancorp.
Earnings & Valuation
This table compares Sandy Spring Bancorp and RBB Bancorp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sandy Spring Bancorp||$221.60 million||4.26||$48.25 million||$2.41||16.32|
|RBB Bancorp||$77.15 million||5.17||$19.07 million||N/A||N/A|
Sandy Spring Bancorp has higher revenue and earnings than RBB Bancorp.
Sandy Spring Bancorp pays an annual dividend of $1.04 per share and has a dividend yield of 2.6%. RBB Bancorp pays an annual dividend of $0.08 per share and has a dividend yield of 0.3%. Sandy Spring Bancorp pays out 43.2% of its earnings in the form of a dividend.
Sandy Spring Bancorp beats RBB Bancorp on 9 of the 13 factors compared between the two stocks.
About Sandy Spring Bancorp
Sandy Spring Bancorp, Inc. is the bank holding company for Sandy Spring Bank (the Bank). The Company operates through three segments: Community Banking, Insurance and Investment Management. The Company’s Community Banking segment operates through Sandy Spring Bank and involves delivering a range of financial products and services, including various loan and deposit products to both individuals and businesses. The Insurance segment operates through Sandy Spring Insurance Corporation, a subsidiary of the Bank, and offers annuities as an alternative to traditional deposit accounts. The Investment Management segment operates through West Financial Services, Inc., a subsidiary of the Bank, which provides investment management and financial planning services. As of December 31, 2016, the Bank conducted commercial banking business through 44 community offices and six financial centers located in Central Maryland, Northern Virginia and Washington D.C.
About RBB Bancorp
RBB Bancorp (the Bank) is a bank holding company with the principal business to serve as the holding company for its wholly-owned banking subsidiaries, including Royal Business Bank (Bank) and RBB Asset Management Company (RAM). The Company operates Royal Business Bank, which is a California state-chartered commercial bank. The Bank is focused on providing commercial banking services. The Bank’s offerings include traditional commercial real estate loans, secured commercial and industrial loans, and trade finance services for companies doing business in China, Taiwan and other Asian countries. The non-qualified single-family residential mortgage loans, small business administration loans. As of March 31, 2017, the Company had total consolidated assets of $1.5 billion, total consolidated deposits of $1.2 billion and total consolidated shareholders equity of $183.5 million.
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