Analyzing Bank of Marin Bancorp (NASDAQ:BMRC) and California BanCorp (NASDAQ:CALB)

Bank of Marin Bancorp (NASDAQ:BMRC) and California BanCorp (NASDAQ:CALB) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Profitability

This table compares Bank of Marin Bancorp and California BanCorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of Marin Bancorp	9.28%	4.09%	0.45%
California BanCorp	17.16%	10.90%	1.06%

Earnings & Valuation

This table compares Bank of Marin Bancorp and California BanCorp’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of Marin Bancorp	$144.48 million	2.52	$19.90 million	$0.83	26.93
California BanCorp	$114.08 million	1.81	$21.63 million	$2.37	10.27

California BanCorp has lower revenue, but higher earnings than Bank of Marin Bancorp. California BanCorp is trading at a lower price-to-earnings ratio than Bank of Marin Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Bank of Marin Bancorp and California BanCorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of Marin Bancorp	0	2	1	0	2.33
California BanCorp	0	0	4	0	3.00

Bank of Marin Bancorp currently has a consensus target price of $17.33, suggesting a potential downside of 22.45%. California BanCorp has a consensus target price of $26.25, suggesting a potential upside of 7.80%. Given California BanCorp’s stronger consensus rating and higher possible upside, analysts plainly believe California BanCorp is more favorable than Bank of Marin Bancorp.

Insider and Institutional Ownership

52.3% of Bank of Marin Bancorp shares are owned by institutional investors. Comparatively, 59.5% of California BanCorp shares are owned by institutional investors. 5.7% of Bank of Marin Bancorp shares are owned by insiders. Comparatively, 10.8% of California BanCorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Bank of Marin Bancorp has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, California BanCorp has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Summary

California BanCorp beats Bank of Marin Bancorp on 11 of the 14 factors compared between the two stocks.

About Bank of Marin Bancorp

Bank of Marin Bancorp operates as the holding company for Bank of Marin that provides a range of financial services primarily to small to medium-sized businesses, not-for-profit organizations, and commercial real estate investors in the United States. The company offers personal and business checking and savings accounts; and individual retirement, health savings, and demand deposit marketplace accounts, as well as time certificates of deposit, certificate of deposit account registry, and insured cash sweep services. It also provides commercial real estate, commercial and industrial, and consumer loans, as well as construction financing and home equity lines of credit. In addition, the company offers merchant and payroll services; commercial equipment leasing program; payment solutions; treasury management services; credit cards; and mobile deposit, remote deposit capture, automated clearing house, wire transfer, and image lockbox services. Further, it provides wealth management and trust services comprising customized investment portfolio management, financial planning, trust administration, estate settlement, and custody services, as well as 401(k) plan services; and automated teller machines, and telephone and digital banking services. The company was incorporated in 1989 and is headquartered in Novato, California.

About California BanCorp

California BanCorp operates as the bank holding company for California Bank of Commerce that provides commercial banking services to businesses and professionals in California. It accepts various deposit products, including commercial checking, savings, and money market accounts, as well as certificates of deposit. The company also offers asset-based lending loans; commercial letters of credit; construction and development loans; real estate loans, such as commercial real estate loans and other loans; small business administration (SBA) loans, including SBA 7(a) and SBA 504 loans; consumer loans, such as secured and unsecured installment loans, and revolving lines of credit; and commercial and industrial loans, including term loans, working capital, accounts receivable and inventory financing, and other business loans to the dental and veterinary industries, contractors, and emerging companies. In addition, it provides foreign exchange, treasury and cash management, and online and mobile banking services. California BanCorp was founded in 2007 and is headquartered in Oakland, California.