Central Valley Community Bancorp (NASDAQ:CVCY – Get Rating) and Enterprise Bancorp (NASDAQ:EBTC – Get Rating) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.
Dividends
Central Valley Community Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 3.6%. Enterprise Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 3.3%. Central Valley Community Bancorp pays out 20.4% of its earnings in the form of a dividend. Enterprise Bancorp pays out 26.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Enterprise Bancorp has raised its dividend for 17 consecutive years. Central Valley Community Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
Central Valley Community Bancorp has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Enterprise Bancorp has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Central Valley Community Bancorp | $88.04 million | 1.80 | $26.65 million | $2.35 | 5.73 |
| Enterprise Bancorp | $179.38 million | 1.88 | $42.72 million | $3.54 | 7.84 |
Enterprise Bancorp has higher revenue and earnings than Central Valley Community Bancorp. Central Valley Community Bancorp is trading at a lower price-to-earnings ratio than Enterprise Bancorp, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
46.2% of Central Valley Community Bancorp shares are held by institutional investors. Comparatively, 25.5% of Enterprise Bancorp shares are held by institutional investors. 15.9% of Central Valley Community Bancorp shares are held by company insiders. Comparatively, 15.7% of Enterprise Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Central Valley Community Bancorp and Enterprise Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Central Valley Community Bancorp | 29.45% | 16.40% | 1.15% |
| Enterprise Bancorp | 22.75% | 15.44% | 0.97% |
Analyst Recommendations
This is a summary of recent recommendations for Central Valley Community Bancorp and Enterprise Bancorp, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Central Valley Community Bancorp | 0 | 0 | 1 | 0 | 3.00 |
| Enterprise Bancorp | 0 | 0 | 0 | 0 | N/A |
Central Valley Community Bancorp currently has a consensus price target of $20.00, indicating a potential upside of 48.59%. Given Central Valley Community Bancorp’s higher probable upside, equities analysts clearly believe Central Valley Community Bancorp is more favorable than Enterprise Bancorp.
Summary
Central Valley Community Bancorp beats Enterprise Bancorp on 10 of the 16 factors compared between the two stocks.
About Central Valley Community Bancorp
Central Valley Community Bancorp is a bank holding company, which engages in the provision of business and personal banking, and wealth management services. It operates through the following portfolio: commercial, real estate, and consumer. The commercial portfolio includes commercial and industrial loans, and agricultural production. The real estate portfolio consists of owner-occupied commercial real estate, land and construction loans, agricultural, investor commercial real estate loans, and others. The consumer portfolio covers equity loans and lines of credit, and installment and other consumer loans. The company was founded in 1979 and is headquartered in Fresno, CA.
About Enterprise Bancorp
Enterprise Bancorp, Inc. is a bank holding company, which engages in the provision of financial services through its subsidiary, Enterprise Bank. It offers personal and business banking which consists of business and personal checking accounts, personal and business savings accounts, mortgages loans, personal loans, and cash management solutions. The company was founded by George L. Duncan in 1996 and is headquartered in Lowell, MA.
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