Central Valley Community Bancorp (NASDAQ:CVCY – Get Rating) and RBB Bancorp (NASDAQ:RBB – Get Rating) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.
Profitability
This table compares Central Valley Community Bancorp and RBB 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% | 16.06% | 1.14% |
| RBB Bancorp | 29.48% | 12.67% | 1.53% |
Institutional & Insider Ownership
46.2% of Central Valley Community Bancorp shares are owned by institutional investors. Comparatively, 36.6% of RBB Bancorp shares are owned by institutional investors. 15.9% of Central Valley Community Bancorp shares are owned by insiders. Comparatively, 13.2% of RBB Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility & Risk
Dividends
Central Valley Community Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 3.1%. RBB Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 5.2%. Central Valley Community Bancorp pays out 20.4% of its earnings in the form of a dividend. RBB Bancorp pays out 20.2% 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. RBB Bancorp has increased its dividend for 3 consecutive years. RBB Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Central Valley Community Bancorp and RBB Bancorp’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Central Valley Community Bancorp | $87.00 million | 2.11 | $26.65 million | $2.35 | 6.65 |
| RBB Bancorp | $192.22 million | 1.23 | $64.33 million | $3.17 | 3.91 |
RBB Bancorp has higher revenue and earnings than Central Valley Community Bancorp. RBB Bancorp is trading at a lower price-to-earnings ratio than Central Valley Community Bancorp, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Central Valley Community Bancorp and RBB Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Central Valley Community Bancorp | 0 | 0 | 1 | 0 | 3.00 |
| RBB Bancorp | 0 | 2 | 1 | 0 | 2.33 |
Central Valley Community Bancorp presently has a consensus price target of $20.00, indicating a potential upside of 28.04%. RBB Bancorp has a consensus price target of $21.50, indicating a potential upside of 73.25%. Given RBB Bancorp’s higher probable upside, analysts plainly believe RBB Bancorp is more favorable than Central Valley Community Bancorp.
Summary
RBB Bancorp beats Central Valley Community 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 RBB Bancorp
RBB Bancorp is a bank holding company, which engages in the provision of commercial banking services through its subsidiaries. Its services include remote deposit, e-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, SBA 7A and 504 loans, mortgage loans, trade finance, and a range of depository accounts. The company was founded in January 2011 and is headquartered in Los Angeles, CA.
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