Bank of Marin Bancorp (NASDAQ:BMRC – Get Free Report) and First Business Financial Services (NASDAQ:FBIZ – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.
Profitability
This table compares Bank of Marin Bancorp and First Business Financial Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bank of Marin Bancorp | 26.43% | 9.39% | 0.93% |
| First Business Financial Services | 20.13% | 15.24% | 1.25% |
Valuation & Earnings
This table compares Bank of Marin Bancorp and First Business Financial Services’ gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bank of Marin Bancorp | $140.95 million | 2.47 | $46.59 million | $2.44 | 8.84 |
| First Business Financial Services | $150.80 million | 1.85 | $40.86 million | $4.46 | 7.52 |
Volatility & Risk
Bank of Marin Bancorp has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, First Business Financial Services has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Bank of Marin Bancorp and First Business Financial Services, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bank of Marin Bancorp | 0 | 2 | 2 | 0 | 2.50 |
| First Business Financial Services | 0 | 0 | 1 | 0 | 3.00 |
Bank of Marin Bancorp currently has a consensus target price of $26.80, indicating a potential upside of 24.25%. First Business Financial Services has a consensus target price of $35.50, indicating a potential upside of 5.84%. Given Bank of Marin Bancorp’s higher possible upside, analysts plainly believe Bank of Marin Bancorp is more favorable than First Business Financial Services.
Dividends
Bank of Marin Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 4.6%. First Business Financial Services pays an annual dividend of $0.91 per share and has a dividend yield of 2.7%. Bank of Marin Bancorp pays out 41.0% of its earnings in the form of a dividend. First Business Financial Services pays out 20.4% 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. Bank of Marin Bancorp has increased its dividend for 17 consecutive years and First Business Financial Services has increased its dividend for 11 consecutive years. Bank of Marin Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
56.1% of Bank of Marin Bancorp shares are owned by institutional investors. Comparatively, 64.4% of First Business Financial Services shares are owned by institutional investors. 5.1% of Bank of Marin Bancorp shares are owned by insiders. Comparatively, 6.3% of First Business Financial Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
First Business Financial Services beats Bank of Marin Bancorp on 9 of the 17 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 First Business Financial Services
First Business Financial Services, Inc. operates as the bank holding company for First Business Bank that provides commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals. It offers deposit products, such as non-interest-bearing transaction accounts, interest-bearing transaction accounts, money market accounts, time deposits, and certificates of deposit. The company also provides loan products, including commercial real estate loans, commercial and industrial loans, small business administration loans, and direct financing leases, as well as consumer and other loans comprising home equity, first and second mortgage, and other personal loans for professional and executive clients. It offers commercial lending, asset-based lending, equipment financing, accounts receivable financing, vendor financing, floorplan financing, treasury management services, and company retirement plans; trust and estate administration, financial planning, investment management, and private banking services; and investment portfolio administrative, asset-liability management, and asset-liability management process validation services for other financial institutions. The company was founded in 1909 and is headquartered in Madison, Wisconsin.
Receive News & Ratings for Bank of Marin Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bank of Marin Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.
