Analyzing Community Financial (NASDAQ:TCFC) and BayCom (NASDAQ:BCML)

Community Financial (NASDAQ:TCFCGet Rating) and BayCom (NASDAQ:BCMLGet Rating) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares Community Financial and BayCom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Community Financial 33.51% 12.79% 1.13%
BayCom 22.74% 8.26% 0.92%

Institutional & Insider Ownership

37.8% of Community Financial shares are owned by institutional investors. Comparatively, 47.1% of BayCom shares are owned by institutional investors. 8.0% of Community Financial shares are owned by company insiders. Comparatively, 7.6% of BayCom shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Community Financial pays an annual dividend of $0.70 per share and has a dividend yield of 1.9%. BayCom pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Community Financial pays out 15.6% of its earnings in the form of a dividend. BayCom pays out 9.9% 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. Community Financial has increased its dividend for 1 consecutive years. Community Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Community Financial and BayCom’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Community Financial $78.46 million 2.67 $25.89 million $4.50 8.25
BayCom $92.88 million 3.33 $20.69 million $2.02 11.19

Community Financial has higher earnings, but lower revenue than BayCom. Community Financial is trading at a lower price-to-earnings ratio than BayCom, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Community Financial has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, BayCom has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Community Financial and BayCom, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Community Financial 0 1 0 0 2.00
BayCom 0 0 0 0 N/A

Community Financial presently has a consensus price target of $45.00, suggesting a potential upside of 21.26%. Given BayCom’s higher possible upside, analysts plainly believe BayCom is more favorable than Community Financial.

Summary

Community Financial beats BayCom on 9 of the 15 factors compared between the two stocks.

About Community Financial (Get Rating)

The Community Financial Corporation operates as the bank holding company for Community Bank of the Chesapeake that provides commercial and retail banking services to individuals and businesses. The company offers demand, savings, money market, and time deposit accounts, as well as certificates of deposit; and commercial real estate and other non-residential real estate, residential first mortgage, residential rental mortgage, construction and land development, home equity and second mortgage, commercial, consumer, and commercial equipment loans. It also provides safe deposit box, night depository, cash vault, automated clearinghouse transaction, wire transfer, automated teller machine (ATM), online and telephone banking, retail and business mobile banking, remote deposit capture, reciprocal deposit, merchant card, credit monitoring, investment, positive pay, payroll, account reconciliation, bill pay, credit card, and lockbox services. As of December 31, 2021, it operated 11 full services branches in Waldorf, Bryans Road, Dunkirk, Leonardtown, La Plata, Charlotte Hall, Prince Frederick, Lusby, and California, Maryland, as well as Fredericksburg, Virginia; 4 loan production offices in La Plata, Prince Frederick, and Leonardtown, Maryland, as well as Fredericksburg, Virginia; and 14 ATMs. The company was formerly known as Tri-County Financial Corporation and changed its name to The Community Financial Corporation in October 2013. The Community Financial Corporation was founded in 1950 and is headquartered in Waldorf, Maryland.

About BayCom (Get Rating)

BayCom Corp operates as the bank holding company for United Business Bank that provides various financial services to small and mid-sized businesses, service professionals, and individuals. The company offers demand, savings, money market, and time deposit accounts. It also provides commercial and multifamily real estate loans, including owner-occupied and investor real estate loans; commercial and industrial loans, such as equipment loans and working capital lines of credit; small business administration loans; construction and land loans; agriculture-related loans; and consumer loans comprising installment loans, unsecured and secured personal lines of credit, and overdraft protection. In addition, the company offers online and mobile banking, automated teller machine, remote deposit capture, night depository, courier, direct deposit, treasury management, wire transfer, automated clearing house services, debit cards, cashier's and travelers checks, letters of credit, lockbox, positive pay, reverse positive pay, and account reconciliation services, as well as zero balance accounts and sweep accounts, including loan sweep. As of December 31, 2021, it operated through a network of 33 full-service banking branches in Northern and Southern California; Denver, Colorado; Custer, Delta, and Grand counties, Colorado; and Seattle, Washington and Central New Mexico. The company was formerly known as Bay Commercial Bank and changed its name to BayCom Corp in January 2017. BayCom Corp was incorporated in 2004 and is headquartered in Walnut Creek, California.

Receive News & Ratings for Community Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Community Financial and related companies with MarketBeat.com's FREE daily email newsletter.