Head-To-Head Survey: 1st Colonial Bancorp (OTCMKTS:FCOB) versus Banc of California (NYSE:BANC)

1st Colonial Bancorp (OTCMKTS:FCOB) and Banc of California (NYSE:BANC) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Risk and Volatility

1st Colonial Bancorp has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500. Comparatively, Banc of California has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500.

Profitability

This table compares 1st Colonial Bancorp and Banc of California’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
1st Colonial Bancorp	17.44%	11.13%	0.99%
Banc of California	7.06%	6.20%	0.53%

Earnings and Valuation

This table compares 1st Colonial Bancorp and Banc of California”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
1st Colonial Bancorp	$46.18 million	1.53	$8.06 million	$1.66	8.89
Banc of California	$990.55 million	2.32	$126.89 million	$0.65	22.22

Banc of California has higher revenue and earnings than 1st Colonial Bancorp. 1st Colonial Bancorp is trading at a lower price-to-earnings ratio than Banc of California, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for 1st Colonial Bancorp and Banc of California, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
1st Colonial Bancorp	0	0	0	0	0.00
Banc of California	0	4	7	0	2.64

Banc of California has a consensus target price of $17.09, suggesting a potential upside of 18.32%. Given Banc of California’s stronger consensus rating and higher probable upside, analysts clearly believe Banc of California is more favorable than 1st Colonial Bancorp.

Insider and Institutional Ownership

13.4% of 1st Colonial Bancorp shares are owned by institutional investors. Comparatively, 86.9% of Banc of California shares are owned by institutional investors. 2.7% of Banc of California shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Banc of California beats 1st Colonial Bancorp on 10 of the 14 factors compared between the two stocks.

About 1st Colonial Bancorp

1st Colonial Bancorp, Inc. operates as the bank holding company for 1st Colonial Community Bank that provides a range of business and consumer financial services in New Jersey. The company offers various deposit products, including savings accounts, money market accounts, certificates of deposit, club accounts, and business and personal checking accounts. It also provides home equity loans, home equity lines of credit, personal and vehicle loans, residential and commercial mortgages, construction loans, business lines of credit, equipment and vehicle financing, real estate loans, working capital line of credit, and business acquisition loans, as well as small business administration loans. In addition, the company offers cash management services comprising remote deposit capture, ACH/wire transfer, night deposit drop, and merchant services; safe deposit boxes; and coin counting, online and mobile banking, debit card, and ATM services. The company was founded in 2000 and is headquartered in Mount Laurel, New Jersey.

About Banc of California

Banc of California, Inc. operates as the bank holding company for Banc of California that provides various banking products and services in California. The company offers deposit products, such as checking, savings, money market, demand, and time deposits; certificates of deposit; retirement accounts; and safe deposit boxes. It also provides real estate loans to professional developers and real estate investors for the acquisition, construction, refinancing, renovation, and on-going operation of commercial real estate properties; commercial real estate mortgage, residential real estate mortgage, and real estate construction and land loans; commercial loans and leases, such as equipment finance, other asset-based, venture capital, secured business, warehouse, and other lending services; small business administration loans; and consumer loans comprising personal, auto, and other loans, as well as home equity and revolving lines of credit. In addition, the company offers international banking, multi-state deposit, and asset and investment management services, as well as cash and treasury management services; and online, mobile, remote deposit, and telephone banking services. It serves small and middle-market businesses, venture capital firms, non-profit organizations, business owners, entrepreneurs, professionals, and high-net worth individuals. Banc of California, Inc. was founded in 1941 and is headquartered in Los Angeles, California.