Bank of Marin Bancorp (NASDAQ:BMRC) vs. CPB (NYSE:CPF) Financial Analysis

Bank of Marin Bancorp (NASDAQ:BMRC) and CPB (NYSE:CPF) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Dividends

Bank of Marin Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 4.7%. CPB pays an annual dividend of $1.08 per share and has a dividend yield of 4.1%. Bank of Marin Bancorp pays out -250.0% of its earnings in the form of a dividend. CPB pays out 50.5% 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. CPB has increased its dividend for 1 consecutive years. Bank of Marin Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Bank of Marin Bancorp and CPB”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of Marin Bancorp	$119.91 million	2.88	-$8.41 million	($0.40)	-53.30
CPB	$344.82 million	2.04	$53.41 million	$2.14	12.17

CPB has higher revenue and earnings than Bank of Marin Bancorp. Bank of Marin Bancorp is trading at a lower price-to-earnings ratio than CPB, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Bank of Marin Bancorp and CPB, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of Marin Bancorp	0	0	3	0	3.00
CPB	0	0	0	0	0.00

Bank of Marin Bancorp currently has a consensus price target of $26.67, suggesting a potential upside of 25.08%. Given Bank of Marin Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Bank of Marin Bancorp is more favorable than CPB.

Volatility & Risk

Bank of Marin Bancorp has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, CPB has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Insider and Institutional Ownership

52.3% of Bank of Marin Bancorp shares are owned by institutional investors. Comparatively, 88.4% of CPB shares are owned by institutional investors. 5.1% of Bank of Marin Bancorp shares are owned by insiders. Comparatively, 2.4% of CPB shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Bank of Marin Bancorp and CPB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of Marin Bancorp	-4.20%	3.77%	0.44%
CPB	16.76%	12.65%	0.92%

Summary

CPB beats Bank of Marin Bancorp on 10 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 CPB

Central Pacific Financial Corp. operates as the bank holding company for Central Pacific Bank that provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products and services, including checking, savings and time deposits, cash management and digital banking, trust, and retail brokerage services, as well as money market accounts and certificates of deposit. The company also provides various lending activities, such as commercial, commercial and residential mortgage, home equity, and consumer loans; and other products and services comprising debit cards, internet and mobile banking, cash management services, full-service ATMs, safe deposit boxes, international banking services, night depository facilities, foreign exchange, and wire transfers. In addition, it offers wealth management products and services that include non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation, and planning services. The company was founded in 1954 and is headquartered in Honolulu, Hawaii.