Head-To-Head Survey: First United (NASDAQ:FUNC) vs. BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP)

First United (NASDAQ:FUNC) and BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Institutional & Insider Ownership

33.3% of First United shares are owned by institutional investors. Comparatively, 36.0% of BCB Bancorp, Inc. (NJ) shares are owned by institutional investors. 7.9% of First United shares are owned by company insiders. Comparatively, 15.9% of BCB Bancorp, Inc. (NJ) shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares First United and BCB Bancorp, Inc. (NJ)”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First United	$111.40 million	2.17	$20.57 million	$3.65	10.21
BCB Bancorp, Inc. (NJ)	$196.95 million	0.78	$18.62 million	$0.19	46.79

First United has higher earnings, but lower revenue than BCB Bancorp, Inc. (NJ). First United is trading at a lower price-to-earnings ratio than BCB Bancorp, Inc. (NJ), indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

First United has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, BCB Bancorp, Inc. (NJ) has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for First United and BCB Bancorp, Inc. (NJ), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First United	0	0	1	0	3.00
BCB Bancorp, Inc. (NJ)	0	2	0	0	2.00

First United presently has a consensus price target of $42.00, indicating a potential upside of 12.66%. BCB Bancorp, Inc. (NJ) has a consensus price target of $9.50, indicating a potential upside of 6.86%. Given First United’s stronger consensus rating and higher probable upside, research analysts plainly believe First United is more favorable than BCB Bancorp, Inc. (NJ).

Dividends

First United pays an annual dividend of $0.88 per share and has a dividend yield of 2.4%. BCB Bancorp, Inc. (NJ) pays an annual dividend of $0.64 per share and has a dividend yield of 7.2%. First United pays out 24.1% of its earnings in the form of a dividend. BCB Bancorp, Inc. (NJ) pays out 336.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First United has raised its dividend for 6 consecutive years.

Profitability

This table compares First United and BCB Bancorp, Inc. (NJ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First United	20.53%	13.05%	1.21%
BCB Bancorp, Inc. (NJ)	2.72%	1.76%	0.15%

Summary

First United beats BCB Bancorp, Inc. (NJ) on 11 of the 17 factors compared between the two stocks.

About First United

First United Corporation operates as the bank holding company for First United Bank & Trust that provides various retail and commercial banking services to businesses and individuals. It offers various deposit products, which includes checking, savings, money market deposit, and regular and individual retirement accounts (IRAs), as well as certificates of deposit. The company loan portfolio includes commercial loans secured by real estate, commercial equipment, vehicles, or other assets of the borrower; commercial real estate loans for residential and commercial development, agricultural purpose properties, and service industry buildings, such as restaurants and motels, retail buildings, and general purpose business space; residential mortgage loans; home equity lines of credit; residential real estate construction loans; and indirect and direct auto loans, student loans, and other secured and unsecured lines of credit and term loans. It also offers access to multi-million-dollar certificates of deposit and the Intrafi cash service, including multi-million-dollar savings and demand deposits to municipalities, businesses, and consumers; and treasury management, cash sweep, and various checking services. In addition, the company provides trust services, which includes personal trust, investment agency accounts, charitable trusts, retirement accounts, including IRA roll-overs, 401(k) accounts and defined benefit plans, estate administration, and estate planning; and insurance products, brokerage services, and safe deposit and night depository facilities. First United Corporation was founded in 1900 and is headquartered in Oakland, Maryland.

About BCB Bancorp, Inc. (NJ)

BCB Bancorp, Inc. operates as a bank holding company for BCB Community Bank that engages in the provision of banking products and services to businesses and individuals in the United States. The company offers insured deposit products, including savings and club accounts, interest and non-interest-bearing demand accounts, money market accounts, certificates of deposit, and individual retirement accounts. It also provides various loan products, such as commercial and multi-family real estate loans, one-to-four family mortgage loans, commercial business loans, construction loans, home equity loans, and consumer loans. In addition, the company offers retail and commercial banking services comprising wire transfer, money order, safe deposit box, night depository, debit card, online and mobile banking, fraud detection, and automated teller services. The company was founded in 2000 and is based in Bayonne, New Jersey.