Head-To-Head Review: RBB Bancorp (NASDAQ:RBB) and TriCo Bancshares (NASDAQ:TCBK)

TriCo Bancshares (NASDAQ:TCBK) and RBB Bancorp (NASDAQ:RBB) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.

Volatility and Risk

TriCo Bancshares has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, RBB Bancorp has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for TriCo Bancshares and RBB Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TriCo Bancshares	0	4	3	0	2.43
RBB Bancorp	0	4	0	1	2.40

TriCo Bancshares currently has a consensus target price of $47.80, suggesting a potential upside of 10.49%. RBB Bancorp has a consensus target price of $22.33, suggesting a potential upside of 15.12%. Given RBB Bancorp’s higher possible upside, analysts plainly believe RBB Bancorp is more favorable than TriCo Bancshares.

Dividends

TriCo Bancshares pays an annual dividend of $1.44 per share and has a dividend yield of 3.3%. RBB Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 3.3%. TriCo Bancshares pays out 40.4% of its earnings in the form of a dividend. RBB Bancorp pays out 43.0% 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. TriCo Bancshares has raised its dividend for 12 consecutive years. TriCo Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares TriCo Bancshares and RBB Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TriCo Bancshares	21.87%	9.37%	1.19%
RBB Bancorp	11.12%	5.11%	0.65%

Valuation & Earnings

This table compares TriCo Bancshares and RBB Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TriCo Bancshares	$531.04 million	2.65	$114.87 million	$3.56	12.15
RBB Bancorp	$232.00 million	1.44	$26.67 million	$1.49	13.02

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

Insider and Institutional Ownership

59.1% of TriCo Bancshares shares are owned by institutional investors. Comparatively, 40.1% of RBB Bancorp shares are owned by institutional investors. 4.8% of TriCo Bancshares shares are owned by insiders. Comparatively, 4.6% of RBB Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

TriCo Bancshares beats RBB Bancorp on 14 of the 18 factors compared between the two stocks.

About TriCo Bancshares

TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to individual and corporate customers. The company accepts demand, savings, and time deposits. It also provides small business loans; real estate mortgage loans, such as residential and commercial loans; consumer loans; mortgage, auto, other vehicle, and personal loans; commercial loans, including agricultural loans; and real estate construction loans. In addition, the company offers treasury management services; credit and debit cards; and other customary banking services, including safe deposit boxes; and independent financial and broker-dealer services. Further, it provides checking, saving, and money market accounts, as well as individual retirement accounts; equipment financing; certificate of deposit account registry service; certificated of deposit; and IntraFi cash service. TriCo Bancshares was founded in 1975 and is headquartered in Chico, California.

About RBB Bancorp

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American, Korean-American, and other Asian-American communities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company also offers commercial and industrial lines of credit, term loans, mortgage warehouse lines, and international trade discounts; commercial real estate loans; residential, commercial, and land acquisition and development construction loans; small business administration loans; and single-family residential mortgage loans. In addition, it provides international letters of credit, SWIFT, export advisory, trade finance discount, and foreign exchange services; and remote deposit, e-banking, and mobile banking services. The company serves individuals, businesses, municipalities, and other entities. It operates branches in the Western region with branches in Los Angeles County, California; Orange County, California; Ventura County, California; Clark County, Nevada; Honolulu, Hawaii, as well as in Eastern region with branches in Manhattan, Brooklyn and Queens, New York; Chicago, Illinois; and Edison, New Jersey. RBB Bancorp was founded in 2008 and is headquartered in Los Angeles, California.