Contrasting Capital Bancorp (NASDAQ:CBNK) & BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP)

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

Dividends

BCB Bancorp, Inc. (NJ) pays an annual dividend of $0.64 per share and has a dividend yield of 7.6%. Capital Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 1.6%. BCB Bancorp, Inc. (NJ) pays out 1,280.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Capital Bancorp pays out 16.3% of its earnings in the form of a dividend. Capital Bancorp has raised its dividend for 3 consecutive years.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BCB Bancorp, Inc. (NJ)	$196.95 million	0.73	$18.62 million	$0.05	167.40
Capital Bancorp	$244.71 million	2.00	$30.97 million	$2.94	10.09

Capital Bancorp has higher revenue and earnings than BCB Bancorp, Inc. (NJ). Capital Bancorp 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BCB Bancorp, Inc. (NJ)	1.50%	0.95%	0.08%
Capital Bancorp	16.41%	15.13%	1.70%

Risk and Volatility

BCB Bancorp, Inc. (NJ) has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Capital Bancorp has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for BCB Bancorp, Inc. (NJ) and Capital Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BCB Bancorp, Inc. (NJ)	1	3	0	0	1.75
Capital Bancorp	1	2	2	0	2.20

BCB Bancorp, Inc. (NJ) presently has a consensus target price of $9.25, indicating a potential upside of 10.51%. Capital Bancorp has a consensus target price of $34.33, indicating a potential upside of 15.76%. Given Capital Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Capital Bancorp is more favorable than BCB Bancorp, Inc. (NJ).

Insider & Institutional Ownership

36.0% of BCB Bancorp, Inc. (NJ) shares are owned by institutional investors. Comparatively, 56.1% of Capital Bancorp shares are owned by institutional investors. 15.9% of BCB Bancorp, Inc. (NJ) shares are owned by insiders. Comparatively, 31.6% of Capital Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Capital Bancorp beats BCB Bancorp, Inc. (NJ) on 14 of the 17 factors compared between the two stocks.

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.

About Capital Bancorp

Capital Bancorp, Inc. operates as the bank holding company for Capital Bank, N.A. that provides various banking products and services to businesses, not-for-profit associations, and entrepreneurs in Maryland, Virginia, and the District of Columbia. It operates through Commercial Banking, Capital Bank Home Loans, and OpenSky segments. The company offers a range of deposit products, including checking and savings, time, interest bearing and noninterest-bearing demand, and money market accounts, as well as certificates of deposit; and credit cards. It also originates residential mortgages; issues trust preferred securities; and provides residential and commercial real estate, construction, and commercial and industrial loans, as well as other consumer loans, such as term loans, car loans, and boat loans to small to medium-sized businesses, professionals, real estate investors, and small residential builders and individuals. Capital Bancorp, Inc. was founded in 1974 and is headquartered in Rockville, Maryland.