Financial Analysis: Bay Banks of Virginia (OTCMKTS:BAYK) & Colony Bankcorp (NASDAQ:CBAN)

Colony Bankcorp (NASDAQ:CBAN) and Bay Banks of Virginia (OTCMKTS:BAYK) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Profitability

This table compares Colony Bankcorp and Bay Banks of Virginia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Colony Bankcorp	13.51%	9.64%	0.85%
Bay Banks of Virginia	N/A	N/A	N/A

Valuation and Earnings

This table compares Colony Bankcorp and Bay Banks of Virginia”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Colony Bankcorp	$126.05 million	2.53	$23.87 million	$1.59	11.51
Bay Banks of Virginia	$55.38 million	2.27	$7.06 million	N/A	N/A

Colony Bankcorp has higher revenue and earnings than Bay Banks of Virginia.

Analyst Recommendations

This is a summary of current recommendations and price targets for Colony Bankcorp and Bay Banks of Virginia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Colony Bankcorp	0	0	1	0	3.00
Bay Banks of Virginia	0	0	0	0	0.00

Colony Bankcorp presently has a consensus price target of $21.00, suggesting a potential upside of 14.75%. Given Colony Bankcorp’s stronger consensus rating and higher possible upside, analysts clearly believe Colony Bankcorp is more favorable than Bay Banks of Virginia.

Institutional & Insider Ownership

50.4% of Colony Bankcorp shares are owned by institutional investors. 6.6% of Colony Bankcorp shares are owned by company insiders. Comparatively, 7.6% of Bay Banks of Virginia shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Colony Bankcorp beats Bay Banks of Virginia on 10 of the 11 factors compared between the two stocks.

About Colony Bankcorp

Colony Bankcorp, Inc. operates as the bank holding company for Colony Bank that provides various banking products and services to commercial and consumer customers. The company offers deposit products, including demand, savings, and time deposits. It also provides loans to small and medium-sized businesses; residential and commercial construction, and land development loans; commercial real estate loans; commercial loans; agri-business and production loans; residential mortgage loans; home equity loans; and consumer loans. In addition, the company offers internet banking services, electronic bill payment services, safe deposit box rentals, telephone banking, credit and debit card services, and remote depository products, as well as access to a network of ATMs. The company was founded in 1975 and is headquartered in Fitzgerald, Georgia.

About Bay Banks of Virginia

Bay Banks of Virginia, Inc., through its subsidiaries, provides various banking products and services to businesses, professionals, and consumers in Virginia. The company accepts checking accounts, savings accounts, money market accounts, cash management accounts, certificates of deposit, and individual retirement accounts. Its loan products include commercial and industrial loans, such as small business loans, asset based loans, and other secured and unsecured loans and lines of credit; purchased loans; residential and commercial mortgages; home equity loans; consumer installment loans; and consumer loans comprising automobile and boat financing, home improvement loans, and unsecured personal loans. The company also provides credit cards; and insurance, online banking, telephone banking, mobile banking, analysis checking, cash management deposit, wire, direct deposit payroll, lockbox, positive pay, and remote deposit services, as well as a line of commercial lending options. In addition, it offers management services, including estate planning and settlement, as well as trust administration, investment, and wealth management services; and revocable and irrevocable living trusts, testamentary trusts, custodial accounts, investment planning, brokerage services, investment managed accounts, and managed and self-directed rollover individual retirement accounts for personal and corporate trusts. As of March 9, 2020, the company operated 17 banking offices located throughout greater Richmond region, the Northern Neck region, Middlesex County, and the Hampton Roads region. Bay Banks of Virginia, Inc. was founded in 1930 and is headquartered in Richmond, Virginia.