Head-To-Head Contrast: Coastal Financial (NASDAQ:CCB) versus Bank of Marin Bancorp (NASDAQ:BMRC)

Bank of Marin Bancorp (NASDAQ:BMRC) and Coastal Financial (NASDAQ:CCB) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bank of Marin Bancorp	-21.76%	6.00%	0.70%
Coastal Financial	7.11%	10.16%	1.05%

Analyst Recommendations

This is a summary of current ratings and target prices for Bank of Marin Bancorp and Coastal Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of Marin Bancorp	0	2	3	1	2.83
Coastal Financial	1	0	5	1	2.86

Bank of Marin Bancorp currently has a consensus target price of $30.10, suggesting a potential upside of 20.93%. Coastal Financial has a consensus target price of $128.00, suggesting a potential upside of 72.53%. Given Coastal Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Coastal Financial is more favorable than Bank of Marin Bancorp.

Risk and Volatility

Bank of Marin Bancorp has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Coastal Financial has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Insider & Institutional Ownership

52.3% of Bank of Marin Bancorp shares are owned by institutional investors. Comparatively, 59.2% of Coastal Financial shares are owned by institutional investors. 5.1% of Bank of Marin Bancorp shares are owned by insiders. Comparatively, 14.1% of Coastal Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Bank of Marin Bancorp and Coastal Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of Marin Bancorp	$163.98 million	2.44	-$35.67 million	($2.25)	-11.06
Coastal Financial	$661.22 million	1.70	$46.99 million	$3.04	24.40

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

Summary

Coastal Financial beats Bank of Marin Bancorp on 12 of the 14 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 Coastal Financial

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company also offers commercial and industrial loans, such as term loans, commercial lines of credit, capital call lines working capital loans, equipment financing, borrowing base loans, small business administration loans, and other loan products; owner and non-owner-occupied real estate loans, and multi-family residential loans; construction, land, and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as personal lines of credit, including overdraft protection. In addition, it provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services; and debit cards. Further, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as Banking as a Service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their customers banking services. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.