Head-To-Head Survey: Coastal Financial (NASDAQ:CCB) versus BEO Bancorp (OTCMKTS:BEOB)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BEO Bancorp	N/A	16.83%	1.69%
Coastal Financial	7.11%	10.01%	1.04%

Earnings and Valuation

This table compares BEO 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
BEO Bancorp	$59.32 million	2.24	$16.19 million	$13.26	8.28
Coastal Financial	$661.22 million	1.92	$46.99 million	$3.04	27.40

Coastal Financial has higher revenue and earnings than BEO Bancorp. BEO 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for BEO Bancorp and Coastal Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BEO Bancorp	0	0	0	0	0.00
Coastal Financial	0	2	2	2	3.00

Coastal Financial has a consensus price target of $133.60, suggesting a potential upside of 60.40%. Given Coastal Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Coastal Financial is more favorable than BEO Bancorp.

Institutional & Insider Ownership

59.2% of Coastal Financial shares are held by institutional investors. 14.1% of Coastal Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

BEO Bancorp has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500. Comparatively, Coastal Financial has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Summary

Coastal Financial beats BEO Bancorp on 11 of the 15 factors compared between the two stocks.

About BEO Bancorp

BEO Bancorp operates as the bank holding company for Bank of Eastern Oregon that provides commercial and consumer financing, banking and mortgage lending, and other services in Northeastern Oregon and Southeastern Washington. The company offers checking, money market, time deposits, and savings accounts; and certificates of deposit. It also provides commercial, agricultural, real estate, installment, credit card, mortgage, term, home, construction, farm, and refinancing loans; lines of credit; home enhancement loan programs; Internet banking and bill payment services; business sweep and banking services; and automated teller machines and safe deposit facilities, as well as originates and sells mortgage loans into the secondary market. The company was founded in 1945 and is based in Heppner, Oregon.

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.