Parke Bancorp (NASDAQ:PKBK) vs. 1st Colonial Bancorp (OTCMKTS:FCOB) Critical Survey

1st Colonial Bancorp (OTCMKTS:FCOB) and Parke Bancorp (NASDAQ:PKBK) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Insider & Institutional Ownership

13.4% of 1st Colonial Bancorp shares are held by institutional investors. Comparatively, 49.7% of Parke Bancorp shares are held by institutional investors. 13.0% of Parke Bancorp shares are held 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.

Analyst Ratings

This is a summary of current ratings and target prices for 1st Colonial Bancorp and Parke Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
1st Colonial Bancorp	0	0	0	0	0.00
Parke Bancorp	0	0	1	0	3.00

Profitability

This table compares 1st Colonial Bancorp and Parke Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
1st Colonial Bancorp	14.71%	10.87%	1.04%
Parke Bancorp	28.04%	13.20%	1.90%

Volatility and Risk

1st Colonial Bancorp has a beta of 0.03, indicating that its stock price is 97% less volatile than the S&P 500. Comparatively, Parke Bancorp has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.

Earnings and Valuation

This table compares 1st Colonial Bancorp and Parke Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
1st Colonial Bancorp	$49.61 million	2.04	$7.30 million	$1.48	13.51
Parke Bancorp	$146.08 million	2.44	$37.78 million	$3.16	9.63

Parke Bancorp has higher revenue and earnings than 1st Colonial Bancorp. Parke Bancorp is trading at a lower price-to-earnings ratio than 1st Colonial Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Parke Bancorp beats 1st Colonial Bancorp on 12 of the 13 factors compared between the two stocks.

About 1st Colonial Bancorp

1st Colonial Bancorp, Inc. operates as the bank holding company for 1st Colonial Community Bank that provides a range of business and consumer financial services in New Jersey. The company offers various deposit products, including savings accounts, money market accounts, certificates of deposit, club accounts, and business and personal checking accounts. It also provides home equity loans, home equity lines of credit, personal and vehicle loans, residential and commercial mortgages, construction loans, business lines of credit, equipment and vehicle financing, real estate loans, working capital line of credit, and business acquisition loans, as well as small business administration loans. In addition, the company offers cash management services comprising remote deposit capture, ACH/wire transfer, night deposit drop, and merchant services; safe deposit boxes; and coin counting, online and mobile banking, debit card, and ATM services. The company was founded in 2000 and is headquartered in Mount Laurel, New Jersey.

About Parke Bancorp

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.