Head to Head Analysis: First National Bank Alaska (OTCMKTS:FBAK) vs. Bay Commercial Bank (NASDAQ:BCML)

First National Bank Alaska (OTCMKTS:FBAK) and Bay Commercial Bank (NASDAQ:BCML) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Volatility & Risk

First National Bank Alaska has a beta of 0.21, meaning that its share price is 79% less volatile than the S&P 500. Comparatively, Bay Commercial Bank has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.

Dividends

First National Bank Alaska pays an annual dividend of $16.00 per share and has a dividend yield of 5.2%. Bay Commercial Bank pays an annual dividend of $1.20 per share and has a dividend yield of 3.9%. First National Bank Alaska pays out 65.4% of its earnings in the form of a dividend. Bay Commercial Bank pays out 55.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bay Commercial Bank has increased its dividend for 3 consecutive years.

Valuation and Earnings

This table compares First National Bank Alaska and Bay Commercial Bank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First National Bank Alaska	$265.67 million	N/A	$77.54 million	$24.48	12.51
Bay Commercial Bank	$141.48 million	2.35	$23.93 million	$2.18	13.96

First National Bank Alaska has higher revenue and earnings than Bay Commercial Bank. First National Bank Alaska is trading at a lower price-to-earnings ratio than Bay Commercial Bank, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

66.2% of Bay Commercial Bank shares are owned by institutional investors. 6.5% of Bay Commercial Bank shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares First National Bank Alaska and Bay Commercial Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First National Bank Alaska	29.19%	14.98%	1.55%
Bay Commercial Bank	16.92%	7.22%	0.92%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for First National Bank Alaska and Bay Commercial Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First National Bank Alaska	0	0	0	0	0.00
Bay Commercial Bank	0	0	2	1	3.33

Bay Commercial Bank has a consensus price target of $34.00, indicating a potential upside of 11.70%. Given Bay Commercial Bank’s stronger consensus rating and higher probable upside, analysts plainly believe Bay Commercial Bank is more favorable than First National Bank Alaska.

Summary

Bay Commercial Bank beats First National Bank Alaska on 10 of the 17 factors compared between the two stocks.

About First National Bank Alaska

First National Bank Alaska, a commercial bank, provides various banking products and services for business, industry, and individual customers primarily in Alaska. The company offers savings and checking accounts; money market deposits; safe deposit services; certificates of deposit; individual retirement accounts; and personal, home equity, and construction loans, as well as loans for stability and growth. It also provides investment, treasury, trust, and wealth management services; and escrow and contract collection, and bankcard services. In addition, the company offers debit and credit cards, online and mobile banking, fraud prevention, and convenience banking services. First National Bank Alaska was founded in 1922 and is headquartered in Anchorage, Alaska.

About Bay Commercial Bank

BayCom Corp operates as the bank holding company for United Business Bank that provides various financial services to small and mid-sized businesses, service professionals, and individuals. The company provides demand, savings, money market, and time deposit accounts. It offers commercial and multifamily real estate loans, including owner-occupied and investor real estate loans; commercial and industrial loans, such as equipment loans and working capital lines of credit; small business administration loans; construction and land loans; agriculture-related loans; and consumer loans comprising installment loans, unsecured and secured personal lines of credit, and overdraft protection. In addition, the company provides online and mobile banking, automated teller machine, remote deposit capture, night depository, courier, direct deposit, treasury management, wire transfer, automated clearing house, debit cards, cashier's and travelers checks, letters of credit, lockbox, positive pay, reverse positive pay, and account reconciliation services, as well as zero balance accounts and sweep accounts, including loan sweep. It operates through a network of full-service banking branches in Northern and Southern California; Las Vegas, Nevada; Denver, Colorado; Custer, Delta, and Grand counties, Colorado; and Seattle, Washington and Central New Mexico. The company was formerly known as Bay Commercial Bank and changed its name to BayCom Corp in January 2017. BayCom Corp was incorporated in 2004 and is headquartered in Walnut Creek, California.