Community Financial (NASDAQ:TCFC – Get Rating) and BayCom (NASDAQ:BCML – Get Rating) are both small cap finance companies, but which company is better? We’ll compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Profitability

This table compares the net margins, return on equity and return on assets of Community Financial and BayCom.

Net margins Return on equity return on assets
Community financial 33.51% 12.79% 1.13%
BayCom 22.74% 8.26% 0.92%

Institutional and insider ownership

37.8% of Community Financial shares are held by institutional investors. By comparison, 47.1% of BayCom’s shares are held by institutional investors. 8.0% of the shares of Community Financial are held by insiders of the company. By comparison, 7.6% of BayCom’s stock is held by company insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company is poised for long-term growth.

Dividends

Community Financial pays an annual dividend of $0.70 per share and has a dividend yield of 1.9%. BayCom pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Community Financial pays 15.6% of its profits as a dividend. BayCom pays 9.9% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Community Financial has increased its dividend for 1 consecutive year. Community Financial is clearly the best dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and benefits

This chart compares the gross revenue, earnings per share (EPS), and valuation of Community Financial and BayCom.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Community financial $78.46 million 2.67 $25.89 million $4.50 8.25
BayCom $92.88 million 3.33 $20.69 million $2.02 11.19

Community Financial has higher earnings, but lower earnings than BayCom. Community Financial trades at a lower price-to-earnings ratio than BayCom, indicating that it is currently the more affordable of the two stocks.

Volatility and risk

Community Financial has a beta of 0.81, suggesting its stock price is 19% less volatile than the S&P 500. Comparatively, BayCom has a beta of 0.73, suggesting its stock price is 27% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current price recommendations and targets for Community Financial and BayCom, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Community financial 0 1 0 0 2.00
BayCom 0 0 0 0 N / A

Community Financial currently has a consensus price target of $45.00, suggesting a potential upside of 21.26%. Given BayCom’s possible higher upside, analysts clearly think BayCom is more favorable than Community Financial.

Summary

Community Financial beats BayCom on 9 out of 15 factors compared between the two stocks.

About Community Financial (Get a rating)

The Community Financial Corporation operates as a bank holding company for the Community Bank of the Chesapeake which provides commercial and retail banking services to individuals and businesses. The company offers current, savings, money market and term accounts, as well as certificates of deposit; and commercial real estate and other non-residential real estate, residential first mortgage, residential rental mortgage, land construction and development, home equity and second mortgage, commercial, consumer and commercial equipment loans. It also provides safe deposit box, night deposit, safe deposit box, automated clearing house transaction, wire transfer, automated teller machine (ATM), online and telephone banking, banking services mobile devices for individuals and businesses, remote deposit capture, reciprocal deposit, merchant card, credit monitoring, investment, positive compensation, payroll, account reconciliation, bill payment, credit card and safe. As of December 31, 2021, it operated 11 full-service branches in Waldorf, Bryans Road, Dunkirk, Leonardtown, La Plata, Charlotte Hall, Prince Frederick, Lusby and California, Maryland, as well as Fredericksburg, Virginia; 4 loan production offices in La Plata, Prince Frederick and Leonardtown, Maryland, as well as Fredericksburg, Virginia; and 14 ATMs. The company was formerly known as Tri-County Financial Corporation and changed its name to The Community Financial Corporation in October 2013. The Community Financial Corporation was founded in 1950 and is headquartered in Waldorf, Maryland.

About BayCom (Get a rating)

Bay Com LogoBayCom Corp operates as a bank holding company for United Business Bank which provides various financial services to small and medium businesses, service professionals and individuals. The company offers current, savings, money market and term accounts. It also offers commercial and multi-family real estate loans, including home loans for homeowners and investors; 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 including installment loans, secured and unsecured personal lines of credit and overdraft protection. In addition, the Company offers online and mobile banking, ATMs, remote deposits, overnight deposits, couriers, direct deposits, cash management, wire transfers, room services automated clearing, debit cards, cashier’s and traveller’s checks, letters of credit, lockbox, positive payment, reverse positive payment and account reconciliation services, as well as zero balance accounts and transfer accounts, including including loan transfer. As of December 31, 2021, it operated through a network of 33 full-service bank branches in Northern and Southern California; 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.



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