Bridge Capital Holdings (NASDAQ: BBNK) and Two River Bancorp (NASDAQ:TRCB) are both small-cap commercial banks companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

22.9% of Two River Bancorp shares are held by institutional investors. 16.5% of Two River Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Two River Bancorp pays an annual dividend of $0.18 per share and has a dividend yield of 1.0%. Bridge Capital Holdings does not pay a dividend. Two River Bancorp pays out 17.9% of its earnings in the form of a dividend.

Profitability

This table compares Bridge Capital Holdings and Two River Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bridge Capital Holdings 16.16% 8.27% 0.85%
Two River Bancorp 20.45% 8.38% 0.89%

Volatility and Risk

Bridge Capital Holdings has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Two River Bancorp has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Earnings and Valuation

This table compares Bridge Capital Holdings and Two River Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Bridge Capital Holdings N/A N/A N/A $1.14 26.14
Two River Bancorp $40.11 million 3.81 $8.63 million $1.01 17.97

Two River Bancorp has higher revenue and earnings than Bridge Capital Holdings. Two River Bancorp is trading at a lower price-to-earnings ratio than Bridge Capital Holdings, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Bridge Capital Holdings and Two River Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bridge Capital Holdings 0 0 0 0 N/A
Two River Bancorp 0 0 0 0 N/A

Summary

Two River Bancorp beats Bridge Capital Holdings on 8 of the 10 factors compared between the two stocks.

About Bridge Capital Holdings

Bridge Capital Holdings is the bank holding company for Bridge Bank, National Association (the Bank). The Bank’s lending solutions include working capital lines of credit, structured finance (asset-based lending and factoring), 7(a) and 504 Small Business Administration (SBA) loans, commercial real estate loans, sustainable energy project financing, growth capital loans, equipment financing, letters of credit and commercial credit cards. The Bank’s depository and corporate banking services include cash and treasury management solutions, interest-bearing term deposit accounts, checking accounts, Automated Clearing House (ACH) payment and wire solutions, fraud protection, remote deposit capture, courier services and online banking. The Bank’s international banking services include foreign exchange (FX payments and hedging), letters of credit, and import and export financing. The Bank provides banking services to businesses located across the San Francisco Bay Area.

About Two River Bancorp

Two River Bancorp is the holding company for Two River Community Bank (the Bank). The Company acts as an independent community financial services provider. The Company’s segment is community banking operations. The Bank is a state-chartered commercial bank. The Bank offers a range of banking services, including demand, savings and time deposits, and commercial loans, residential loans and consumer/installment loans to small and medium-sized businesses, not-for-profit organizations, professionals and individuals primarily in Monmouth, Middlesex and Union Counties, New Jersey. The Bank also offers its customers various banking products, such as night depository, wire transfers, money orders, automated teller machines, direct deposit, telephone and Internet banking and corporate business services. It also offers customers a range of electronic banking services. The Bank’s deposits consist of checking accounts, savings accounts, money market accounts and certificates of deposit.

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