Bridge Capital Holdings (NASDAQ: BBNK) and Heritage Commerce Corp (NASDAQ:HTBK) are both financials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Bridge Capital Holdings and Heritage Commerce Corp’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%
Heritage Commerce Corp 25.75% 10.61% 1.07%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Bridge Capital Holdings and Heritage Commerce Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bridge Capital Holdings 0 0 0 0 N/A
Heritage Commerce Corp 0 1 1 0 2.50

Heritage Commerce Corp has a consensus price target of $15.50, suggesting a potential upside of 13.97%. Given Heritage Commerce Corp’s higher probable upside, analysts clearly believe Heritage Commerce Corp is more favorable than Bridge Capital Holdings.

Valuation & Earnings

This table compares Bridge Capital Holdings and Heritage Commerce Corp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bridge Capital Holdings N/A N/A N/A N/A N/A
Heritage Commerce Corp $104.01 million 4.99 $27.83 million $0.73 18.63

Heritage Commerce Corp has higher revenue and earnings than Bridge Capital Holdings.

Insider & Institutional Ownership

69.5% of Heritage Commerce Corp shares are held by institutional investors. 5.7% of Heritage Commerce Corp shares are held by company 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

Heritage Commerce Corp pays an annual dividend of $0.40 per share and has a dividend yield of 2.9%. Bridge Capital Holdings does not pay a dividend. Heritage Commerce Corp pays out 54.8% of its earnings in the form of a dividend.

Summary

Heritage Commerce Corp beats Bridge Capital Holdings on 9 of the 10 factors compared between the two stocks.

Bridge Capital Holdings Company Profile

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.

Heritage Commerce Corp Company Profile

Heritage Commerce Corp is a bank holding company. The Company, through its subsidiary Heritage Bank of Commerce (the Bank), provides a range of banking services. The Bank is a California state-chartered multi-community independent bank that offers a range of commercial banking services to small and medium-sized businesses and their owners, managers and employees. As of December 31, 2016, the Company operated through 11 service branch offices located in the southern and eastern regions of the general San Francisco Bay Area of California in the counties of Santa Clara, Alameda, Contra Costa and San Benito. The Company’s subsidiary, CSNK Working Capital Finance Corp., doing business as Bay View Funding, provides business-essential working capital factoring financing to various industries across the United States. As of December 31, 2016, the Bank operated automated teller machines (ATMs) at five different locations.

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