Dime Community Bancshares (NASDAQ: DCOM) and BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.

Insider & Institutional Ownership

68.0% of Dime Community Bancshares shares are owned by institutional investors. Comparatively, 18.0% of BCB Bancorp, Inc. (NJ) shares are owned by institutional investors. 12.7% of Dime Community Bancshares shares are owned by insiders. Comparatively, 16.8% of BCB Bancorp, Inc. (NJ) shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Dime Community Bancshares and BCB Bancorp, Inc. (NJ)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Dime Community Bancshares $153.49 million 5.39 $34.82 million $0.93 23.76
BCB Bancorp, Inc. (NJ) $63.65 million 2.52 $9.72 million $0.86 16.51

Dime Community Bancshares has higher revenue and earnings than BCB Bancorp, Inc. (NJ). BCB Bancorp, Inc. (NJ) is trading at a lower price-to-earnings ratio than Dime Community Bancshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Dime Community Bancshares and BCB Bancorp, Inc. (NJ)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dime Community Bancshares 16.23% 8.04% 0.76%
BCB Bancorp, Inc. (NJ) 12.89% 8.85% 0.59%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Dime Community Bancshares and BCB Bancorp, Inc. (NJ), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dime Community Bancshares 1 1 1 0 2.00
BCB Bancorp, Inc. (NJ) 0 0 2 0 3.00

Dime Community Bancshares currently has a consensus price target of $21.83, indicating a potential downside of 1.21%. BCB Bancorp, Inc. (NJ) has a consensus price target of $14.50, indicating a potential upside of 2.11%. Given BCB Bancorp, Inc. (NJ)’s stronger consensus rating and higher possible upside, analysts clearly believe BCB Bancorp, Inc. (NJ) is more favorable than Dime Community Bancshares.

Dividends

Dime Community Bancshares pays an annual dividend of $0.56 per share and has a dividend yield of 2.5%. BCB Bancorp, Inc. (NJ) pays an annual dividend of $0.56 per share and has a dividend yield of 3.9%. Dime Community Bancshares pays out 60.2% of its earnings in the form of a dividend. BCB Bancorp, Inc. (NJ) pays out 65.1% 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.

Risk and Volatility

Dime Community Bancshares has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, BCB Bancorp, Inc. (NJ) has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.

Summary

Dime Community Bancshares beats BCB Bancorp, Inc. (NJ) on 10 of the 16 factors compared between the two stocks.

About Dime Community Bancshares

Dime Community Bancshares, Inc. operates as a holding company for Dime Community Bank (the Bank), a chartered savings bank. The Company is a unitary savings and loan holding company. The Company operates through Community Banking segment. The Bank’s principal business is gathering retail deposits, and lending them primarily in multifamily residential, commercial real estate and mixed use loans, as well as investing in mortgage-backed securities (MBS), obligations of the United States Government and Government Sponsored Entities (GSEs), and corporate debt and equity securities. The Bank’s primary sources of funds are, in general, deposits; loan amortization, prepayments and maturities; MBS amortization, prepayments and maturities; investment securities maturities and sales, and advances from the Federal Home Loan Bank of New York (FHLBNY).

About BCB Bancorp, Inc. (NJ)

BCB Bancorp, Inc. is the holding company parent of BCB Community Bank (the Bank). The Bank is a community-oriented financial institution. Its business is to offer Federal Deposit Insurance Corporation (FDIC)-insured deposit products and to invest funds held in deposit accounts at the Bank, together with funds generated from operations, in loans and investment securities. It offers loans, including commercial and multi-family real estate loans, one- to four-family mortgage loans, home equity loans, construction loans, consumer loans and commercial business loans; FDIC-insured deposit products, such as savings and club accounts, interest and non-interest bearing demand accounts, money market accounts, certificates of deposit and individual retirement accounts, and retail and commercial banking services, including wire transfers, money orders, safe deposit boxes, a night depository, debit cards, online banking, gift cards, fraud detection and automated teller services.

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