Bank of Marin Bancorp (NASDAQ:BMRC) versus Amalgamated Financial (NASDAQ:AMAL) Critical Contrast

Amalgamated Financial (NASDAQ:AMAL) and Bank of Marin Bancorp (NASDAQ:BMRC) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Dividends

Amalgamated Financial pays an annual dividend of $0.48 per share and has a dividend yield of 1.9%. Bank of Marin Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 6.8%. Amalgamated Financial pays out 15.7% of its earnings in the form of a dividend. Bank of Marin Bancorp pays out 120.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bank of Marin Bancorp has raised its dividend for 18 consecutive years. Bank of Marin Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Amalgamated Financial has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Bank of Marin Bancorp has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Insider & Institutional Ownership

75.9% of Amalgamated Financial shares are held by institutional investors. Comparatively, 52.3% of Bank of Marin Bancorp shares are held by institutional investors. 0.9% of Amalgamated Financial shares are held by insiders. Comparatively, 5.7% of Bank of Marin Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Amalgamated Financial and Bank of Marin Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Amalgamated Financial	23.22%	16.34%	1.17%
Bank of Marin Bancorp	9.28%	4.09%	0.45%

Valuation & Earnings

This table compares Amalgamated Financial and Bank of Marin Bancorp’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amalgamated Financial	$387.41 million	1.96	$87.98 million	$3.06	8.15
Bank of Marin Bancorp	$144.48 million	1.65	$19.90 million	$0.83	17.66

Amalgamated Financial has higher revenue and earnings than Bank of Marin Bancorp. Amalgamated Financial is trading at a lower price-to-earnings ratio than Bank of Marin Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Amalgamated Financial and Bank of Marin Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amalgamated Financial	0	0	3	0	3.00
Bank of Marin Bancorp	0	2	1	0	2.33

Amalgamated Financial presently has a consensus price target of $29.50, suggesting a potential upside of 18.33%. Bank of Marin Bancorp has a consensus price target of $17.33, suggesting a potential upside of 18.24%. Given Amalgamated Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Amalgamated Financial is more favorable than Bank of Marin Bancorp.

Summary

Amalgamated Financial beats Bank of Marin Bancorp on 13 of the 17 factors compared between the two stocks.

About Amalgamated Financial

Amalgamated Financial Corp. operates as the bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services for commercial and retail customers in the United States. The company accepts various deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts, NOW accounts, and certificates of deposit. It also provides various commercial loans comprising commercial and industrial, multifamily mortgage, and commercial real estate loans; residential mortgage loans; and retail loans, such as residential real estate, consumer solar, and consumer and other loans. In addition, the company offers online banking, bill payment, online cash management, and safe deposit box rental services; debit and ATM cards; and trust, custody, and investment management services comprising asset safekeeping, corporate actions, income collections, proxy, account transition, asset transfers, and conversion management services. Further, it provides investment products, such as funds spanning equity, fixed-income, real estate, and alternative investment products; and brokerage, asset management, and insurance products. Amalgamated Financial Corp. was founded in 1923 and is headquartered in New York, New York.

About Bank of Marin Bancorp

Bank of Marin Bancorp operates as the holding company for Bank of Marin that provides a range of financial services primarily to small to medium-sized businesses, not-for-profit organizations, and commercial real estate investors in the United States. The company offers personal and business checking and savings accounts; and individual retirement, health savings, and demand deposit marketplace accounts, as well as time certificates of deposit, certificate of deposit account registry, and insured cash sweep services. It also provides commercial real estate, commercial and industrial, and consumer loans, as well as construction financing and home equity lines of credit. In addition, the company offers merchant and payroll services; commercial equipment leasing program; payment solutions; treasury management services; credit cards; and mobile deposit, remote deposit capture, automated clearing house, wire transfer, and image lockbox services. Further, it provides wealth management and trust services comprising customized investment portfolio management, financial planning, trust administration, estate settlement, and custody services, as well as 401(k) plan services; and automated teller machines, and telephone and digital banking services. The company was incorporated in 1989 and is headquartered in Novato, California.