Critical Analysis: Beverly Hills Bancorp (OTCMKTS:BHBCQ) and Eagle Bancorp (NASDAQ:EGBN)

Beverly Hills Bancorp (OTCMKTS:BHBCQ) and Eagle Bancorp (NASDAQ:EGBN) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Earnings & Valuation

This table compares Beverly Hills Bancorp and Eagle Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beverly Hills Bancorp	N/A	N/A	N/A	N/A	N/A
Eagle Bancorp	$309.65 million	2.59	$100.53 million	($1.40)	-18.96

Eagle Bancorp has higher revenue and earnings than Beverly Hills Bancorp.

Profitability

This table compares Beverly Hills Bancorp and Eagle Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beverly Hills Bancorp	N/A	N/A	N/A
Eagle Bancorp	-5.97%	5.04%	0.54%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Beverly Hills Bancorp and Eagle Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beverly Hills Bancorp	0	0	0	0	0.00
Eagle Bancorp	0	2	0	0	2.00

Eagle Bancorp has a consensus price target of $29.50, indicating a potential upside of 11.11%. Given Eagle Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Eagle Bancorp is more favorable than Beverly Hills Bancorp.

Institutional and Insider Ownership

78.0% of Eagle Bancorp shares are owned by institutional investors. 13.0% of Beverly Hills Bancorp shares are owned by insiders. Comparatively, 3.1% of Eagle Bancorp shares are owned 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.

Summary

Eagle Bancorp beats Beverly Hills Bancorp on 6 of the 8 factors compared between the two stocks.

About Beverly Hills Bancorp

Beverly Hills Bancorp Inc. is a financial holding company and conducts its banking and lending operations through its primary subsidiary, First Bank of Beverly Hills. The Bank focuses on niche products, including the origination and acquisition of commercial and multi-family real estate loans. The Bank's principal funding sources consist of certificates of deposits generated through independent brokers and its money desk, borrowings from the Federal Home Loan Bank of San Francisco and repurchase agreements with major investment banks. The Bank is a California state-chartered commercial bank and is regulated by the Federal Deposit Insurance Corporation.Beverly Hills Bancorp's common stock is traded on the Nasdaq National Market under the trading symbol "BHBC".

About Eagle Bancorp

Eagle Bancorp, Inc. operates as the bank holding company for EagleBank that provides commercial and consumer banking services primarily in the United States. The company also offers various commercial and consumer lending products comprising commercial loans for working capital, equipment purchases, real estate lines of credit, and government contract financing; asset based lending and accounts receivable financing; construction and commercial real estate loans; business equipment financing; consumer home equity lines of credit, personal lines of credit, and term loans; consumer installment loans, such as auto and personal loans; personal credit cards; and residential mortgage loans. In addition, it provides online and mobile banking services; checking and saving accounts; and other deposit services, including cash management services, business sweep accounts, lock boxes, remote deposit captures, account reconciliation services, merchant card services, safety deposit boxes, and automated clearing house origination, as well as after-hours depositories and ATM services. Further, the company offers insurance products and services through a referral program; and treasury management services. The company serves sole proprietors, small and medium-sized businesses, partnerships, corporations, and non-profit organizations and associations, as well as investors. Eagle Bancorp, Inc. was incorporated in 1997 and is headquartered in Bethesda, Maryland.