SB Financial Group (NASDAQ:SBFG) and BayCom (NASDAQ:BCML) Head to Head Analysis

BayCom (NASDAQ:BCML) and SB Financial Group (NASDAQ:SBFG) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Dividends

BayCom pays an annual dividend of $0.60 per share and has a dividend yield of 2.1%. SB Financial Group pays an annual dividend of $0.58 per share and has a dividend yield of 2.6%. BayCom pays out 28.6% of its earnings in the form of a dividend. SB Financial Group pays out 33.7% 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. SB Financial Group has increased its dividend for 11 consecutive years. SB Financial Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

66.2% of BayCom shares are owned by institutional investors. Comparatively, 66.7% of SB Financial Group shares are owned by institutional investors. 7.2% of BayCom shares are owned by company insiders. Comparatively, 4.1% of SB Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares BayCom and SB Financial Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BayCom	$138.09 million	2.25	$23.61 million	$2.10	13.33
SB Financial Group	$81.37 million	1.83	$11.47 million	$1.72	13.01

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

Volatility and Risk

BayCom has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, SB Financial Group has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Profitability

This table compares BayCom and SB Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BayCom	17.10%	7.45%	0.92%
SB Financial Group	14.10%	8.98%	0.84%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for BayCom and SB Financial Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BayCom	0	0	1	0	3.00
SB Financial Group	0	0	0	0	0.00

BayCom presently has a consensus target price of $28.00, suggesting a potential upside of 0.04%. Given BayCom’s stronger consensus rating and higher possible upside, research analysts plainly believe BayCom is more favorable than SB Financial Group.

Summary

BayCom beats SB Financial Group on 13 of the 17 factors compared between the two stocks.

About BayCom

BayCom Corp operates as the bank holding company for United Business Bank that provides various financial services to small and mid-sized businesses, service professionals, and individuals. The company provides demand, savings, money market, and time deposit accounts. It offers commercial and multifamily real estate loans, including owner-occupied and investor real estate loans; commercial and industrial loans, such as equipment loans and working capital lines of credit; small business administration loans; construction and land loans; agriculture-related loans; and consumer loans comprising installment loans, unsecured and secured personal lines of credit, and overdraft protection. In addition, the company provides online and mobile banking, automated teller machine, remote deposit capture, night depository, courier, direct deposit, treasury management, wire transfer, automated clearing house, debit cards, cashier's and travelers checks, letters of credit, lockbox, positive pay, reverse positive pay, and account reconciliation services, as well as zero balance accounts and sweep accounts, including loan sweep. It operates through a network of full-service banking branches in Northern and Southern California; Las Vegas, Nevada; Denver, Colorado; Custer, Delta, and Grand counties, Colorado; and Seattle, Washington and Central New Mexico. The company was formerly known as Bay Commercial Bank and changed its name to BayCom Corp in January 2017. BayCom Corp was incorporated in 2004 and is headquartered in Walnut Creek, California.

About SB Financial Group

SB Financial Group, Inc. operates as the financial holding company for the State Bank and Trust Company that provides a range of commercial banking and wealth management services to individual and corporate customers primarily in Ohio, Indiana, and Michigan. It offers checking, savings, money market accounts, as well as time certificates of deposit; and commercial, consumer, agricultural, and residential mortgage loans. The company also provides automatic teller machine, personal and corporate trust, commercial leasing, bank credit card, safe deposit box rental, internet banking, private client group, and other personalized banking products and services; and various trust and financial services comprising asset management services for individuals and corporate employee benefit plans, as well as brokerage services. In addition, it sells insurance products to retail and commercial customers. The company was formerly known as Rurban Financial Corp. and changed its name to SB Financial Group, Inc. in April 2013. SB Financial Group, Inc. was founded in 1902 and is based in Defiance, Ohio.