Reviewing BayCom (NASDAQ:BCML) & Central Valley Community Bancorp (NASDAQ:CVCY)

BayCom (NASDAQ:BCML) and Central Valley Community Bancorp (NASDAQ:CVCY) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for BayCom and Central Valley Community Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BayCom	0	0	1	0	3.00
Central Valley Community Bancorp	0	1	2	0	2.67

BayCom currently has a consensus target price of $24.00, suggesting a potential upside of 19.23%. Central Valley Community Bancorp has a consensus target price of $20.33, suggesting a potential upside of 2.23%. Given BayCom’s stronger consensus rating and higher possible upside, analysts plainly believe BayCom is more favorable than Central Valley Community Bancorp.

Valuation and Earnings

This table compares BayCom and Central Valley Community Bancorp’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BayCom	$133.31 million	1.71	$27.42 million	$2.21	9.11
Central Valley Community Bancorp	$109.44 million	2.15	$25.54 million	$2.17	9.17

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

Dividends

BayCom pays an annual dividend of $0.40 per share and has a dividend yield of 2.0%. Central Valley Community Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.4%. BayCom pays out 18.1% of its earnings in the form of a dividend. Central Valley Community Bancorp pays out 22.1% 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. BayCom has increased its dividend for 1 consecutive years.

Risk & Volatility

BayCom has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Central Valley Community Bancorp has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.

Institutional & Insider Ownership

66.2% of BayCom shares are held by institutional investors. Comparatively, 50.2% of Central Valley Community Bancorp shares are held by institutional investors. 6.6% of BayCom shares are held by company insiders. Comparatively, 15.9% of Central Valley Community Bancorp shares are held 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.

Profitability

This table compares BayCom and Central Valley Community Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BayCom	19.27%	8.45%	1.02%
Central Valley Community Bancorp	23.39%	13.47%	1.04%

Summary

Central Valley Community Bancorp beats BayCom on 9 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 Central Valley Community Bancorp

Central Valley Community Bancorp operates as the bank holding company for the Central Valley Community Bank that provides various commercial banking services to small and middle-market businesses and individuals in the central valley area of California. The company accepts demand, savings, and time deposits; certificates of deposit; and non-interest-bearing demand deposits, as well as provides NOW and money market accounts. It also provides products, such as commercial and industrial loans, as well as loans secured by crop production and livestock; owner occupied and investor commercial real estate, real estate construction and other land, agricultural real estate, and other real estate loans; and equity loans and lines of credit, and installment and other consumer loans. In addition, the company offers domestic and international wire transfer, inquiry, account status, bill paying, account transfers, and cash management and other customary banking services. Central Valley Community Bancorp was founded in 1979 and is based in Fresno, California.