Comparing Redwood Capital Bancorp (OTCMKTS:RWCB) & Carver Bancorp (NASDAQ:CARV)

Carver Bancorp (NASDAQ:CARV) and Redwood Capital Bancorp (OTCMKTS:RWCB) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Carver Bancorp and Redwood Capital Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carver Bancorp	1	0	0	0	1.00
Redwood Capital Bancorp	0	0	0	0	0.00

Valuation and Earnings

This table compares Carver Bancorp and Redwood Capital Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carver Bancorp	$22.74 million	0.46	-$13.74 million	($1.29)	-1.31
Redwood Capital Bancorp	N/A	N/A	N/A	$0.43	76.74

Redwood Capital Bancorp has lower revenue, but higher earnings than Carver Bancorp. Carver Bancorp is trading at a lower price-to-earnings ratio than Redwood Capital Bancorp, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

18.2% of Carver Bancorp shares are owned by institutional investors. 1.3% of Carver Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Carver Bancorp and Redwood Capital Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carver Bancorp	-34.89%	-171.55%	-1.82%
Redwood Capital Bancorp	N/A	N/A	N/A

Summary

Redwood Capital Bancorp beats Carver Bancorp on 5 of the 9 factors compared between the two stocks.

About Carver Bancorp

Carver Bancorp, Inc. operates as the holding company for Carver Federal Savings Bank that provides consumer and commercial banking services for consumers, businesses, non-profit organizations, and governmental and quasi-governmental agencies primarily in New York. It accepts various deposit products, including demand, savings, and time deposits; passbook and statement accounts, and certificates of deposit; and individual retirement accounts. The company provides lending products, such as one-to-four family residential, multifamily real estate, and commercial real estate lending; and construction, business and small business administration, and consumer and other loans. In addition, it offers other consumer and commercial banking products and services, including debit cards, online account opening and banking, online bill pay, and telephone banking, as well as check cashing, wire transfer, bill payment, reloadable prepaid card, and money order services. Carver Bancorp, Inc. was founded in 1948 and is headquartered in New York, New York.

About Redwood Capital Bancorp

Redwood Capital Bancorp operates as the bank holding company for Redwood Capital Bank that provides various banking products and services to individuals and businesses in California. The company accepts checking, savings, and money market accounts, as well as certificates of deposit. It also offers real estate loans, home equity lines of credit, construction and development loans, term loans for machinery and equipment, and lines of credit for working capital, as well as industrial, agricultural, and personal credits. In addition, the company provides credit and debit cards, re-order checks, and online and mobile banking services. Redwood Capital Bancorp was founded in 2004 and is based in Eureka, California.