Landmark Bancorp (NASDAQ:LARK) and BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP) Critical Analysis

BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP) and Landmark Bancorp (NASDAQ:LARK) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Risk & Volatility

BCB Bancorp, Inc. (NJ) has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Landmark Bancorp has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Profitability

This table compares BCB Bancorp, Inc. (NJ) and Landmark Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BCB Bancorp, Inc. (NJ)	-10.21%	-6.29%	-0.54%
Landmark Bancorp	20.56%	12.49%	1.25%

Insider and Institutional Ownership

36.0% of BCB Bancorp, Inc. (NJ) shares are owned by institutional investors. Comparatively, 25.7% of Landmark Bancorp shares are owned by institutional investors. 11.5% of BCB Bancorp, Inc. (NJ) shares are owned by company insiders. Comparatively, 9.8% of Landmark Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares BCB Bancorp, Inc. (NJ) and Landmark Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BCB Bancorp, Inc. (NJ)	$181.51 million	0.85	-$12.53 million	($1.10)	-7.77
Landmark Bancorp	$95.97 million	2.02	$18.77 million	$3.29	9.66

Landmark Bancorp has lower revenue, but higher earnings than BCB Bancorp, Inc. (NJ). BCB Bancorp, Inc. (NJ) is trading at a lower price-to-earnings ratio than Landmark Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for BCB Bancorp, Inc. (NJ) and Landmark Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BCB Bancorp, Inc. (NJ)	1	3	0	0	1.75
Landmark Bancorp	0	1	1	0	2.50

BCB Bancorp, Inc. (NJ) presently has a consensus price target of $10.00, indicating a potential upside of 16.96%. Given BCB Bancorp, Inc. (NJ)’s higher probable upside, equities research analysts plainly believe BCB Bancorp, Inc. (NJ) is more favorable than Landmark Bancorp.

Dividends

BCB Bancorp, Inc. (NJ) pays an annual dividend of $0.32 per share and has a dividend yield of 3.7%. Landmark Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 2.6%. BCB Bancorp, Inc. (NJ) pays out -29.1% of its earnings in the form of a dividend. Landmark Bancorp pays out 25.5% 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. Landmark Bancorp has raised its dividend for 6 consecutive years. BCB Bancorp, Inc. (NJ) is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Landmark Bancorp beats BCB Bancorp, Inc. (NJ) on 10 of the 17 factors compared between the two stocks.

About BCB Bancorp, Inc. (NJ)

BCB Bancorp, Inc. operates as a bank holding company for BCB Community Bank that engages in the provision of banking products and services to businesses and individuals in the United States. The company offers insured deposit products, including savings and club accounts, interest and non-interest-bearing demand accounts, money market accounts, certificates of deposit, and individual retirement accounts. It also provides various loan products, such as commercial and multi-family real estate loans, one-to-four family mortgage loans, commercial business loans, construction loans, home equity loans, and consumer loans. In addition, the company offers retail and commercial banking services comprising wire transfer, money order, safe deposit box, night depository, debit card, online and mobile banking, fraud detection, and automated teller services. The company was founded in 2000 and is based in Bayonne, New Jersey.

About Landmark Bancorp

Landmark Bancorp, Inc. operates as the financial holding company for Landmark National Bank that provides various financial and banking services to its local communities. It offers non-interest bearing demand, money market, checking, and savings accounts, as well as certificates of deposit. The company also provides one-to-four family residential real estate, construction and land, commercial real estate, commercial, paycheck protection program, municipal, and agriculture loans; and consumer and other loans, such as automobile, boat, and home improvement and home equity loans, as well as insurance, and mobile and online banking services. In addition, the company invests in certain investment and mortgage-related securities. It operates in the eastern, central, southeast, and southwest Kansas. The company was founded in 1885 and is headquartered in Manhattan, Kansas.