BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP) versus SmartFinancial (NASDAQ:SMBK) Critical Review

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

Risk and Volatility

BCB Bancorp, Inc. (NJ) has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, SmartFinancial has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Profitability

This table compares BCB Bancorp, Inc. (NJ) and SmartFinancial’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%
SmartFinancial	12.67%	7.33%	0.71%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for BCB Bancorp, Inc. (NJ) and SmartFinancial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BCB Bancorp, Inc. (NJ)	1	4	0	0	1.80
SmartFinancial	0	4	2	1	2.57

BCB Bancorp, Inc. (NJ) presently has a consensus price target of $8.95, suggesting a potential upside of 4.68%. SmartFinancial has a consensus price target of $50.42, suggesting a potential upside of 1.81%. Given BCB Bancorp, Inc. (NJ)’s higher possible upside, analysts clearly believe BCB Bancorp, Inc. (NJ) is more favorable than SmartFinancial.

Earnings and Valuation

This table compares BCB Bancorp, Inc. (NJ) and SmartFinancial”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)	$100.44 million	1.54	-$12.53 million	($1.10)	-7.77
SmartFinancial	$210.19 million	4.03	$36.14 million	$3.39	14.61

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

Institutional & Insider Ownership

36.0% of BCB Bancorp, Inc. (NJ) shares are owned by institutional investors. Comparatively, 58.8% of SmartFinancial shares are owned by institutional investors. 11.5% of BCB Bancorp, Inc. (NJ) shares are owned by insiders. Comparatively, 6.9% of SmartFinancial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

BCB Bancorp, Inc. (NJ) pays an annual dividend of $0.32 per share and has a dividend yield of 3.7%. SmartFinancial pays an annual dividend of $0.36 per share and has a dividend yield of 0.7%. BCB Bancorp, Inc. (NJ) pays out -29.1% of its earnings in the form of a dividend. SmartFinancial pays out 10.6% 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. SmartFinancial has increased its dividend for 3 consecutive years. BCB Bancorp, Inc. (NJ) is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

SmartFinancial beats BCB Bancorp, Inc. (NJ) on 13 of the 18 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 SmartFinancial

SmartFinancial, Inc. operates as the bank holding company for SmartBank that provides various financial services to individuals and corporate customers in Tennessee, Alabama, and Florida. It operates through Commercial Real Estate, Consumer Real Estate, Construction and Land Development, Commercial and Industrial, Leases, and Consumer and Other segments. The company offers noninterest-bearing and interest-bearing checking, interest-bearing demand, savings, money market, time deposit, individual retirement accounts, as well as certificates of deposit. It also provides commercial and residential real estate, consumer real estate, and construction and land development loans; commercial and financial loans and leases; commercial business and mortgage loans; and direct consumer installment, educational, agriculture, and other revolving credit loans; equipment financing, heavy equipment, semis, and trailers loans and leases to small and mid-size companies; letters of credit; and overdraft facilities. In addition, the company offers wealth management, insurance, mortgage origination, and internet and mobile banking services. SmartFinancial, Inc. is headquartered in Knoxville, Tennessee.