Analyzing RBB Bancorp (NASDAQ:RBB) and Avidbank (NASDAQ:AVBH)

RBB Bancorp (NASDAQ:RBB) and Avidbank (NASDAQ:AVBH) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.

Profitability

This table compares RBB Bancorp and Avidbank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RBB Bancorp	18.02%	8.33%	1.05%
Avidbank	20.02%	11.90%	1.32%

Volatility & Risk

RBB Bancorp has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Avidbank has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.

Insider & Institutional Ownership

40.1% of RBB Bancorp shares are held by institutional investors. Comparatively, 15.9% of Avidbank shares are held by institutional investors. 6.8% of RBB Bancorp shares are held by insiders. Comparatively, 9.6% of Avidbank shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares RBB Bancorp and Avidbank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RBB Bancorp	$238.00 million	1.82	$31.95 million	$2.58	10.05
Avidbank	$151.76 million	2.51	-$19.55 million	$3.14	11.03

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for RBB Bancorp and Avidbank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RBB Bancorp	0	3	2	0	2.40
Avidbank	0	1	3	1	3.00

RBB Bancorp presently has a consensus target price of $29.33, indicating a potential upside of 13.08%. Avidbank has a consensus target price of $40.00, indicating a potential upside of 15.47%. Given Avidbank’s stronger consensus rating and higher possible upside, analysts plainly believe Avidbank is more favorable than RBB Bancorp.

Summary

Avidbank beats RBB Bancorp on 11 of the 15 factors compared between the two stocks.

About RBB Bancorp

RBB Bancorp is a bank holding company headquartered in Los Angeles, California. Its principal subsidiary, Royal Business Bank, provides banking services to businesses, professionals and individuals, with an emphasis on serving small and middle-market companies and communities that are often connected to Asian-American and immigrant-owned businesses. Royal Business Bank offers commercial and industrial loans, commercial real estate financing, small business and Small Business Administration lending, residential mortgage loans, construction financing and consumer loans.

About Avidbank

Avidbank, the banking subsidiary of Avidbank Holdings, Inc. (NASDAQ: AVBH), is a commercial bank headquartered in Silicon Valley. Founded in 2003, the company provides banking services to businesses, entrepreneurs, and professionals, with a particular focus on technology, life sciences, venture capital, private equity, and other innovation-driven industries. Avidbank offers commercial lending, business checking and savings accounts, treasury management, cash management, and other deposit services.