Howard Bancorp (HBMD) vs. ConnectOne Bancorp (CNOB) Financial Analysis

Howard Bancorp (NASDAQ:HBMD) and ConnectOne Bancorp (NASDAQ:CNOB) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Valuation & Earnings

This table compares Howard Bancorp and ConnectOne Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Howard Bancorp $98.25 million 2.69 -$3.83 million $0.65 21.35
ConnectOne Bancorp $221.87 million 3.30 $60.35 million $2.23 9.26

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

Dividends

ConnectOne Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 1.5%. Howard Bancorp does not pay a dividend. ConnectOne Bancorp pays out 13.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings for Howard Bancorp and ConnectOne Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Howard Bancorp 0 3 0 0 2.00
ConnectOne Bancorp 0 0 0 0 N/A

Howard Bancorp presently has a consensus price target of $17.00, indicating a potential upside of 22.48%. Given Howard Bancorp’s higher probable upside, analysts plainly believe Howard Bancorp is more favorable than ConnectOne Bancorp.

Volatility & Risk

Howard Bancorp has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500. Comparatively, ConnectOne Bancorp has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Insider & Institutional Ownership

53.5% of Howard Bancorp shares are held by institutional investors. Comparatively, 60.3% of ConnectOne Bancorp shares are held by institutional investors. 23.2% of Howard Bancorp shares are held by company insiders. Comparatively, 7.7% of ConnectOne Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Howard Bancorp and ConnectOne Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Howard Bancorp -3.90% 4.03% 0.54%
ConnectOne Bancorp 27.20% 12.31% 1.36%

Summary

ConnectOne Bancorp beats Howard Bancorp on 10 of the 14 factors compared between the two stocks.

Howard Bancorp Company Profile

Howard Bancorp, Inc. operates as the bank holding company for Howard Bank that provides commercial banking, mortgage banking, and consumer finance products and services to businesses, business owners, professionals, and other consumers. The company offers various consumer and business deposit products, including demand, money market, savings, individual retirement, and commercial and retail checking accounts, as well as certificates of deposit. It also provides commercial loans, such as lines of credit, revolving credit facilities, accounts receivable and inventory financing, term loans, equipment loans, small business administration loans, stand-by letters of credit, and unsecured loans; commercial mortgage loans for owner occupied and investment properties; construction loans; residential mortgage loans; and secured and unsecured consumer loans. In addition, the company offers wire transfer services; automated teller machines and check cards; and safe deposit boxes, as well as credit cards through a third party processor. Further, it provides Internet banking, merchant card, overnight sweep, and remote deposit capture services; and Mobiliti mobile banking, PopMoney, and eStatement products. As of December 31, 2018, the company operated through a network of 21 full service branches, as well as 11 mortgage and commercial lending offices located in Maryland. Howard Bancorp, Inc. was founded in 2004 and is headquartered in Baltimore, Maryland.

ConnectOne Bancorp Company Profile

ConnectOne Bancorp, Inc. operates as the bank holding company for ConnectOne Bank, a state chartered bank that provides various commercial banking products and services. The company offers a range of deposit products, including personal and business checking accounts, retirement accounts, money market accounts, and time and savings accounts. It also provides personal and commercial business loans on a secured and unsecured basis; revolving lines of credit; commercial mortgage loans; residential mortgages on primary and secondary residences; home equity loans; bridge loans; and other personal purpose loans. In addition, the company offers credit cards, wire transfers, access to automated teller services, Internet banking, treasury direct, ACH origination, lockbox, mobile banking by phone, safe deposit box, and remote deposit capture services. As of January 24, 2019, the company offered its commercial and consumer banking and lending services and products through its 29 banking offices located in New York and New Jersey. It serves small-to-medium sized businesses, high net worth individuals, professional practices, and consumer and retail clients. The company was formerly known as Center Bancorp, Inc. and changed its name to ConnectOne Bancorp, Inc. in July 2014. ConnectOne Bancorp, Inc. was incorporated in 1982 and is headquartered in Englewood Cliffs, New Jersey.

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