California BanCorp (NASDAQ:BCAL – Get Free Report) and Red River Bancshares (NASDAQ:RRBI – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.
Dividends
California BanCorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. Red River Bancshares pays an annual dividend of $1.00 per share and has a dividend yield of 1.1%. California BanCorp pays out 21.9% of its earnings in the form of a dividend. Red River Bancshares pays out 15.0% 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. Red River Bancshares has increased its dividend for 3 consecutive years.
Institutional & Insider Ownership
55.4% of California BanCorp shares are owned by institutional investors. Comparatively, 27.5% of Red River Bancshares shares are owned by institutional investors. 8.1% of California BanCorp shares are owned by company insiders. Comparatively, 16.6% of Red River Bancshares shares are owned by company 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.
Risk & Volatility
Profitability
This table compares California BanCorp and Red River Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| California BanCorp | 25.68% | 10.59% | 1.49% |
| Red River Bancshares | 25.74% | 12.46% | 1.36% |
Earnings and Valuation
This table compares California BanCorp and Red River Bancshares”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| California BanCorp | $237.07 million | 2.63 | $63.06 million | $1.83 | 10.60 |
| Red River Bancshares | $127.40 million | 4.68 | $42.76 million | $6.68 | 13.55 |
California BanCorp has higher revenue and earnings than Red River Bancshares. California BanCorp is trading at a lower price-to-earnings ratio than Red River Bancshares, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for California BanCorp and Red River Bancshares, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| California BanCorp | 0 | 1 | 3 | 1 | 3.00 |
| Red River Bancshares | 0 | 3 | 1 | 0 | 2.25 |
California BanCorp currently has a consensus price target of $20.67, indicating a potential upside of 6.57%. Red River Bancshares has a consensus price target of $80.50, indicating a potential downside of 11.08%. Given California BanCorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe California BanCorp is more favorable than Red River Bancshares.
Summary
California BanCorp beats Red River Bancshares on 10 of the 18 factors compared between the two stocks.
About California BanCorp
Southern California Bancorp operates as the holding company for Bank of Southern California, N.A. that provides various financial products to individuals, professionals, and small-to medium-sized businesses. The company offers checking, personal and business savings, and money market accounts, as well as certificates of deposit. It also provides home equity lines of credit, business loans and lines of credit, commercial real estate and construction loans, small business administration loans, letters of credit, and personal and business credit cards. In addition, the company provides cash vault, sweep accounts, and remote deposit capture services; online and mobile banking services; courier service; lockbox services; and merchant services. It operates branches in San Diego, Orange, Ventura, Los Angeles, and Riverside counties, as well as the Inland Empire. The company was founded in 2001 and is headquartered in San Diego, California.
About Red River Bancshares
Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company provides various deposit products, including checking, saving, money market accounts, and time deposits. It offers commercial real estate loans; one-to-four family mortgage loans and home equity lines of credit; construction and development loans; commercial and industrial loans; small business administration paycheck protection program loans; tax-exempt loans; consumer loans to individuals for personal, family, and household purposes, including secured and unsecured installment and term loans; home mortgage loans; and lines of credit and standby letters of credit. In addition, the company provides treasury management, private banking, and brokerage; investment advisory, financial planning, and a suite of retirement plans; debit and credit cards, direct deposits, cashier's checks, and wire transfer services; online banking services, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and banking services in person, through ATMs, drive-through facilities, night deposits, telephone, mail, mobile banking, and remote deposits. Red River Bancshares, Inc. was incorporated in 1998 and is headquartered in Alexandria, Louisiana.
Receive News & Ratings for California BanCorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for California BanCorp and related companies with MarketBeat.com's FREE daily email newsletter.
