Banc of California (NYSE:BANC – Get Free Report) and Eagle Bancorp (NASDAQ:EGBN – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.
Institutional and Insider Ownership
86.9% of Banc of California shares are owned by institutional investors. Comparatively, 78.0% of Eagle Bancorp shares are owned by institutional investors. 2.8% of Banc of California shares are owned by company insiders. Comparatively, 3.1% of Eagle Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Banc of California and Eagle Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Banc of California | -0.58% | 8.51% | 0.72% |
| Eagle Bancorp | 9.30% | 4.66% | 0.54% |
Dividends
Banc of California pays an annual dividend of $0.48 per share and has a dividend yield of 2.7%. Eagle Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.1%. Banc of California pays out -141.2% of its earnings in the form of a dividend. Eagle Bancorp pays out 2.3% 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. Banc of California is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
Banc of California has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Eagle Bancorp has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.
Earnings & Valuation
This table compares Banc of California and Eagle Bancorp”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Banc of California | $1.82 billion | 1.57 | $228.97 million | ($0.34) | -53.03 |
| Eagle Bancorp | $634.26 million | 1.64 | -$138.05 million | $1.75 | 19.52 |
Banc of California has higher revenue and earnings than Eagle Bancorp. Banc of California is trading at a lower price-to-earnings ratio than Eagle Bancorp, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Banc of California and Eagle Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Banc of California | 0 | 3 | 7 | 0 | 2.70 |
| Eagle Bancorp | 1 | 2 | 1 | 1 | 2.40 |
Banc of California currently has a consensus target price of $22.38, suggesting a potential upside of 24.10%. Eagle Bancorp has a consensus target price of $31.00, suggesting a potential downside of 9.25%. Given Banc of California’s stronger consensus rating and higher probable upside, analysts clearly believe Banc of California is more favorable than Eagle Bancorp.
Summary
Banc of California beats Eagle Bancorp on 10 of the 17 factors compared between the two stocks.
About Banc of California
Banc of California, Inc. is a bank holding company headquartered in Los Angeles. Through its banking subsidiary, Banc of California, N.A., it provides commercial banking services to businesses, professionals and individuals, with a focus on customers in California. The company offers business and consumer deposit accounts, commercial and real estate lending, and treasury management services. Its lending activities include financing for commercial real estate and businesses, along with specialized financing solutions.
About Eagle Bancorp
Eagle Bancorp, Inc. is the bank holding company for EagleBank, a community bank headquartered in Bethesda, Maryland. Founded in 1998, EagleBank serves businesses, organizations and individuals in the Washington, D.C., metropolitan area, including parts of Maryland and Northern Virginia. The company provides commercial and consumer banking services, including business and commercial real estate lending, deposit accounts, cash management and other treasury services. EagleBank also offers banking and lending products to individuals and nonprofit organizations.
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