Eagle Bancorp (EGBN) & Bank of Marin Bancorp (BMRC) Critical Analysis

Eagle Bancorp (NASDAQ:EGBN) and Bank of Marin Bancorp (NASDAQ:BMRC) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Eagle Bancorp and Bank of Marin Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eagle Bancorp 0 2 3 0 2.60
Bank of Marin Bancorp 0 3 0 0 2.00

Eagle Bancorp presently has a consensus target price of $68.00, suggesting a potential upside of 24.89%. Bank of Marin Bancorp has a consensus target price of $43.67, suggesting a potential upside of 2.07%. Given Eagle Bancorp’s stronger consensus rating and higher possible upside, equities analysts plainly believe Eagle Bancorp is more favorable than Bank of Marin Bancorp.

Dividends

Bank of Marin Bancorp pays an annual dividend of $0.76 per share and has a dividend yield of 1.8%. Eagle Bancorp does not pay a dividend. Bank of Marin Bancorp pays out 32.6% of its earnings in the form of a dividend. Bank of Marin Bancorp has raised its dividend for 10 consecutive years.

Profitability

This table compares Eagle Bancorp and Bank of Marin Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eagle Bancorp 36.62% 14.58% 1.90%
Bank of Marin Bancorp 31.00% 10.63% 1.30%

Valuation and Earnings

This table compares Eagle Bancorp and Bank of Marin Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eagle Bancorp $415.87 million 4.52 $152.28 million $4.42 12.32
Bank of Marin Bancorp $105.22 million 5.61 $32.62 million $2.33 18.36

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

Institutional and Insider Ownership

79.8% of Eagle Bancorp shares are owned by institutional investors. Comparatively, 43.1% of Bank of Marin Bancorp shares are owned by institutional investors. 7.7% of Eagle Bancorp shares are owned by company insiders. Comparatively, 5.2% of Bank of Marin Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Eagle Bancorp has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Bank of Marin Bancorp has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500.

Summary

Eagle Bancorp beats Bank of Marin Bancorp on 13 of the 17 factors compared between the two stocks.

Eagle Bancorp Company Profile

Eagle Bancorp, Inc. operates as the bank holding company for EagleBank that provides commercial and consumer banking services primarily in the United States. It accepts business and personal checking, NOW, tiered savings, and money market accounts, as well as individual retirement and investment sweep accounts; and time deposits. The company also offers various commercial and consumer lending products comprising commercial loans for working capital, equipment purchases, real estate lines of credit, and government contract financing; asset based lending and accounts receivable financing; construction and commercial real estate loans; business equipment financing; consumer home equity lines of credit, personal lines of credit, and term loans; consumer installment loans, such as auto and personal loans; personal credit cards; residential mortgage loans; and real estate secured loans. In addition, it provides online and mobile banking services; other services, including cash management services, business sweep accounts, lock boxes, remote deposit captures, account reconciliation services, merchant card services, safety deposit boxes, and automated clearing house origination, as well as after-hours depositories and ATM services. Further, it provides commercial and retail insurance products through a referral arrangement. The company serves sole proprietorships, small and medium-sized businesses, partnerships, corporations, non-profit organizations, associations, and individuals, as well as investors. It operates 20 banking offices comprising 6 in Suburban Maryland, 5 in the District of Columbia, and 9 in Northern Virginia. Eagle Bancorp, Inc. was founded in 1997 and is headquartered in Bethesda, Maryland.

Bank of Marin Bancorp Company Profile

Bank of Marin Bancorp operates as the holding company for Bank of Marin that provides a range of financial services primarily to professionals, small and middle-market businesses, individuals, and not-for-profit organizations in California, the United States. The company offers personal and business checking and savings accounts; and time certificates of deposit, individual retirement accounts, health savings accounts, and demand deposit marketplace accounts, as well as certificate of deposit account registry and insured cash sweep services. It also provides commercial real estate, commercial and industrial, and consumer loans, as well as construction financing and home equity lines of credit. In addition, the company offers merchant card and cash management services; credit cards; mobile deposit, remote deposit capture, automated clearing house, and image lockbox services, as well as wire transfers; fraud detection tools; and valet pick-up service for non-cash deposits. Further, it provides wealth management and trust services comprising customized investment portfolio management, trust administration, estate settlement, and custody services, as well as 401(k) plan services; and automated teller machines, and telephone and Internet banking services. The company operates 23 offices in Marin, Sonoma, San Francisco, Napa, and Alameda counties. Bank of Marin Bancorp was founded in 1989 and is headquartered in Novato, California.

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