RBB Bancorp (NASDAQ:RBB) vs. Silvergate Capital (NYSE:SI) Head-To-Head Review

RBB Bancorp (NASDAQ:RBB) and Silvergate Capital (NYSE:SI) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Volatility and Risk

RBB Bancorp has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Silvergate Capital has a beta of 2.23, meaning that its share price is 123% more volatile than the S&P 500.

Dividends

RBB Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 3.7%. Silvergate Capital pays an annual dividend of $2.94 per share and has a dividend yield of 735.5%. RBB Bancorp pays out 55.2% of its earnings in the form of a dividend. Silvergate Capital pays out -9.8% 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. Silvergate Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares RBB Bancorp and Silvergate Capital”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RBB Bancorp	$114.91 million	2.68	$26.67 million	$1.16	14.99
Silvergate Capital	-$609.47 million	-0.02	-$937.91 million	($29.96)	-0.01

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for RBB Bancorp and Silvergate Capital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RBB Bancorp	0	4	0	0	2.00
Silvergate Capital	0	0	0	0	0.00

RBB Bancorp presently has a consensus target price of $21.25, suggesting a potential upside of 22.20%. Given RBB Bancorp’s stronger consensus rating and higher probable upside, equities analysts clearly believe RBB Bancorp is more favorable than Silvergate Capital.

Insider & Institutional Ownership

40.1% of RBB Bancorp shares are owned by institutional investors. Comparatively, 94.4% of Silvergate Capital shares are owned by institutional investors. 4.6% of RBB Bancorp shares are owned by insiders. Comparatively, 1.7% of Silvergate Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RBB Bancorp	11.49%	5.21%	0.68%
Silvergate Capital	45.10%	8.87%	0.81%

Summary

RBB Bancorp beats Silvergate Capital on 8 of the 15 factors compared between the two stocks.

About RBB Bancorp

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American, Korean-American, and other Asian-American communities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company also offers commercial and industrial lines of credit, term loans, mortgage warehouse lines, and international trade discounts; commercial real estate loans; residential, commercial, and land acquisition and development construction loans; small business administration loans; and single-family residential mortgage loans. In addition, it provides international letters of credit, SWIFT, export advisory, trade finance discount, and foreign exchange services; and remote deposit, e-banking, and mobile banking services. The company serves individuals, businesses, municipalities, and other entities. It operates branches in the Western region with branches in Los Angeles County, California; Orange County, California; Ventura County, California; Clark County, Nevada; Honolulu, Hawaii, as well as in Eastern region with branches in Manhattan, Brooklyn and Queens, New York; Chicago, Illinois; and Edison, New Jersey. RBB Bancorp was founded in 2008 and is headquartered in Los Angeles, California.

About Silvergate Capital

Silvergate Capital Corporation operates as a bank holding company for Silvergate Bank that provides banking products and services to business and individual clients in the United States. The company accepts deposit products, including interest and noninterest bearing demand accounts, money market and savings accounts, and certificates of deposit accounts. Its loan products comprise one-to-four family real estate loans, multi-family real estate loans, commercial real estate loans, construction loans, commercial and industrial loans, mortgage warehouse loans, and reverse mortgage loans, as well as consumer loans and other loans secured by personal property. The company also provides cash management services for digital currency-related businesses. Silvergate Capital Corporation was founded in 1988 and is headquartered in La Jolla, California.