Contrasting Byline Bancorp (NYSE:BY) & BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP)

Byline Bancorp (NYSE:BY) and BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Earnings & Valuation

This table compares Byline Bancorp and BCB Bancorp, Inc. (NJ)”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Byline Bancorp	$633.15 million	2.29	$130.05 million	$3.07	10.38
BCB Bancorp, Inc. (NJ)	$181.51 million	0.91	-$12.53 million	($0.07)	-136.00

Byline Bancorp has higher revenue and earnings than BCB Bancorp, Inc. (NJ). BCB Bancorp, Inc. (NJ) is trading at a lower price-to-earnings ratio than Byline Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Byline Bancorp and BCB Bancorp, Inc. (NJ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Byline Bancorp	21.86%	11.56%	1.47%
BCB Bancorp, Inc. (NJ)	0.39%	0.24%	0.02%

Risk and Volatility

Byline Bancorp has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, BCB Bancorp, Inc. (NJ) has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Byline Bancorp and BCB Bancorp, Inc. (NJ), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Byline Bancorp	0	2	2	0	2.50
BCB Bancorp, Inc. (NJ)	1	3	0	0	1.75

Byline Bancorp presently has a consensus target price of $34.67, indicating a potential upside of 8.74%. BCB Bancorp, Inc. (NJ) has a consensus target price of $10.00, indicating a potential upside of 5.04%. Given Byline Bancorp’s stronger consensus rating and higher probable upside, research analysts clearly believe Byline Bancorp is more favorable than BCB Bancorp, Inc. (NJ).

Insider and Institutional Ownership

67.7% of Byline Bancorp shares are owned by institutional investors. Comparatively, 36.0% of BCB Bancorp, Inc. (NJ) shares are owned by institutional investors. 28.8% of Byline Bancorp shares are owned by insiders. Comparatively, 11.5% of BCB Bancorp, Inc. (NJ) shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Byline Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 1.5%. BCB Bancorp, Inc. (NJ) pays an annual dividend of $0.32 per share and has a dividend yield of 3.4%. Byline Bancorp pays out 15.6% of its earnings in the form of a dividend. BCB Bancorp, Inc. (NJ) pays out -457.1% 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. Byline Bancorp has increased its dividend for 1 consecutive years. BCB Bancorp, Inc. (NJ) is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Byline Bancorp beats BCB Bancorp, Inc. (NJ) on 15 of the 17 factors compared between the two stocks.

About Byline Bancorp

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits. The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services. In addition, it offers financing solutions for equipment vendors and their end users; syndication services; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.

About BCB Bancorp, Inc. (NJ)

BCB Bancorp, Inc. operates as a bank holding company for BCB Community Bank that engages in the provision of banking products and services to businesses and individuals in the United States. The company offers insured deposit products, including savings and club accounts, interest and non-interest-bearing demand accounts, money market accounts, certificates of deposit, and individual retirement accounts. It also provides various loan products, such as commercial and multi-family real estate loans, one-to-four family mortgage loans, commercial business loans, construction loans, home equity loans, and consumer loans. In addition, the company offers retail and commercial banking services comprising wire transfer, money order, safe deposit box, night depository, debit card, online and mobile banking, fraud detection, and automated teller services. The company was founded in 2000 and is based in Bayonne, New Jersey.