Critical Survey: Redwood Capital Bancorp (OTCMKTS:RWCB) & Carver Bancorp (NASDAQ:CARV)

Redwood Capital Bancorp (OTCMKTS:RWCB) and Carver Bancorp (NASDAQ:CARV) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Redwood Capital Bancorp	N/A	N/A	N/A
Carver Bancorp	-34.89%	-171.55%	-1.82%

Earnings & Valuation

This table compares Redwood Capital Bancorp and Carver Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redwood Capital Bancorp	N/A	N/A	N/A	$0.43	76.74
Carver Bancorp	$22.74 million	0.46	-$13.74 million	($1.29)	-1.31

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

Institutional & Insider Ownership

18.2% of Carver Bancorp shares are held by institutional investors. 1.3% of Carver Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Redwood Capital Bancorp and Carver Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redwood Capital Bancorp	0	0	0	0	0.00
Carver Bancorp	1	0	0	0	1.00

Summary

Redwood Capital Bancorp beats Carver Bancorp on 5 of the 9 factors compared between the two stocks.

About Redwood Capital Bancorp

Redwood Capital Bancorp operates as the bank holding company for Redwood Capital Bank that provides various banking products and services to individuals and businesses in California. The company accepts checking, savings, and money market accounts, as well as certificates of deposit. It also offers real estate loans, home equity lines of credit, construction and development loans, term loans for machinery and equipment, and lines of credit for working capital, as well as industrial, agricultural, and personal credits. In addition, the company provides credit and debit cards, re-order checks, and online and mobile banking services. Redwood Capital Bancorp was founded in 2004 and is based in Eureka, California.

About Carver Bancorp

Carver Bancorp, Inc. operates as the holding company for Carver Federal Savings Bank that provides consumer and commercial banking services for consumers, businesses, non-profit organizations, and governmental and quasi-governmental agencies primarily in New York. It accepts various deposit products, including demand, savings, and time deposits; passbook and statement accounts, and certificates of deposit; and individual retirement accounts. The company provides lending products, such as one-to-four family residential, multifamily real estate, and commercial real estate lending; and construction, business and small business administration, and consumer and other loans. In addition, it offers other consumer and commercial banking products and services, including debit cards, online account opening and banking, online bill pay, and telephone banking, as well as check cashing, wire transfer, bill payment, reloadable prepaid card, and money order services. Carver Bancorp, Inc. was founded in 1948 and is headquartered in New York, New York.