Parke Bancorp (NASDAQ:PKBK – Get Free Report) and Coastal Financial (NASDAQ:CCB – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.
Risk & Volatility
Parke Bancorp has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Coastal Financial has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.
Institutional and Insider Ownership
49.7% of Parke Bancorp shares are owned by institutional investors. Comparatively, 59.2% of Coastal Financial shares are owned by institutional investors. 13.0% of Parke Bancorp shares are owned by insiders. Comparatively, 13.5% of Coastal Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Parke Bancorp and Coastal Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Parke Bancorp | 30.55% | 13.91% | 2.08% |
| Coastal Financial | -0.50% | -0.75% | -0.07% |
Valuation and Earnings
This table compares Parke Bancorp and Coastal Financial”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Parke Bancorp | $93.60 million | 4.10 | $37.78 million | $3.97 | 8.21 |
| Coastal Financial | $457.95 million | 1.45 | $46.99 million | ($0.27) | -160.96 |
Coastal Financial has higher revenue and earnings than Parke Bancorp. Coastal Financial is trading at a lower price-to-earnings ratio than Parke Bancorp, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Parke Bancorp and Coastal Financial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Parke Bancorp | 0 | 0 | 1 | 0 | 3.00 |
| Coastal Financial | 1 | 1 | 5 | 0 | 2.57 |
Coastal Financial has a consensus target price of $91.83, indicating a potential upside of 111.31%. Given Coastal Financial’s higher probable upside, analysts plainly believe Coastal Financial is more favorable than Parke Bancorp.
About Parke Bancorp
Parke Bancorp, Inc. is the bank holding company for Parke Bank, a community bank headquartered in Washington Township, New Jersey. Founded in 1999, the company serves customers in southern New Jersey and the greater Philadelphia area. Parke Bank offers commercial and consumer banking services, including business and real estate lending, residential mortgage loans, deposit accounts, and online banking. Its lending activities include financing for commercial properties and construction, as well as loans to businesses and individuals.
About Coastal Financial
Coastal Financial Corporation is a bank holding company and the parent of Coastal Community Bank, a community bank headquartered in Everett, Washington. Through the bank, it provides deposit accounts, commercial and consumer lending, cash management, and other banking services to individuals and businesses. The company also operates CCBX, its banking-as-a-service business, which works with fintech and other nonbank partners to offer financial products through their platforms. This business extends Coastal’s services beyond its traditional community banking footprint.
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