SmartFinancial (NASDAQ:SMBK) vs. BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP) Critical Review

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

Volatility and Risk

SmartFinancial has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, BCB Bancorp, Inc. (NJ) has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SmartFinancial	12.67%	7.33%	0.71%
BCB Bancorp, Inc. (NJ)	-10.21%	-6.29%	-0.54%

Institutional & Insider Ownership

58.8% of SmartFinancial shares are held by institutional investors. Comparatively, 36.0% of BCB Bancorp, Inc. (NJ) shares are held by institutional investors. 6.9% of SmartFinancial shares are held by insiders. Comparatively, 11.5% of BCB Bancorp, Inc. (NJ) shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for SmartFinancial and BCB Bancorp, Inc. (NJ), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SmartFinancial	0	4	2	1	2.57
BCB Bancorp, Inc. (NJ)	1	4	0	0	1.80

SmartFinancial presently has a consensus price target of $50.42, suggesting a potential upside of 1.12%. BCB Bancorp, Inc. (NJ) has a consensus price target of $8.95, suggesting a potential upside of 3.71%. Given BCB Bancorp, Inc. (NJ)’s higher possible upside, analysts plainly believe BCB Bancorp, Inc. (NJ) is more favorable than SmartFinancial.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SmartFinancial	$210.19 million	4.06	$36.14 million	$3.39	14.71
BCB Bancorp, Inc. (NJ)	$181.51 million	0.86	-$12.53 million	($1.10)	-7.85

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

Summary

SmartFinancial beats BCB Bancorp, Inc. (NJ) on 12 of the 15 factors compared between the two stocks.

About SmartFinancial

SmartFinancial, Inc. operates as the bank holding company for SmartBank that provides various financial services to individuals and corporate customers in Tennessee, Alabama, and Florida. It operates through Commercial Real Estate, Consumer Real Estate, Construction and Land Development, Commercial and Industrial, Leases, and Consumer and Other segments. The company offers noninterest-bearing and interest-bearing checking, interest-bearing demand, savings, money market, time deposit, individual retirement accounts, as well as certificates of deposit. It also provides commercial and residential real estate, consumer real estate, and construction and land development loans; commercial and financial loans and leases; commercial business and mortgage loans; and direct consumer installment, educational, agriculture, and other revolving credit loans; equipment financing, heavy equipment, semis, and trailers loans and leases to small and mid-size companies; letters of credit; and overdraft facilities. In addition, the company offers wealth management, insurance, mortgage origination, and internet and mobile banking services. SmartFinancial, Inc. is headquartered in Knoxville, Tennessee.

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.