Avidbank (NASDAQ:AVBH – Get Free Report) and Timberland Bancorp (NASDAQ:TSBK – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.
Risk & Volatility
Avidbank has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Timberland Bancorp has a beta of 0.31, suggesting that its stock price is 69% less volatile than the S&P 500.
Insider & Institutional Ownership
15.9% of Avidbank shares are owned by institutional investors. Comparatively, 65.5% of Timberland Bancorp shares are owned by institutional investors. 9.6% of Avidbank shares are owned by company insiders. Comparatively, 3.6% of Timberland Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Avidbank and Timberland Bancorp, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avidbank | 0 | 1 | 3 | 1 | 3.00 |
| Timberland Bancorp | 0 | 0 | 0 | 1 | 4.00 |
Avidbank presently has a consensus price target of $40.00, suggesting a potential upside of 16.36%. Given Avidbank’s higher probable upside, research analysts clearly believe Avidbank is more favorable than Timberland Bancorp.
Profitability
This table compares Avidbank and Timberland Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Avidbank | 20.02% | 11.90% | 1.32% |
| Timberland Bancorp | 26.46% | 11.72% | 1.55% |
Earnings and Valuation
This table compares Avidbank and Timberland Bancorp”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Avidbank | $151.76 million | 2.49 | -$19.55 million | $3.14 | 10.95 |
| Timberland Bancorp | $114.63 million | 3.23 | $29.16 million | $3.99 | 11.93 |
Timberland Bancorp has lower revenue, but higher earnings than Avidbank. Avidbank is trading at a lower price-to-earnings ratio than Timberland Bancorp, indicating that it is currently the more affordable of the two stocks.
Summary
Timberland Bancorp beats Avidbank on 8 of the 14 factors compared between the two stocks.
About Avidbank
Avidbank Holdings, Inc. operates as a bank holding company for Avidbank that provides financial products and services to small and middle-market businesses, professionals, and individuals in the Santa Clara, San Mateo, and San Francisco counties. It offers business and personal deposit products, such as checking, money market, and savings accounts; and certificates of deposit. The company also provides personal lending products include secured and unsecured lines of credit, home equity lines of credit, remodel and new home construction loans, and term loans; corporate banking comprises working capital lines of credit, equipment loans, acquisition financing, shareholder buyouts, ESOP loans, and owner-occupied real estate loans; and commercial real estate lending, such as permanent loans and bridge financing products. In addition, it offers construction lending products, including land acquisition loans, pre-development loans, construction spec SFD, owner-occupied SFD, condominiums, subdivision, unsecured business lines, real estate bridge loans, and RLOC Â real estate secured loans. Further, the company provides various financing solutions, such as structured finance, venture lending, asset-based lending, and sponsor finance. Additionally, it offers various services, such as automated clearing house payments and collections, bill pay, wire transfer, lockbox, merchant, remote deposit capture, ATM/debit cards, credit cards, business courier, cash management, and notary services, as well as online and mobile banking. The company was formerly known as Peninsula Bank Holding Co. and changed its name to Avidbank Holdings, Inc. in August 2011. Avidbank Holdings, Inc. was founded in 2003 and is headquartered in San Jose, California.
About Timberland Bancorp
Timberland Bancorp, Inc. operates as the bank holding company for Timberland Bank that provides various community banking services in Washington. It offers various deposit products, including money market deposit, checking, and regular savings accounts, as well as certificates of deposit. The company also provides one-to four-family residential, multi-family, and commercial real estate loans; and construction lending products, such as custom and owner/builder, speculative one- to four-family, commercial, multi-family, land development, and land development. In addition, it offers consumer loans comprising home equity lines of credit and second mortgage loans, automobile loans, boat loans, motorcycle loans, recreational vehicle loans, savings account loans, and unsecured loans; and commercial business loans. Timberland Bancorp, Inc. was founded in 1915 and is headquartered in Hoquiam, Washington.
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