BayCom (NASDAQ:BCML) and Horizon Bancorp (NASDAQ:HBNC) Analysis

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Bay Com (NASDAQ: BCMLGet a rating) and Horizon Bancorp (NASDAQ: HBNCGet a rating) are both small cap finance companies, but which is the better investment? We’ll compare the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.

Dividends

BayCom pays an annual dividend of $0.20 per share and has a dividend yield of 1.0%. Horizon Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 3.2%. BayCom pays 10.5% of its profits as a dividend. Horizon Bancorp pays 30.2% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Horizon Bancorp has increased its dividend for 13 consecutive years. Horizon Bancorp is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.

Valuation and benefits

This chart compares the revenue, earnings per share (EPS), and valuation of BayCom and Horizon Bancorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
BayCom $92.88 million 2.83 $20.69 million $1.91 10.31
Horizon Bancorp $257.95 million 3.43 $87.09 million $2.12 9.57

Horizon Bancorp has higher revenues and profits than BayCom. Horizon Bancorp trades at a lower price-to-earnings ratio than BayCom, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

BayCom has a beta of 0.69, suggesting its stock price is 31% less volatile than the S&P 500. Comparatively, Horizon Bancorp has a beta of 1.08, suggesting its stock price is 8% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of BayCom’s and Horizon Bancorp’s current ratings, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
BayCom 0 0 0 0 N / A
Horizon Bancorp 0 0 1 0 3.00

BayCom currently has a consensus target price of $26.00, suggesting a potential upside of 32.05%. Horizon Bancorp has a consensus target price of $22.00, suggesting a potential upside of 8.43%. Given BayCom’s possible higher upside, stock analysts clearly believe that BayCom is more favorable than Horizon Bancorp.

Profitability

This table compares the net margins, return on equity and return on assets of BayCom and Horizon Bancorp.

Net margins Return on equity return on assets
BayCom 21.53% 7.74% 0.89%
Horizon Bancorp 34.40% 13.65% 1.26%

Insider and Institutional Ownership

47.1% of BayCom shares are held by institutional investors. By comparison, 54.4% of Horizon Bancorp’s shares are held by institutional investors. 6.4% of BayCom shares are held by insiders. By comparison, 3.5% of Horizon Bancorp’s shares are held by insiders. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock is poised for long-term growth.

Summary

Horizon Bancorp beats BayCom on 12 out of 16 factors compared between the two stocks.

About BayCom

(Get a rating)

BayCom Corp operates as a bank holding company for United Business Bank which provides various financial services to small and medium businesses, service professionals and individuals. The company offers current, savings, money market and term accounts. It also offers commercial and multi-family real estate loans, including home loans for homeowners and investors; commercial and industrial loans, such as equipment loans and working capital lines of credit; small business administration loans; construction and land loans; agriculture-related loans; and consumer loans including installment loans, secured and unsecured personal lines of credit and overdraft protection. In addition, the Company offers online and mobile banking, ATMs, remote deposit capture, overnight deposit, courier, direct deposit, cash management, wire transfer, automated clearinghouse services, debit cards, cashier’s and traveller’s checks, letters of credit, lockbox, positive payment, reverse positive payment and account reconciliation services, as well as zero balance accounts and accounts transfer, including loan transfer. As of December 31, 2021, it operated through a network of 33 full-service bank branches in Northern and Southern California; Denver, Colorado; Custer, Delta, and Grand Counties, Colorado; and Seattle, Washington and central New Mexico. The company was formerly known as Bay Commercial Bank and changed its name to BayCom Corp in January 2017. BayCom Corp was incorporated in 2004 and is headquartered in Walnut Creek, California.

About Horizon Bancorp

(Get a rating)

Horizon Bancorp, Inc. operates as a bank holding company for Horizon Bank which provides a range of commercial and retail banking services. The company offers various deposits. It also offers commercial and residential real estate, mortgage warehouse and consumer loans. In addition, the Company provides corporate and individual trust and agency services, investment management and real estate investment trust; and sells various insurance products. It operates through a network of 78 full-service offices in northern and central Indiana and southern and central Michigan. Horizon Bancorp, Inc. was founded in 1873 and is headquartered in Michigan City, Indiana.



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