Allegiance Bank Stocks (NASDAQ: ABTX – Get a rating) and California BanCorp (NASDAQ: CALB – Get a rating) are both small cap finance companies, but which is the better stock? We’ll compare the two companies based on their risk strength, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.
Institutional and Insider Ownership
54.6% of Allegiance Bancshares shares are held by institutional investors. By comparison, 52.5% of California BanCorp’s stock is held by institutional investors. 5.8% of Allegiance Bancshares shares are held by insiders of the company. By comparison, 10.1% of California BanCorp’s stock is held by company insiders. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company will outperform the market over the long term.
Valuation and benefits
This chart compares revenue, earnings per share (EPS), and valuation of Allegiance Bancshares and California BanCorp.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Allegiance Banking Stocks||$261.75 million||3.35||$81.55 million||$3.70||11.86|
|California BanCorp||$65.47 million||2.63||$13.37 million||$1.72||12.05|
Allegiance Bancshares has higher revenue and profit than California BanCorp. Allegiance Bancshares trades at a lower price-to-earnings ratio than California BanCorp, indicating that it is currently the more affordable of the two stocks.
This is a summary of the current ratings and recommendations for Allegiance Bancshares and California BanCorp, as reported by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Allegiance Banking Stocks||0||0||1||0||3.00|
Allegiance Bancshares currently has a consensus price target of $43.00, suggesting a potential downside of 2.05%. California BanCorp has a consensus price target of $22.00, suggesting a potential upside of 6.13%. Given California BanCorp’s possible higher upside, analysts clearly believe that California BanCorp is more favorable than Allegiance Bancshares.
This table compares the net margins, return on equity and return on assets of Allegiance Bancshares and California BanCorp.
|Net margins||Return on equity||return on assets|
|Allegiance Banking Stocks||28.90%||9.86%||1.09%|
Risk and Volatility
Allegiance Bancshares has a beta of 0.96, which means its price is 4% less volatile than the S&P 500. In comparison, California BanCorp has a beta of 1.11, which means its price is 11% more volatile than the S&P 500.
Allegiance Bancshares beats California BanCorp on 8 out of 12 factors compared between the two stocks.
About Allegiance Bancshares
Allegiance Bancshares, Inc. operates as a bank holding company for Allegiance Bank which provides a range of commercial banking services primarily to small and medium-sized businesses, professionals and individuals. It accepts deposit products, including checking accounts, business accounts, money market accounts, savings accounts and other term deposits; and certificates of deposit. The Company’s loan portfolio includes commercial and industrial loans; commercial real estate loans, including multi-family residential loans; loans for commercial real estate construction and land development; residential real estate loans, such as residential mortgages for 1 to 4 families; residential construction loans; and consumer and other loans. In addition, it offers ATM services, drive-thru and deposit facilities; mobile banking; and telephone, mail and Internet banking. In addition, the Company offers safe deposit boxes, debit cards, cash management and wire transfer services, night deposit services, direct deposits, cashier’s checks and letters of credit. As of December 31, 2021, it operated 27 full-service banking branches, including 26 banking offices in the Houston metro area and one office in Beaumont. The company was founded in 2007 and is based in Houston, Texas.
About California BanCorp
California BanCorp operates as a bank holding company for California Bank of Commerce which provides commercial banking services in California. It accepts various deposit products, including business checks, savings and money market accounts, and certificates of deposit. The company also offers asset-based loans; standby letters of credit; construction and development loans; real estate loans, such as commercial real estate loans and other loans; Small Business Administration (SBA) loans, including SBA 7(a) and SBA 504 loans; consumer loans, such as secured and unsecured installment loans and revolving lines of credit; and commercial and industrial loans, including term loans, working capital, accounts receivable and inventory financing, and other commercial loans to the dental and veterinary industries, entrepreneurs and emerging businesses. Additionally, it provides foreign exchange, treasury and cash management services, as well as online and mobile banking. The company has a full-service California branch located in Contra Costa County, California; and 4 loan production offices in Alameda, Contra Costa, Sacramento and Santa Clara. California BanCorp was incorporated in 2007 and is headquartered in Oakland, California.
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