Bryn Mawr Bank Corporation (BMTC) and Baylake (BYLK) Critical Survey

Baylake (NASDAQ: BYLK) and Bryn Mawr Bank Corporation (NASDAQ:BMTC) are both small-cap banks – nec companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Earnings & Valuation

This table compares Baylake and Bryn Mawr Bank Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Baylake N/A N/A N/A $0.85 20.51
Bryn Mawr Bank Corporation $171.03 million 4.20 $36.03 million $2.25 18.71

Bryn Mawr Bank Corporation has higher revenue and earnings than Baylake. Bryn Mawr Bank Corporation is trading at a lower price-to-earnings ratio than Baylake, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Baylake has a beta of 3.79, meaning that its stock price is 279% more volatile than the S&P 500. Comparatively, Bryn Mawr Bank Corporation has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.

Insider and Institutional Ownership

80.1% of Bryn Mawr Bank Corporation shares are owned by institutional investors. 2.3% of Bryn Mawr Bank Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Baylake and Bryn Mawr Bank Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Baylake 10.34% 4.05% 0.43%
Bryn Mawr Bank Corporation 21.29% 10.15% 1.17%

Analyst Recommendations

This is a breakdown of recent ratings for Baylake and Bryn Mawr Bank Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Baylake 0 0 0 0 N/A
Bryn Mawr Bank Corporation 0 1 2 0 2.67

Bryn Mawr Bank Corporation has a consensus target price of $48.50, indicating a potential upside of 15.20%. Given Bryn Mawr Bank Corporation’s higher possible upside, analysts plainly believe Bryn Mawr Bank Corporation is more favorable than Baylake.

Dividends

Baylake pays an annual dividend of $0.36 per share and has a dividend yield of 2.1%. Bryn Mawr Bank Corporation pays an annual dividend of $0.88 per share and has a dividend yield of 2.1%. Baylake pays out 42.4% of its earnings in the form of a dividend. Bryn Mawr Bank Corporation pays out 39.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bryn Mawr Bank Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Bryn Mawr Bank Corporation beats Baylake on 11 of the 12 factors compared between the two stocks.

About Baylake

Baylake Corp. is a bank holding company. The Company’s primary activities consists of holding the stock of its subsidiary bank, Baylake Bank (the Bank), and providing a range of banking and related business activities through the Bank and its other subsidiaries. The Bank is an independent community bank offering a range of financial services primarily to small businesses and individuals located in its market area. The Bank provides a range of loan, deposit and other banking products and services to its business, individual or retail and municipal customers, which include safe deposit box services, personal and corporate trust services, treasury management, private banking, financial planning and electronic banking services, including mobile banking and eBanc, an Internet banking product for its customers. It offers investment advisory services through Admiral Asset Management, Inc. (Admiral). The Bank conducts its community banking business through over 20 service financial centers.

About Bryn Mawr Bank Corporation

Bryn Mawr Bank Corporation is the bank holding company of the Bryn Mawr Trust Company (the Bank). The Company and its subsidiaries offer a range of personal and business banking services, consumer and commercial loans, equipment leasing, mortgages, insurance and wealth management services, including investment management, trust and estate administration, retirement planning, custody services, and tax planning and preparation from various location across Montgomery, Delaware, Chester, Philadelphia and Dauphin counties of Pennsylvania, and New Castle county in Delaware. The Company’s segments include Banking and Wealth Management. The Banking segment consists of commercial and retail banking. The Wealth Management segment’s activities include trust administration, other related fiduciary services, custody, investment management and advisory services, employee benefits and individual retirement accounts (IRA) administration, estate settlement, tax services and brokerage.

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