Chemical Bank (CHFC) and BSB Bancorp (BLMT) Critical Comparison

Chemical Bank (NASDAQ: CHFC) and BSB Bancorp (NASDAQ:BLMT) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Volatility & Risk

Chemical Bank has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, BSB Bancorp has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500.

Dividends

Chemical Bank pays an annual dividend of $1.12 per share and has a dividend yield of 2.0%. BSB Bancorp does not pay a dividend. Chemical Bank pays out 36.6% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Chemical Bank and BSB Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chemical Bank $776.15 million 5.19 $149.52 million $3.06 18.43
BSB Bancorp $80.77 million 3.96 $14.38 million N/A N/A

Chemical Bank has higher revenue and earnings than BSB Bancorp.

Profitability

This table compares Chemical Bank and BSB Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chemical Bank 21.15% 9.10% 1.26%
BSB Bancorp 19.46% 10.94% 0.75%

Insider and Institutional Ownership

80.7% of Chemical Bank shares are owned by institutional investors. Comparatively, 48.2% of BSB Bancorp shares are owned by institutional investors. 1.4% of Chemical Bank shares are owned by company insiders. Comparatively, 14.4% of BSB Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Chemical Bank and BSB Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chemical Bank 1 2 3 0 2.33
BSB Bancorp 0 0 0 0 N/A

Chemical Bank presently has a consensus target price of $58.80, suggesting a potential upside of 4.24%. Given Chemical Bank’s higher possible upside, equities analysts clearly believe Chemical Bank is more favorable than BSB Bancorp.

Summary

Chemical Bank beats BSB Bancorp on 11 of the 14 factors compared between the two stocks.

About Chemical Bank

Chemical Financial Corporation operates as a financial holding company of Chemical Bank that offers banking and fiduciary products and services to residents and business customers. It offers business and personal checking accounts, savings and individual retirement accounts, time deposit instruments, electronically accessed banking products, residential and commercial real estate financing, commercial lending, consumer financing, debit cards, safe deposit box, money transfer, automated teller machines, insurance and investment products, corporate and personal wealth management, and mortgage banking and other banking services. The company also offers mutual funds, annuity products, and market securities; trust, investment management, and custodial services; financial and estate planning; and retirement and employee benefit programs. As of January 23, 2018, it operated through 212 banking offices located in Michigan, northeast Ohio, and northern Indiana. The company has 7 loan production offices and approximately 245 automated teller machines. Chemical Financial Corporation was founded in 1917 and is headquartered in Midland, Michigan.

About BSB Bancorp

BSB Bancorp, Inc. operates as the holding company for Belmont Savings Bank that provides commercial and retail banking services to small businesses, municipalities, nonprofit organizations, and other customers in the United States. Its deposit products include relationship checking accounts for consumers and businesses, passbook and statement savings accounts, certificates of deposit, money market accounts, interest on lawyer trust accounts, and individual retirement accounts, as well as commercial, municipal, and regular checking accounts. The company's loan portfolio comprises one to four family residential mortgage loans, commercial real estate loans, multi-family real estate loans, home equity lines of credit, indirect automobile loans, commercial business loans, construction loans and investment securities, other consumer loans, and second mortgage loans. BSB Bancorp, Inc. also offers lockbox, online and mobile banking, global payments, and cash management services. It operates through six full-service branch offices located in Belmont, Watertown, Waltham, Newton, and Cambridge in Southeast Middlesex County, Massachusetts. The company was incorporated in 2011 and is headquartered in Belmont, Massachusetts.

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