Direct comparison between Byline Bancorp (NYSE:BY) and Bank of the James Financial Group (NASDAQ:BOTJ)


Bank of the James Financial Group (NASDAQ:BOTJ – Get Rating) and Byline Bancorp (NYSE:BY – Get Rating) are both small cap finance companies, but which is the better investment? We’ll compare the two companies based on their dividend strength, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares the net margins, return on equity and return on assets of Bank of the James Financial Group and Byline Bancorp.

Net margins Return on equity return on assets
James Financial Group Bank 19.19% 11.47% 0.83%
Parline Bancorp 28.40% 12.85% 1.58%

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of Bank of the James Financial Group and Byline Bancorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
James Financial Group Bank $40.39 million 1.44 $7.59 million $1.66 7.42
Parline Bancorp $323.18 million 2.79 $92.79 million $2.42 9.86

Byline Bancorp has higher revenue and profit than Bank of the James Financial Group. Bank of the James Financial Group trades at a lower price-to-earnings ratio than Byline Bancorp, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

29.0% of the shares of the Bank of the James Financial Group are held by institutional investors. By comparison, 44.2% of Byline Bancorp’s shares are held by institutional investors. 13.2% of the shares of the Bank of James Financial Group are held by insiders. By comparison, 35.0% of Byline Bancorp’s shares are held by insiders. Strong institutional ownership indicates that hedge funds, large money managers, and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of the current ratings of Bank of the James Financial Group and Byline Bancorp, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
James Financial Group Bank 0 0 0 0 N / A
Parline Bancorp 0 1 2 0 2.67

Byline Bancorp has a consensus target price of $27.50, indicating a potential upside of 15.26%. Given Byline Bancorp’s likely higher upside, analysts clearly believe that Byline Bancorp is more favorable than Bank of the James Financial Group.

Risk and Volatility

Bank of the James Financial Group has a beta of 0.92, which means its stock price is 8% less volatile than the S&P 500. By comparison, Byline Bancorp has a beta of 1.24, which means its price is 24% more volatile than the S&P. 500.

Dividends

Bank of the James Financial Group pays an annual dividend of $0.28 per share and has a dividend yield of 2.3%. Byline Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 1.5%. Bank of the James Financial Group pays 16.9% of its profits as a dividend. Byline Bancorp pays 14.9% of its profits 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. Bank of the James Financial Group has increased its dividend for 2 consecutive years and Byline Bancorp has increased its dividend for 1 consecutive year. Bank of the James Financial Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Byline Bancorp beats Bank of the James Financial Group on 14 out of 16 factors compared between the two stocks.

About James Financial Group Bank

(Get a rating)

Bank of the James Financial Group, Inc. operates as a bank holding company for Bank of the James which provides general retail and commercial banking services to individuals, businesses, associations and organizations, as well as governmental authorities in Virginia, in the USA. It offers checking, savings, individual retirement and health savings accounts, as well as other term deposits, including money market accounts and certificates of deposit. The company also offers loans to small and medium enterprises for the purchase of equipment, the upgrading of facilities, the acquisition of inventory and various working capital purposes; loans for commercial and residential construction and development; commercial real estate mortgage loans; residential mortgages; and secured and unsecured consumer loans, such as lines of credit and overdraft lines of credit, as well as personal, auto, installment, demand, and home equity loans , family or domestic. In addition, it provides other banking services, including safety deposit boxes, travelers checks, direct deposit of payroll and social security checks, automatic drafts for various accounts, cash management and merchant services of credit card. Additionally, the Company offers securities brokerage and investment services; and telephone and Internet banking services including online bill payment, as well as acting as an agent for insurance and annuity products. It operates through a network of 16 full-service offices, 2 limited-service offices and 1 residential mortgage origination office. The company was founded in 1998 and is based in Lynchburg, Virginia.

About Byline Bancorp

(Get a rating)

Byline Bancorp logoByline Bancorp, Inc. operates as a banking holding company for Byline Bank which provides various banking products and services to small and medium-sized businesses, commercial and financial real estate sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest bearing accounts, money market demand accounts, savings accounts, interest bearing checking accounts and term deposits; ATM cards and debit cards; and online, mobile and text banking, as well as commercial deposits. The company also offers term loans, revolving lines of credit and construction finance services; top-tier, secure financing solutions for lower-middle-market companies backed by private equity; the United States Department of Agriculture Small Business Administration and Loans; and cash management products and services. In addition, it offers financing solutions for equipment manufacturers and their end users; and investment, trust and wealth management services which include trustee and executor services, financial planning solutions, investment advisory services and private banking services for foundations and endowments, and wealthy individuals. It operates through 43 branches in the Chicago metropolitan area and one branch in Brookfield, Wisconsin. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.



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