Critical Comparison: Northrim BanCorp (NASDAQ:NRIM) and City Bank (OTCMKTS:CTBK)

Northrim BanCorp (NASDAQ:NRIM) and City Bank (OTCMKTS:CTBK) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.

Earnings and Valuation

This table compares Northrim BanCorp and City Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northrim BanCorp	$190.82 million	2.72	$36.97 million	$2.81	8.36
City Bank	N/A	N/A	N/A	N/A	N/A

Northrim BanCorp has higher revenue and earnings than City Bank.

Insider and Institutional Ownership

66.0% of Northrim BanCorp shares are owned by institutional investors. 3.9% of Northrim BanCorp shares are owned by insiders. Comparatively, 37.5% of City Bank shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Northrim BanCorp and City Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northrim BanCorp	25.32%	18.12%	1.64%
City Bank	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and recommmendations for Northrim BanCorp and City Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northrim BanCorp	0	0	2	0	3.00
City Bank	0	0	0	0	0.00

Northrim BanCorp presently has a consensus price target of $33.00, indicating a potential upside of 40.40%. Given Northrim BanCorp’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Northrim BanCorp is more favorable than City Bank.

Summary

Northrim BanCorp beats City Bank on 8 of the 9 factors compared between the two stocks.

About Northrim BanCorp

Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals. It operates through two segments, Community Banking and Home Mortgage Lending. The company offers noninterest-bearing checking accounts and interest-bearing time deposits, checking and savings accounts, individual retirement and money market deposit accounts, certificates of deposit, and business sweep accounts. It also provides short and medium-term commercial loans, commercial credit lines, construction and real estate loans, and consumer loans, as well as short-term working capital. In addition, the company offers other services comprising consumer and business online banking, mobile app, and mobile deposits; and debit and credit cards. Further, it provides mobile web and app banking, consumer online account opening, personal finance, online documents, consumer debit cards, business debit cards, my rewards for consumer debit cards, retail lockbox, card control, corporate purchase cards, integrated payables, home equity advantage access cards, telebanking, and automated teller services. Additionally, the company offers personalized checks at account opening, overdraft protection from a savings account, commercial drive-up banking, automatic transfer and payment, People Pay, external transfer, Bill Pay, wire transfer, direct payroll deposit, electronic tax payment, Automated Clearing House origination and receipt, remote deposit capture, account reconciliation and positive pay, merchant, cash management, annuity, and long-term investment portfolio products and services. It also provides investment advisory, trust, wealth management, factoring, and mortgage services. The company was founded in 1990 and is headquartered in Anchorage, Alaska.

About City Bank

As of April 17, 2010, City Bank was acquired by Whidbey Island Bank. City Bank offers commercial banking services. The company was incorporated in 1974 and is headquartered in Lynnwood, Washington.