Contrasting First Foundation (NYSE:FFWM) & California BanCorp (NASDAQ:BCAL)

First Foundation (NYSE:FFWM) and California BanCorp (NASDAQ:BCAL) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Valuation & Earnings

This table compares First Foundation and California BanCorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Foundation	$588.36 million	0.84	-$155.16 million	($1.89)	-3.16
California BanCorp	$180.18 million	3.15	$63.06 million	$1.93	9.09

California BanCorp has lower revenue, but higher earnings than First Foundation. First Foundation is trading at a lower price-to-earnings ratio than California BanCorp, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

First Foundation has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, California BanCorp has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for First Foundation and California BanCorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Foundation	1	2	2	1	2.50
California BanCorp	1	0	3	1	2.80

First Foundation presently has a consensus price target of $6.58, suggesting a potential upside of 10.37%. California BanCorp has a consensus price target of $20.50, suggesting a potential upside of 16.81%. Given California BanCorp’s stronger consensus rating and higher possible upside, analysts plainly believe California BanCorp is more favorable than First Foundation.

Profitability

This table compares First Foundation and California BanCorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Foundation	-26.37%	1.09%	0.08%
California BanCorp	26.60%	11.36%	1.57%

Insider & Institutional Ownership

73.1% of First Foundation shares are held by institutional investors. Comparatively, 55.4% of California BanCorp shares are held by institutional investors. 9.5% of First Foundation shares are held by insiders. Comparatively, 14.8% of California BanCorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

California BanCorp beats First Foundation on 12 of the 14 factors compared between the two stocks.

About First Foundation

First Foundation Inc., through its subsidiaries, provides personal banking, business banking, and private wealth management services in the United States. It operates through two segments, Banking and Wealth Management. The company offers a range of bank deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificate of deposits; and loan products consisting of multifamily and single family residential real estate loans, commercial real estate loans, and commercial term loans and line of credits, as well as consumer loans, such as personal installment loans and line of credits, and home equity line of credits. It also provides various specialized services comprising trust services, internet and mobile banking, remote deposit capture services, merchant credit card services, ATM cards, Visa debit cards, and business sweep accounts, as well as insurance brokerage services and equipment financing solutions. In addition, the company offers investment management and financial planning services; treasury management services; advisory and coordination services in the areas of estate planning, retirement planning, and charitable and business ownership issues; and financial, investment, and economic advisory and related services. Further, it provides support services, including the processing and transmission of financial and economic data for charitable organizations. The company operates through a network of 28 branch offices and 3 loan production offices in California, Nevada, Texas, and Hawaii. First Foundation Inc. was founded in 1985 and is headquartered in Dallas, Texas.

About California BanCorp

Southern California Bancorp operates as the holding company for Bank of Southern California, N.A. that provides various financial products to individuals, professionals, and small-to medium-sized businesses. The company offers checking, personal and business savings, and money market accounts, as well as certificates of deposit. It also provides home equity lines of credit, business loans and lines of credit, commercial real estate and construction loans, small business administration loans, letters of credit, and personal and business credit cards. In addition, the company provides cash vault, sweep accounts, and remote deposit capture services; online and mobile banking services; courier service; lockbox services; and merchant services. It operates branches in San Diego, Orange, Ventura, Los Angeles, and Riverside counties, as well as the Inland Empire. The company was founded in 2001 and is headquartered in San Diego, California.