Critical Contrast: Bogota Financial (NASDAQ:BSBK) & Parke Bancorp (NASDAQ:PKBK)

Bogota Financial (NASDAQ:BSBK) and Parke Bancorp (NASDAQ:PKBK) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Profitability

This table compares Bogota Financial and Parke Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bogota Financial	4.72%	1.48%	0.23%
Parke Bancorp	28.04%	13.02%	1.90%

Analyst Ratings

This is a summary of recent ratings for Bogota Financial and Parke Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bogota Financial	0	1	0	0	2.00
Parke Bancorp	0	0	1	0	3.00

Volatility & Risk

Bogota Financial has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500. Comparatively, Parke Bancorp has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Institutional & Insider Ownership

11.6% of Bogota Financial shares are owned by institutional investors. Comparatively, 49.7% of Parke Bancorp shares are owned by institutional investors. 3.7% of Bogota Financial shares are owned by insiders. Comparatively, 13.0% of Parke Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Bogota Financial and Parke Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bogota Financial	$44.78 million	2.47	$2.09 million	$0.17	50.41
Parke Bancorp	$146.08 million	2.43	$37.78 million	$3.50	8.65

Parke Bancorp has higher revenue and earnings than Bogota Financial. Parke Bancorp is trading at a lower price-to-earnings ratio than Bogota Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Parke Bancorp beats Bogota Financial on 11 of the 13 factors compared between the two stocks.

About Bogota Financial

Bogota Financial Corp. operates as the bank holding company for Bogota Savings Bank that provides banking products and services in the United States. It offers deposit accounts, including demand accounts, savings accounts, money market accounts, and certificate of deposit accounts. The company also provides one-to four-family residential real estate loans, and commercial real estate and multi-family loans; consumer loans, such as home equity loans and lines of credit; commercial and industrial loans; and construction loans; and buys, sells, and holds investment securities. It operates through various offices located in Bogota, Hasbrouck Heights, Newark, Oak Ridge, Parsippany, and Teaneck, as well as through a loan production office in Spring Lake, New Jersey. The company was founded in 1893 and is based in Teaneck, New Jersey. Bogota Financial Corp. operates as a subsidiary of Bogota Financial, MHC.

About Parke Bancorp

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.