Analyzing Chain Bridge Bancorp (NYSE:CBNA) & OceanFirst Financial (NASDAQ:OCFC)

Chain Bridge Bancorp (NYSE:CBNA) and OceanFirst Financial (NASDAQ:OCFC) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.

Profitability

This table compares Chain Bridge Bancorp and OceanFirst Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chain Bridge Bancorp	42.06%	18.68%	1.68%
OceanFirst Financial	5.28%	6.55%	0.72%

Risk & Volatility

Chain Bridge Bancorp has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, OceanFirst Financial has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Insider & Institutional Ownership

71.0% of OceanFirst Financial shares are held by institutional investors. 25.4% of Chain Bridge Bancorp shares are held by company insiders. Comparatively, 5.4% of OceanFirst Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Chain Bridge Bancorp and OceanFirst Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chain Bridge Bancorp	$59.32 million	5.66	$20.24 million	$5.00	10.23
OceanFirst Financial	$519.89 million	3.38	$70.98 million	$0.72	25.28

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

Analyst Recommendations

This is a summary of recent ratings for Chain Bridge Bancorp and OceanFirst Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chain Bridge Bancorp	0	4	1	0	2.20
OceanFirst Financial	0	4	0	0	2.00

Chain Bridge Bancorp currently has a consensus target price of $47.50, suggesting a potential downside of 7.16%. OceanFirst Financial has a consensus target price of $19.00, suggesting a potential upside of 4.37%. Given OceanFirst Financial’s higher probable upside, analysts plainly believe OceanFirst Financial is more favorable than Chain Bridge Bancorp.

Summary

Chain Bridge Bancorp beats OceanFirst Financial on 8 of the 14 factors compared between the two stocks.

About Chain Bridge Bancorp

Chain Bridge Bancorp, Inc. operates as a Delaware-chartered bank holding company for Chain Bridge Bank, National Association that provides commercial and personal banking, and trust services in the United States. Its deposit products include non-interest-bearing and interest-bearing checking accounts, savings accounts, and money market accounts. The company’s loan portfolio comprises of residential and commercial real estate loans, commercial loans, and consumer loans. It also provides treasury management, payments, trusts and estate administration, wealth management, and asset custody services. The company was incorporated in 2006 and is headquartered in McLean, Virginia.

About OceanFirst Financial

OceanFirst Financial Corp. operates as the bank holding company for OceanFirst Bank N.A. that provides community banking services to retail and commercial customers. It accepts money market accounts, savings accounts, interest-bearing checking accounts, non-interest-bearing accounts, and time deposits, that includes brokered deposits to retail, government, and business customers. The company also offers commercial real estate, multi-family, land loans, construction, and commercial and industrial loans; fixed-rate and adjustable-rate mortgage loans that are secured by one-to-four family residences; and consumer loans, such as home equity loans and lines of credit, student loans, overdraft line of credit, loans on savings accounts, and other consumer loans. In addition, it invests in mortgage-backed securities, securities issued by the U.S. Government and agencies, corporate securities, and other investments. Further, the company offers bankcard, trust and asset management services; and bank owned life insurance products. The company was founded in 1902 and is based in Red Bank, New Jersey.