Southern Michigan Bancorp (OTCMKTS:SOMC) versus BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP) Head to Head Analysis

Southern Michigan Bancorp (OTCMKTS:SOMC) and BCB Bancorp, Inc. (NJ) (NASDAQ:BCBP) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Dividends

Southern Michigan Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 2.6%. BCB Bancorp, Inc. (NJ) pays an annual dividend of $0.32 per share and has a dividend yield of 3.2%. Southern Michigan Bancorp pays out 25.9% of its earnings in the form of a dividend. BCB Bancorp, Inc. (NJ) pays out -457.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. BCB Bancorp, Inc. (NJ) is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Southern Michigan Bancorp and BCB Bancorp, Inc. (NJ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southern Michigan Bancorp	13.08%	10.54%	0.75%
BCB Bancorp, Inc. (NJ)	0.39%	0.24%	0.02%

Risk & Volatility

Southern Michigan Bancorp has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500. Comparatively, BCB Bancorp, Inc. (NJ) has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Insider & Institutional Ownership

36.0% of BCB Bancorp, Inc. (NJ) shares are owned by institutional investors. 11.5% of BCB Bancorp, Inc. (NJ) shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Southern Michigan Bancorp and BCB Bancorp, Inc. (NJ)”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southern Michigan Bancorp	$93.18 million	1.32	$12.22 million	$2.63	10.08
BCB Bancorp, Inc. (NJ)	$101.60 million	1.68	-$12.53 million	($0.07)	-140.86

Southern Michigan Bancorp has higher earnings, but lower revenue than BCB Bancorp, Inc. (NJ). BCB Bancorp, Inc. (NJ) is trading at a lower price-to-earnings ratio than Southern Michigan Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Southern Michigan Bancorp and BCB Bancorp, Inc. (NJ), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southern Michigan Bancorp	0	0	0	0	0.00
BCB Bancorp, Inc. (NJ)	1	3	0	0	1.75

BCB Bancorp, Inc. (NJ) has a consensus price target of $10.00, suggesting a potential upside of 1.42%. Given BCB Bancorp, Inc. (NJ)’s stronger consensus rating and higher possible upside, analysts plainly believe BCB Bancorp, Inc. (NJ) is more favorable than Southern Michigan Bancorp.

Summary

BCB Bancorp, Inc. (NJ) beats Southern Michigan Bancorp on 9 of the 15 factors compared between the two stocks.

About Southern Michigan Bancorp

Southern Michigan Bancorp, Inc. operates as the bank holding company for Southern Michigan Bank & Trust that provides a range of commercial banking services to individuals, businesses, institutions, and governmental agencies primarily in the southwest Michigan communities. Its deposit products include interest and non-interest checking, savings, and various types of money market accounts; time, savings, and demand deposits; and certificates of deposit and IRAs. The company also provides home mortgages and equity loans, home equity lines of credit, VA and FHA home loans, USDA rural development loans, and auto/personal loans; business loans, such as lines of credit, term loans, commercial real estate loans, commercial and industrial loans, agriculture loans, letters of credit, small business administration loans, and capital access loans; industrial, construction, real estate, and inventory loans; and consumer lending products comprising direct and indirect loans to purchasers of residential real property and consumer goods. In addition, it offers trust and investment services that include investment management, trustee, IRA rollovers and retirement plan, institutional and personal custody, estate settlement, wealth management, estate and wealth transfer planning assistance, charitable gift planning assistance, and cash management custody services; and safe deposit box and automated teller machine services. Further, the company provides bill pay, e-statements, ACH, wire transfer, remote deposit capture, and insurance services, as well as ATM, debit, credit, and gift cards. The company was founded in 1871 and is based in Coldwater, Michigan.

About BCB Bancorp, Inc. (NJ)

BCB Bancorp, Inc. operates as a bank holding company for BCB Community Bank that engages in the provision of banking products and services to businesses and individuals in the United States. The company offers insured deposit products, including savings and club accounts, interest and non-interest-bearing demand accounts, money market accounts, certificates of deposit, and individual retirement accounts. It also provides various loan products, such as commercial and multi-family real estate loans, one-to-four family mortgage loans, commercial business loans, construction loans, home equity loans, and consumer loans. In addition, the company offers retail and commercial banking services comprising wire transfer, money order, safe deposit box, night depository, debit card, online and mobile banking, fraud detection, and automated teller services. The company was founded in 2000 and is based in Bayonne, New Jersey.