California Business Bank (OTCMKTS:CABB) and S&T Bancorp (NASDAQ:STBA) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.
Insider & Institutional Ownership
59.4% of S&T Bancorp shares are owned by institutional investors. 2.2% of S&T Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares California Business Bank and S&T Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| California Business Bank | N/A | N/A | N/A |
| S&T Bancorp | 10.67% | 7.48% | 0.93% |
Earnings & Valuation
This table compares California Business Bank and S&T Bancorp’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| California Business Bank | N/A | N/A | N/A | N/A | N/A |
| S&T Bancorp | $380.18 million | 3.30 | $21.04 million | $1.78 | 17.89 |
S&T Bancorp has higher revenue and earnings than California Business Bank.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for California Business Bank and S&T Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| California Business Bank | 0 | 0 | 0 | 0 | N/A |
| S&T Bancorp | 0 | 2 | 1 | 0 | 2.33 |
S&T Bancorp has a consensus target price of $29.00, indicating a potential downside of 8.92%. Given S&T Bancorp’s higher probable upside, analysts clearly believe S&T Bancorp is more favorable than California Business Bank.
Volatility & Risk
California Business Bank has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500. Comparatively, S&T Bancorp has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.
Summary
S&T Bancorp beats California Business Bank on 9 of the 9 factors compared between the two stocks.
About California Business Bank
California Business Bank provides various financial products and services for small businesses and entrepreneurs. The company offers various personal and business deposit products; and business and commercial loans comprising SBA, commercial and industrial, and commercial real estate loans. It also provides online and mobile banking, mobile deposit, bill pay, and other services. The company was incorporated in 2005 and is headquartered in Irvine, California.
About S&T Bancorp
S&T Bancorp, Inc. operates as the bank holding company for S&T Bank that provides retail and commercial banking products and services. The company operates through six segments: Commercial Real Estate, Commercial and Industrial, Business banking, Commercial Construction, Consumer Real Estate, and Other Consumer. The company accepts time and demand deposits; and offers commercial and consumer loans, cash management services, and brokerage and trust services, as well as acts as guardian and custodian of employee benefits. It also manages private investment accounts for individuals and institutions. In addition, the company distributes life insurance and long-term disability income insurance products, as well as offers title insurance agency services to commercial customers. As of December 31, 2020, it operated 76 banking branches and 5 loan production offices located in Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York. S&T Bancorp, Inc. was founded in 1902 and is headquartered in Indiana, Pennsylvania.
