Banking

Head-To-Head Survey: 1st Constitution Bancorp (NASDAQ:FCCY) & Bancorp 34 (OTCMKTS:BCTF)

1st Constitution Bancorp (NASDAQ:FCCY) and Bancorp 34 (OTCMKTS:BCTF) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Insider & Institutional Ownership

36.8% of 1st Constitution Bancorp shares are owned by institutional investors. Comparatively, 0.9% of Bancorp 34 shares are owned by institutional investors. 14.6% of 1st Constitution Bancorp shares are owned by company insiders. Comparatively, 7.4% of Bancorp 34 shares are owned by company 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.

Profitability

This table compares 1st Constitution Bancorp and Bancorp 34’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
1st Constitution Bancorp 19.11% 9.18% 0.95%
Bancorp 34 8.80% 4.06% 0.45%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for 1st Constitution Bancorp and Bancorp 34, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
1st Constitution Bancorp 0 0 1 0 3.00
Bancorp 34 0 0 0 0 N/A

1st Constitution Bancorp currently has a consensus price target of $15.00, suggesting a potential downside of 7.52%. Given 1st Constitution Bancorp’s higher probable upside, research analysts plainly believe 1st Constitution Bancorp is more favorable than Bancorp 34.

Risk and Volatility

1st Constitution Bancorp has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Bancorp 34 has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Dividends

1st Constitution Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 2.2%. Bancorp 34 pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. 1st Constitution Bancorp pays out 21.4% of its earnings in the form of a dividend. Bancorp 34 has raised its dividend for 1 consecutive years.

Valuation and Earnings

This table compares 1st Constitution Bancorp and Bancorp 34’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
1st Constitution Bancorp $68.33 million 2.43 $13.63 million $1.68 9.65
Bancorp 34 $19.97 million 1.80 $710,000.00 N/A N/A

1st Constitution Bancorp has higher revenue and earnings than Bancorp 34.

Summary

1st Constitution Bancorp beats Bancorp 34 on 11 of the 14 factors compared between the two stocks.

1st Constitution Bancorp Company Profile

1st Constitution Bancorp operates as the bank holding company for 1st Constitution Bank that provides commercial and retail banking products and services in the central, coastal, and northeastern areas of New Jersey. The company offers deposit products, including interest bearing demand deposits, such as interest-bearing checking accounts, money market accounts, and NOW accounts; and non-interest bearing demand, savings, and time deposits, as well as certificate of deposits. It also provides commercial loans, including term loans, lines of credit, and loans secured by equipment and receivables; secured and unsecured short-to-medium term commercial loans to businesses for working capital, business expansion, and the purchase of equipment and machinery; and commercial construction financing to real estate developers for the acquisition, development, and construction of residential and commercial properties. In addition, the company offers residential first mortgage loans secured by owner-occupied property; construction loans; reverse mortgages; second mortgage home improvement loans; home equity lines of credit; and non-residential consumer loans for automobiles, recreation vehicles, and boats, as well as secured and unsecured personal loans, and deposit account secured loans, as well as online and mobile banking services. It serves corporations, individuals, partnerships, and other community organizations, as well as small businesses and not-for-profit organizations. As of October 23, 2020, the company operated 26 branches in Asbury Park, Cranbury, Fair Haven, Fort Lee, Freehold, Hamilton, Hightstown, Hillsborough, Hopewell, Jackson, Jamesburg, Lawrenceville, Little Silver, Long Branch, Manahawkin, Neptune City, Perth Amboy, Plainsboro, Princeton, Rocky Hill, Rumson, Shrewsbury, and Toms River, New Jersey. 1st Constitution Bancorp was founded in 1989 and is based in Cranbury, New Jersey.

Bancorp 34 Company Profile

Bancorp 34, Inc. operates as the holding company for Bank 34 that offers various banking services to individuals and businesses in the United States. It accepts various deposit products, such as savings accounts, checking accounts, money market accounts, demand deposits, NOW accounts, and certificates of deposit, as well as commercial checking accounts and related services, including online cash management. The company also provides commercial real estate, multi-family real estate, commercial and industrial, construction and land development, one- to four-family residential real estate, and consumer and other loans, as well as offers credit and debit cards. It operates four full-service banking centers, including one each in Otero and Dona Ana Counties, New Mexico; and two in Maricopa County, Arizona. Bancorp 34, Inc. was founded in 1934 and is headquartered in Alamogordo, New Mexico.

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