Analyzing Allegiance Bancshares (NASDAQ:ABTX) & California BanCorp (NASDAQ:CALB)

Allegiance Bancshares (NASDAQ:ABTXGet Rating) and California BanCorp (NASDAQ:CALBGet Rating) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

54.6% of Allegiance Bancshares shares are owned by institutional investors. Comparatively, 52.5% of California BanCorp shares are owned by institutional investors. 5.8% of Allegiance Bancshares shares are owned by company insiders. Comparatively, 10.1% of California BanCorp 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.

Valuation and Earnings

This table compares Allegiance Bancshares and California BanCorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allegiance Bancshares $261.75 million 3.35 $81.55 million $3.70 11.86
California BanCorp $65.47 million 2.63 $13.37 million $1.72 12.05

Allegiance Bancshares has higher revenue and earnings than California BanCorp. Allegiance Bancshares is trading at a lower price-to-earnings ratio than California BanCorp, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Allegiance Bancshares and California BanCorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allegiance Bancshares 0 0 1 0 3.00
California BanCorp 0 0 1 0 3.00

Allegiance Bancshares currently has a consensus price target of $43.00, suggesting a potential downside of 2.05%. California BanCorp has a consensus price target of $22.00, suggesting a potential upside of 6.13%. Given California BanCorp’s higher possible upside, analysts clearly believe California BanCorp is more favorable than Allegiance Bancshares.

Profitability

This table compares Allegiance Bancshares and California BanCorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allegiance Bancshares 28.90% 9.86% 1.09%
California BanCorp 20.18% 9.49% 0.72%

Risk & Volatility

Allegiance Bancshares has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, California BanCorp has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Summary

Allegiance Bancshares beats California BanCorp on 8 of the 12 factors compared between the two stocks.

About Allegiance Bancshares

(Get Rating)

Allegiance Bancshares, Inc. operates as the bank holding company for Allegiance Bank that provides a range of commercial banking services primarily to small and medium-sized businesses, professionals, and individual customers. It accepts deposit products, including checking accounts, commercial accounts, money market accounts, savings accounts, and other time deposits; and certificates of deposit. The company's loan portfolio comprises commercial and industrial loans; commercial real estate loans, including multi-family residential loans; commercial real estate construction and land development loans; residential real estate loans, such as 1-4 family residential mortgage loans; residential construction loans; and consumer and other loans. In addition, it offers automated teller machine services, drive-through services, and depository facilities; mobile banking services; and telephone, mail, and Internet banking services. Further, the company provides safe deposit boxes, debit cards, cash management and wire transfer services, night depository services, direct deposits, cashier's checks, and letters of credit. As of December 31, 2021, it operated 27 full-service banking locations, including 26 bank offices in the Houston metropolitan area and one office in Beaumont. The company was founded in 2007 and is headquartered in Houston, Texas.

About California BanCorp

(Get Rating)

California BanCorp operates as the bank holding company for California Bank of Commerce that provides commercial banking services in California. It accepts various deposit products, including commercial checking, savings, and money market accounts, as well as certificates of deposit. The company also offers asset-based lending loans; standby letters of credit; construction and development loans; real estate loans, such as commercial real estate loans and other loans; small business administration (SBA) loans, including SBA 7(a) and SBA 504 loans; consumer loans, such as secured and unsecured installment loans, and revolving lines of credit; and commercial and industrial loans, including term loans, working capital, accounts receivable and inventory financing, and other business loans to the dental and veterinary industries, contractors, and emerging companies. In addition, it provides foreign exchange, treasury and cash management, and online and mobile banking services. The company has a full-service branch in California located in Contra Costa County, California; and 4 loan production offices in Alameda, Contra Costa, Sacramento, and Santa Clara. California BanCorp was incorporated in 2007 and is headquartered in Oakland, California.

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