Financial Analysis: Bay National (OTCMKTS:BAYN) versus Truist Financial (NYSE:TFC)

Bay National (OTCMKTS:BAYN) and Truist Financial (NYSE:TFC) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.

Earnings & Valuation

This table compares Bay National and Truist Financial’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bay National	N/A	N/A	N/A	N/A	N/A
Truist Financial	$33.25 billion	1.56	-$1.09 billion	($1.32)	-29.43

Bay National has higher earnings, but lower revenue than Truist Financial.

Profitability

This table compares Bay National and Truist Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bay National	N/A	N/A	N/A
Truist Financial	-4.28%	9.15%	0.92%

Risk and Volatility

Bay National has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500. Comparatively, Truist Financial has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Bay National and Truist Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bay National	0	0	0	0	N/A
Truist Financial	0	7	10	0	2.59

Truist Financial has a consensus price target of $41.88, indicating a potential upside of 7.80%. Given Truist Financial’s higher possible upside, analysts clearly believe Truist Financial is more favorable than Bay National.

Institutional and Insider Ownership

71.3% of Truist Financial shares are held by institutional investors. 17.8% of Bay National shares are held by insiders. Comparatively, 0.2% of Truist Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Truist Financial beats Bay National on 6 of the 9 factors compared between the two stocks.

About Bay National

Bay National Corp. operates as a bank holding company. It offers loans, deposits, investments and other banking and financial services through its subsidiary, Bay National Bank. The company was founded in 1999 and is headquartered in Lutherville, MD.

About Truist Financial

Truist Financial Corporation, a financial services company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings. Its deposit products include noninterest-bearing checking, interest-bearing checking, savings, and money market deposit accounts, as well as certificates of deposit and individual retirement accounts. The company provides funding; asset management; automobile lending; credit card lending; consumer finance; home equity and mortgage lending; other direct retail lending; insurance; investment brokerage; mobile/online banking; payment solutions; point-of-sale lending; retail and small business deposit products; small business lending; and wealth management/private banking services. In addition, it offers asset based lending, investment banking and capital market, institutional trust, insurance premium finance, derivatives, commercial lending, international banking, leasing, merchant, commercial deposit and treasury, floor plan, mortgage warehouse lending, real estate lending, and supply chain financing services. Further, the company provides insurance brokerage, retail and wholesale brokerage, securities underwriting and market making, loan syndication, and investment management and advisory services. The company was formerly known as BB&T Corporation and changed its name to Truist Financial Corporation in December 2019. Truist Financial Corporation was founded in 1872 and is headquartered in Charlotte, North Carolina.