Bank of Marin Bancorp (NASDAQ:BMRC) versus Amalgamated Financial (NASDAQ:AMAL) Head-To-Head Review

Bank of Marin Bancorp (NASDAQ:BMRC) and Amalgamated Financial (NASDAQ:AMAL) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Earnings & Valuation

This table compares Bank of Marin Bancorp and Amalgamated Financial’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of Marin Bancorp	$144.48 million	1.65	$19.90 million	$0.83	17.66
Amalgamated Financial	$387.41 million	1.96	$87.98 million	$3.06	8.15

Amalgamated Financial has higher revenue and earnings than Bank of Marin Bancorp. Amalgamated Financial is trading at a lower price-to-earnings ratio than Bank of Marin Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

Bank of Marin Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 6.8%. Amalgamated Financial pays an annual dividend of $0.48 per share and has a dividend yield of 1.9%. Bank of Marin Bancorp pays out 120.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Amalgamated Financial pays out 15.7% of its earnings in the form of a dividend. Bank of Marin Bancorp has increased its dividend for 18 consecutive years. Bank of Marin Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Bank of Marin Bancorp has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Amalgamated Financial has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Insider and Institutional Ownership

52.3% of Bank of Marin Bancorp shares are held by institutional investors. Comparatively, 75.9% of Amalgamated Financial shares are held by institutional investors. 5.7% of Bank of Marin Bancorp shares are held by insiders. Comparatively, 0.9% of Amalgamated Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Bank of Marin Bancorp and Amalgamated Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of Marin Bancorp	9.28%	4.09%	0.45%
Amalgamated Financial	23.22%	16.34%	1.17%

Analyst Ratings

This is a breakdown of recent recommendations for Bank of Marin Bancorp and Amalgamated Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of Marin Bancorp	0	2	1	0	2.33
Amalgamated Financial	0	0	3	0	3.00

Bank of Marin Bancorp currently has a consensus target price of $17.33, indicating a potential upside of 18.24%. Amalgamated Financial has a consensus target price of $29.50, indicating a potential upside of 18.33%. Given Amalgamated Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Amalgamated Financial is more favorable than Bank of Marin Bancorp.

Summary

Amalgamated Financial beats Bank of Marin Bancorp on 13 of the 17 factors compared between the two stocks.

About Bank of Marin Bancorp

Bank of Marin Bancorp operates as the holding company for Bank of Marin that provides a range of financial services primarily to small to medium-sized businesses, not-for-profit organizations, and commercial real estate investors in the United States. The company offers personal and business checking and savings accounts; and individual retirement, health savings, and demand deposit marketplace accounts, as well as time certificates of deposit, certificate of deposit account registry, and insured cash sweep services. It also provides commercial real estate, commercial and industrial, and consumer loans, as well as construction financing and home equity lines of credit. In addition, the company offers merchant and payroll services; commercial equipment leasing program; payment solutions; treasury management services; credit cards; and mobile deposit, remote deposit capture, automated clearing house, wire transfer, and image lockbox services. Further, it provides wealth management and trust services comprising customized investment portfolio management, financial planning, trust administration, estate settlement, and custody services, as well as 401(k) plan services; and automated teller machines, and telephone and digital banking services. The company was incorporated in 1989 and is headquartered in Novato, California.

About Amalgamated Financial

Amalgamated Financial Corp. operates as the bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services for commercial and retail customers in the United States. The company accepts various deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts, NOW accounts, and certificates of deposit. It also provides various commercial loans comprising commercial and industrial, multifamily mortgage, and commercial real estate loans; residential mortgage loans; and retail loans, such as residential real estate, consumer solar, and consumer and other loans. In addition, the company offers online banking, bill payment, online cash management, and safe deposit box rental services; debit and ATM cards; and trust, custody, and investment management services comprising asset safekeeping, corporate actions, income collections, proxy, account transition, asset transfers, and conversion management services. Further, it provides investment products, such as funds spanning equity, fixed-income, real estate, and alternative investment products; and brokerage, asset management, and insurance products. Amalgamated Financial Corp. was founded in 1923 and is headquartered in New York, New York.