Berkshire Bancorp (OTCMKTS:BERK) versus Reliant Bancorp (OTCMKTS:RBNC) Critical Comparison

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

Profitability

This table compares Berkshire Bancorp and Reliant Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Berkshire Bancorp N/A N/A N/A
Reliant Bancorp 19.46% 7.69% 0.93%

Valuation & Earnings

This table compares Berkshire Bancorp and Reliant Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Berkshire Bancorp $29.79 million 6.29 $5.62 million N/A N/A
Reliant Bancorp $78.87 million 3.28 $14.09 million $1.37 16.89

Reliant Bancorp has higher revenue and earnings than Berkshire Bancorp.

Risk and Volatility

Berkshire Bancorp has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500. Comparatively, Reliant Bancorp has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500.

Dividends

Reliant Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 1.6%. Berkshire Bancorp does not pay a dividend. Reliant Bancorp pays out 26.3% of its earnings in the form of a dividend.

Institutional & Insider Ownership

0.1% of Berkshire Bancorp shares are owned by institutional investors. Comparatively, 29.0% of Reliant Bancorp shares are owned by institutional investors. 70.4% of Berkshire Bancorp shares are owned by company insiders. Comparatively, 9.7% of Reliant Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Berkshire Bancorp and Reliant Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Berkshire Bancorp 0 0 0 0 N/A
Reliant Bancorp 0 3 2 0 2.40

Reliant Bancorp has a consensus target price of $26.33, suggesting a potential upside of 13.80%. Given Reliant Bancorp’s higher possible upside, analysts plainly believe Reliant Bancorp is more favorable than Berkshire Bancorp.

Summary

Reliant Bancorp beats Berkshire Bancorp on 10 of the 13 factors compared between the two stocks.

Berkshire Bancorp Company Profile

Berkshire Bancorp Inc. operates as the bank holding company for The Berkshire Bank that provides community banking services primarily to businesses, professionals, and retail customers. The company offers various deposit products, including statement savings accounts, NOW accounts, money market deposits accounts, checking accounts, and certificates of deposit. Its loan portfolio comprises commercial mortgage loans secured by office buildings, retail establishments, multi-family residential real estate, and other types of commercial property; commercial loans offered to businesses for inventory financing, working capital, machinery and equipment purchases, expansion, and other business purposes; and residential mortgage loans secured by first liens on one-to-four family owner-occupied or rental residential real estate, as well as residential single family construction loans, home equity loans and lines of credit, and short-term fixed-rate consumer loans. The company also offers title insurance agency services; and acts as a qualified intermediary in connection with tax free exchanges under Section 1031 of the Internal Revenue Code of 1986. It operates through seven deposit-taking offices in New York City; four deposit-taking offices in Orange and Sullivan counties, New York; and one deposit taking office in Teaneck, New Jersey. The company was founded in 1979 and is based in New York, New York.

Reliant Bancorp Company Profile

Reliant Bancorp, Inc. operates as the holding company for Reliant Bank that provides a range of commercial banking services for businesses and individuals in the Middle Tennessee region and the Nashville-Davidson-Murfreesboro-Franklin Metropolitan Statistical Area. Its deposit products include checking, savings, and money market deposit accounts; time deposits; certificates of deposit; and non-interest-bearing and interest bearing demand deposits. The company's loan portfolio comprises residential mortgage loans and mortgage refinancing; commercial, industrial, and agricultural loans; multi-family and commercial real estate loans; construction, land development, and farmland loans; 1-4 family residential real estate loans; home equity loans; and consumer loans, such as loans for household, family, and other personal expenditures. It also provides safe deposit box, debit card, direct deposit, and official bank check services. The company operates through seven branches in Davidson, Robertson, Sumner, and Williamson counties in Tennessee. The company was formerly known as Commerce Union Bancshares, Inc. and changed its name to Reliant Bancorp, Inc. in January 2018. Reliant Bancorp, Inc. was founded in 2006 and is based in Brentwood, Tennessee.

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