Fidelity D & D Bancorp (NASDAQ:FDBC) and Pacific Mercantile Bancorp (NASDAQ:PMBC) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.
Institutional & Insider Ownership
15.3% of Fidelity D & D Bancorp shares are held by institutional investors. Comparatively, 66.3% of Pacific Mercantile Bancorp shares are held by institutional investors. 21.0% of Fidelity D & D Bancorp shares are held by company insiders. Comparatively, 4.7% of Pacific Mercantile Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Fidelity D & D Bancorp and Pacific Mercantile Bancorp’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fidelity D & D Bancorp||$64.16 million||4.36||$13.03 million||N/A||N/A|
|Pacific Mercantile Bancorp||$66.93 million||2.99||$8.33 million||N/A||N/A|
Fidelity D & D Bancorp has higher earnings, but lower revenue than Pacific Mercantile Bancorp.
Volatility and Risk
Fidelity D & D Bancorp has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, Pacific Mercantile Bancorp has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.
This table compares Fidelity D & D Bancorp and Pacific Mercantile Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fidelity D & D Bancorp||22.46%||10.52%||0.96%|
|Pacific Mercantile Bancorp||21.17%||9.02%||0.87%|
This is a summary of current ratings and price targets for Fidelity D & D Bancorp and Pacific Mercantile Bancorp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fidelity D & D Bancorp||0||0||0||0||N/A|
|Pacific Mercantile Bancorp||0||0||1||0||3.00|
Pacific Mercantile Bancorp has a consensus price target of $12.00, indicating a potential upside of 33.93%. Given Pacific Mercantile Bancorp’s higher possible upside, analysts clearly believe Pacific Mercantile Bancorp is more favorable than Fidelity D & D Bancorp.
Fidelity D & D Bancorp beats Pacific Mercantile Bancorp on 7 of the 12 factors compared between the two stocks.
About Fidelity D & D Bancorp
Fidelity D & D Bancorp, Inc. operates as the bank holding company for The Fidelity Deposit and Discount Bank that provides a range of banking, trust, and financial services to individuals, small businesses, and corporate customers. The company accepts savings, clubs, interest-bearing and non-interest bearing checking, money market, and short- and long-term time deposits, as well as certificates of deposit. Its loan products include commercial and industrial loans, commercial real estate loans, consumer loans, and residential mortgage loans. The company also provides alternative financial and insurance products with asset management services. As of December 31, 2020, it operated 20 full-service banking offices in Lackawanna, Luzerne, Northampton, and Lehigh counties, Pennsylvania. Fidelity D & D Bancorp, Inc. was founded in 1902 and is headquartered in Dunmore, Pennsylvania.
About Pacific Mercantile Bancorp
Pacific Mercantile Bancorp operates as a holding company for the Pacific Mercantile Bank that provides a range of commercial banking products and services to middle-market businesses, professional firms, and individuals. The company's deposit products include checking accounts, interest-bearing term deposit accounts, savings and money market deposits, and time deposits. It also offers various loan products, such as commercial loans and credit lines, accounts receivable and inventory financing, small business administration guaranteed business loans, owner-occupied commercial real estate loans, working capital lines of credit and asset based lending, growth capital loans, equipment financing, letters of credit, and corporate credit cards. In addition, the company provides cash and treasury management solutions, automated clearinghouse payment and wire solutions, fraud protection services, remote deposit capture services, courier services, and online banking services; and import/export financing services. As of January 25, 2021, it operates seven offices in Orange, Los Angeles, San Diego, and San Bernardino counties, Southern California. The company was founded in 1998 and is headquartered in Costa Mesa, California.
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