Head to Head Analysis: Byline Bancorp (NYSE:BY) vs. Bancorp (NASDAQ:TBBK)

Bancorp (NASDAQ:TBBK) and Byline Bancorp (NYSE:BY) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bancorp	27.16%	27.24%	2.56%
Byline Bancorp	19.03%	10.98%	1.30%

Institutional and Insider Ownership

96.2% of Bancorp shares are owned by institutional investors. Comparatively, 67.7% of Byline Bancorp shares are owned by institutional investors. 5.2% of Bancorp shares are owned by company insiders. Comparatively, 28.8% of Byline Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Bancorp and Byline Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bancorp	0	1	5	1	3.00
Byline Bancorp	0	2	2	0	2.50

Bancorp currently has a consensus target price of $62.00, indicating a potential downside of 20.58%. Byline Bancorp has a consensus target price of $33.25, indicating a potential upside of 16.67%. Given Byline Bancorp’s higher probable upside, analysts plainly believe Byline Bancorp is more favorable than Bancorp.

Volatility and Risk

Bancorp has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Byline Bancorp has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Valuation & Earnings

This table compares Bancorp and Byline Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bancorp	$709.11 million	5.07	$217.54 million	$4.65	16.79
Byline Bancorp	$416.19 million	3.14	$120.76 million	$2.68	10.63

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

Summary

Bancorp beats Byline Bancorp on 13 of the 15 factors compared between the two stocks.

About Bancorp

The Bancorp, Inc. operates as the bank holding company for The Bancorp Bank, National Association that provides banking products and services in the United States. It offers a range of deposit products and services, including checking, savings, time, money market, and commercial accounts; overdrafts; and certificates of deposit. The company also provides securities-backed lines of credit and insurance policy cash value-backed lines of credit; investor advisor financing; lease financing for commercial and government vehicle fleets, including trucks and other special purpose vehicles; commercial real estate bridge loans; and small business administration loans. In addition, it offers bill and other payment services; debit and prepaid card issuing services; card and bill payment, and automated clearing house processing services; and internet banking services. The company was incorporated in 1999 and is headquartered in Wilmington, Delaware.

About Byline Bancorp

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits. The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services. In addition, it offers financing solutions for equipment vendors and their end users; syndication services; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.