Summit State Bank (NASDAQ:SSBI – Get Free Report) and Coastal Financial (NASDAQ:CCB – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.
Analyst Ratings
This is a breakdown of current ratings and target prices for Summit State Bank and Coastal Financial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Summit State Bank | 1 | 0 | 0 | 0 | 1.00 |
| Coastal Financial | 0 | 1 | 5 | 1 | 3.00 |
Coastal Financial has a consensus price target of $116.20, suggesting a potential upside of 6.29%. Given Coastal Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Coastal Financial is more favorable than Summit State Bank.
Risk & Volatility
Institutional & Insider Ownership
59.2% of Coastal Financial shares are held by institutional investors. 14.1% of Coastal Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Summit State Bank and Coastal Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Summit State Bank | -1.70% | N/A | N/A |
| Coastal Financial | 7.02% | 11.31% | 1.12% |
Valuation and Earnings
This table compares Summit State Bank and Coastal Financial”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Summit State Bank | $34.72 million | 2.32 | -$3.66 million | ($0.16) | -74.44 |
| Coastal Financial | $703.32 million | 2.35 | $45.22 million | $3.25 | 33.64 |
Coastal Financial has higher revenue and earnings than Summit State Bank. Summit State Bank is trading at a lower price-to-earnings ratio than Coastal Financial, indicating that it is currently the more affordable of the two stocks.
Summary
Coastal Financial beats Summit State Bank on 15 of the 15 factors compared between the two stocks.
About Summit State Bank
Summit State Bank engages in providing an array of financial services to small and medium-sized businesses, their owners and employees, entrepreneurs, high net worth families, foundations, estates, and individual consumers. It specializes in business services, personal accounts, nonprofit programs, and mobile banking ranging from lending, checking, merchant, eBanking, automated teller machines, equity loans, and others. The company was founded on December 20, 1982 and is headquartered in Santa Rosa, CA.
About Coastal Financial
Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company also offers commercial and industrial loans, such as term loans, commercial lines of credit, capital call lines working capital loans, equipment financing, borrowing base loans, small business administration loans, and other loan products; owner and non-owner-occupied real estate loans, and multi-family residential loans; construction, land, and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as personal lines of credit, including overdraft protection. In addition, it provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services; and debit cards. Further, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as Banking as a Service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their customers banking services. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.
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