Head to Head Contrast: RBB Bancorp (NASDAQ:RBB) vs. Hanover Bancorp (NASDAQ:HNVR)

RBB Bancorp (NASDAQ:RBB) and Hanover Bancorp (NASDAQ:HNVR) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Risk & Volatility

RBB Bancorp has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Hanover Bancorp has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500.

Earnings & Valuation

This table compares RBB Bancorp and Hanover Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RBB Bancorp	$114.70 million	2.33	$26.67 million	$1.46	10.33
Hanover Bancorp	$68.43 million	2.18	$12.35 million	$1.66	12.47

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

Dividends

RBB Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 4.2%. Hanover Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. RBB Bancorp pays out 43.8% of its earnings in the form of a dividend. Hanover Bancorp pays out 24.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Insider & Institutional Ownership

40.1% of RBB Bancorp shares are held by institutional investors. Comparatively, 15.0% of Hanover Bancorp shares are held by institutional investors. 6.6% of RBB Bancorp shares are held by company insiders. Comparatively, 24.8% of Hanover 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.

Analyst Ratings

This is a summary of recent ratings for RBB Bancorp and Hanover Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RBB Bancorp	0	4	0	0	2.00
Hanover Bancorp	0	1	1	0	2.50

RBB Bancorp presently has a consensus price target of $21.25, indicating a potential upside of 40.92%. Hanover Bancorp has a consensus price target of $22.00, indicating a potential upside of 6.28%. Given RBB Bancorp’s higher probable upside, research analysts clearly believe RBB Bancorp is more favorable than Hanover Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
RBB Bancorp	11.49%	5.21%	0.68%
Hanover Bancorp	8.32%	6.71%	0.54%

Summary

RBB Bancorp beats Hanover Bancorp on 9 of the 16 factors compared between the two stocks.

About RBB Bancorp

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American, Korean-American, and other Asian-American communities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company also offers commercial and industrial lines of credit, term loans, mortgage warehouse lines, and international trade discounts; commercial real estate loans; residential, commercial, and land acquisition and development construction loans; small business administration loans; and single-family residential mortgage loans. In addition, it provides international letters of credit, SWIFT, export advisory, trade finance discount, and foreign exchange services; and remote deposit, e-banking, and mobile banking services. The company serves individuals, businesses, municipalities, and other entities. It operates branches in the Western region with branches in Los Angeles County, California; Orange County, California; Ventura County, California; Clark County, Nevada; Honolulu, Hawaii, as well as in Eastern region with branches in Manhattan, Brooklyn and Queens, New York; Chicago, Illinois; and Edison, New Jersey. RBB Bancorp was founded in 2008 and is headquartered in Los Angeles, California.

About Hanover Bancorp

Hanover Bancorp, Inc., a bank holding company for Hanover Community Bank, provides personal and business lending and deposit services to businesses, municipalities, and individuals in the New York metro area. The company offers checking, credit cards, debit cards, money market, savings, government and municipal banking, and professional services, as well as time deposits, including certificate of deposit and individual retirement accounts. It also provides business loans, commercial real estate financing, small business administration, lending directory services, and residential mortgage. In addition, the company offers cash management, online and mobile banking, merchant services, and digital solutions. Its banking offices are located in Nassau, Suffolk, Queens, Kings, New York Counties, New York, Monmouth County, Freehold, and New Jersey. The company was founded in 2008 and is headquartered in Mineola, New York.