BayCom (NASDAQ:BCML – Get Free Report) and Southern States Bancshares (NASDAQ:SSBK – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.
Profitability
This table compares BayCom and Southern States Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BayCom | 17.88% | 7.84% | 0.95% |
| Southern States Bancshares | 20.68% | 15.64% | 1.39% |
Dividends
BayCom pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. Southern States Bancshares pays an annual dividend of $0.36 per share and has a dividend yield of 1.2%. BayCom pays out 18.1% of its earnings in the form of a dividend. Southern States Bancshares pays out 10.0% 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.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BayCom | $100.51 million | 2.44 | $27.42 million | $2.21 | 9.88 |
| Southern States Bancshares | $86.41 million | 3.13 | $31.95 million | $3.60 | 8.43 |
Southern States Bancshares has lower revenue, but higher earnings than BayCom. Southern States Bancshares is trading at a lower price-to-earnings ratio than BayCom, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
66.2% of BayCom shares are owned by institutional investors. Comparatively, 58.7% of Southern States Bancshares shares are owned by institutional investors. 7.2% of BayCom shares are owned by insiders. Comparatively, 14.8% of Southern States Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and price targets for BayCom and Southern States Bancshares, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BayCom | 0 | 0 | 1 | 0 | 3.00 |
| Southern States Bancshares | 0 | 0 | 1 | 0 | 3.00 |
BayCom currently has a consensus target price of $24.00, suggesting a potential upside of 9.89%. Southern States Bancshares has a consensus target price of $36.00, suggesting a potential upside of 18.69%. Given Southern States Bancshares’ higher probable upside, analysts clearly believe Southern States Bancshares is more favorable than BayCom.
Risk and Volatility
BayCom has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Southern States Bancshares has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.
Summary
Southern States Bancshares beats BayCom on 9 of the 14 factors compared between the two stocks.
About BayCom
BayCom Corp operates as the bank holding company for United Business Bank that provides various financial services to small and mid-sized businesses, service professionals, and individuals. The company provides demand, savings, money market, and time deposit accounts. It offers commercial and multifamily real estate loans, including owner-occupied and investor real estate loans; commercial and industrial loans, such as equipment loans and working capital lines of credit; small business administration loans; construction and land loans; agriculture-related loans; and consumer loans comprising installment loans, unsecured and secured personal lines of credit, and overdraft protection. In addition, the company provides online and mobile banking, automated teller machine, remote deposit capture, night depository, courier, direct deposit, treasury management, wire transfer, automated clearing house, debit cards, cashier's and travelers checks, letters of credit, lockbox, positive pay, reverse positive pay, and account reconciliation services, as well as zero balance accounts and sweep accounts, including loan sweep. It operates through a network of full-service banking branches in Northern and Southern California; Las Vegas, Nevada; Denver, Colorado; Custer, Delta, and Grand counties, Colorado; and Seattle, Washington and Central New Mexico. The company was formerly known as Bay Commercial Bank and changed its name to BayCom Corp in January 2017. BayCom Corp was incorporated in 2004 and is headquartered in Walnut Creek, California.
About Southern States Bancshares
Southern States Bancshares, Inc. operates as the bank holding company for Southern States Bank that provides community banking services to businesses and individuals. The company provides various deposit products, such as savings, money market, and noninterest-bearing demand accounts; certificates of deposit; and time deposits. It offers real estate loan products, including loans for real estate construction and development, residential mortgages, and commercial real estate mortgage loans; commercial and industrial loans; and direct consumer installment loans, overdrafts, and other revolving credit loans. In addition, it offers online and mobile banking, and ATM services. Southern States Bancshares, Inc. was founded in 2007 and is headquartered in Anniston, Alabama.
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