Avidbank (NASDAQ:AVBH) & Timberland Bancorp (NASDAQ:TSBK) Critical Review

Avidbank (NASDAQ:AVBH) and Timberland Bancorp (NASDAQ:TSBK) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Avidbank	N/A	N/A	N/A
Timberland Bancorp	N/A	N/A	N/A

Risk and Volatility

Avidbank has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Timberland Bancorp has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Insider and Institutional Ownership

15.9% of Avidbank shares are owned by institutional investors. Comparatively, 65.5% of Timberland Bancorp shares are owned by institutional investors. 9.6% of Avidbank shares are owned by insiders. Comparatively, 3.6% of Timberland Bancorp shares are owned by 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.

Earnings and Valuation

This table compares Avidbank and Timberland Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avidbank	$46.28 million	7.78	$34.49 million	$3.14	10.45
Timberland Bancorp	$82.97 million	4.49	$31.03 million	$3.99	12.01

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

Analyst Ratings

This is a summary of current ratings and target prices for Avidbank and Timberland Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avidbank	0	1	3	1	3.00
Timberland Bancorp	0	0	0	1	4.00

Avidbank currently has a consensus price target of $35.33, suggesting a potential upside of 7.72%. Given Avidbank’s higher possible upside, equities analysts plainly believe Avidbank is more favorable than Timberland Bancorp.

Summary

Avidbank beats Timberland Bancorp on 6 of the 11 factors compared between the two stocks.

About Avidbank

Avidbank Holdings, Inc. operates as a bank holding company for Avidbank that provides financial products and services to small and middle-market businesses, professionals, and individuals in the Santa Clara, San Mateo, and San Francisco counties. It offers business and personal deposit products, such as checking, money market, and savings accounts; and certificates of deposit. The company also provides personal lending products include secured and unsecured lines of credit, home equity lines of credit, remodel and new home construction loans, and term loans; corporate banking comprises working capital lines of credit, equipment loans, acquisition financing, shareholder buyouts, ESOP loans, and owner-occupied real estate loans; and commercial real estate lending, such as permanent loans and bridge financing products. In addition, it offers construction lending products, including land acquisition loans, pre-development loans, construction spec SFD, owner-occupied SFD, condominiums, subdivision, unsecured business lines, real estate bridge loans, and RLOC – real estate secured loans. Further, the company provides various financing solutions, such as structured finance, venture lending, asset-based lending, and sponsor finance. Additionally, it offers various services, such as automated clearing house payments and collections, bill pay, wire transfer, lockbox, merchant, remote deposit capture, ATM/debit cards, credit cards, business courier, cash management, and notary services, as well as online and mobile banking. The company was formerly known as Peninsula Bank Holding Co. and changed its name to Avidbank Holdings, Inc. in August 2011. Avidbank Holdings, Inc. was founded in 2003 and is headquartered in San Jose, California.

About Timberland Bancorp

Timberland Bancorp, Inc. operates as the bank holding company for Timberland Bank that provides various community banking services in Washington. It offers various deposit products, including money market deposit, checking, and regular savings accounts, as well as certificates of deposit. The company also provides one-to four-family residential, multi-family, and commercial real estate loans; and construction lending products, such as custom and owner/builder, speculative one- to four-family, commercial, multi-family, land development, and land development. In addition, it offers consumer loans comprising home equity lines of credit and second mortgage loans, automobile loans, boat loans, motorcycle loans, recreational vehicle loans, savings account loans, and unsecured loans; and commercial business loans. Timberland Bancorp, Inc. was founded in 1915 and is headquartered in Hoquiam, Washington.