Financial Comparison: Coastal Financial (NASDAQ:CCB) and Parke Bancorp (NASDAQ:PKBK)

Coastal Financial (NASDAQ:CCB) and Parke Bancorp (NASDAQ:PKBK) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Coastal Financial and Parke Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coastal Financial	1	1	5	0	2.57
Parke Bancorp	0	0	1	0	3.00

Coastal Financial currently has a consensus price target of $91.83, indicating a potential upside of 114.97%. Given Coastal Financial’s higher probable upside, equities analysts clearly believe Coastal Financial is more favorable than Parke Bancorp.

Insider and Institutional Ownership

59.2% of Coastal Financial shares are held by institutional investors. Comparatively, 49.7% of Parke Bancorp shares are held by institutional investors. 13.5% of Coastal Financial shares are held by company insiders. Comparatively, 13.0% of Parke Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Coastal Financial and Parke Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coastal Financial	-0.50%	-0.75%	-0.07%
Parke Bancorp	30.55%	14.13%	2.10%

Risk & Volatility

Coastal Financial has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Parke Bancorp has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Earnings & Valuation

This table compares Coastal Financial and Parke Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coastal Financial	$661.22 million	0.99	$46.99 million	($0.27)	-158.22
Parke Bancorp	$146.08 million	2.63	$37.78 million	$3.97	8.22

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

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.

About Parke Bancorp

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.