Financial Comparison: Randolph Bancorp (RNDB) vs. Columbia Banking System (COLB)

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Randolph Bancorp (NASDAQ:RNDB) and Columbia Banking System (NASDAQ:COLB) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Randolph Bancorp and Columbia Banking System, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Randolph Bancorp 0 0 0 0 N/A
Columbia Banking System 0 2 2 0 2.50

Columbia Banking System has a consensus price target of $47.75, suggesting a potential upside of 27.27%. Given Columbia Banking System’s higher probable upside, analysts plainly believe Columbia Banking System is more favorable than Randolph Bancorp.

Profitability

This table compares Randolph Bancorp and Columbia Banking System’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Randolph Bancorp -11.21% -373.14% -54.83%
Columbia Banking System 25.35% 8.66% 1.34%

Institutional and Insider Ownership

33.0% of Randolph Bancorp shares are owned by institutional investors. Comparatively, 89.9% of Columbia Banking System shares are owned by institutional investors. 7.7% of Randolph Bancorp shares are owned by company insiders. Comparatively, 1.1% of Columbia Banking System shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Randolph Bancorp and Columbia Banking System’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Randolph Bancorp $29.90 million 3.06 -$2.12 million N/A N/A
Columbia Banking System $484.39 million 5.68 $112.82 million $2.19 17.13

Columbia Banking System has higher revenue and earnings than Randolph Bancorp.

Risk & Volatility

Randolph Bancorp has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500. Comparatively, Columbia Banking System has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Dividends

Columbia Banking System pays an annual dividend of $1.04 per share and has a dividend yield of 2.8%. Randolph Bancorp does not pay a dividend. Columbia Banking System pays out 47.5% of its earnings in the form of a dividend. Columbia Banking System has increased its dividend for 7 consecutive years.

Summary

Columbia Banking System beats Randolph Bancorp on 12 of the 14 factors compared between the two stocks.

About Randolph Bancorp

Randolph Bancorp, Inc. operates as the bank holding company for Envision Bank that provides financial services to individuals, families, and small to mid-size businesses in Massachusetts, Rhode Island, and southern New Hampshire. The company accepts checking, NOW, money market, and savings accounts, as well as certificate of deposits and IRAs. It also offers one- to four-family residential mortgage, commercial real estate, commercial and industrial, construction, and consumer loans; home equity loans and lines of credit; and investment securities. In addition, the company provides remote deposit capture products for business customers to meet their online banking needs. As of February 27, 2018, it operated six retail branch locations and loan operations centers in Andover and North Attleboro, Massachusetts; and five loan production offices in eastern Massachusetts. The company was founded in 1851 and is based in Stoughton, Massachusetts. Randolph Bancorp, Inc. is a subsidiary of Randolph Bancorp (MHC).

About Columbia Banking System

Columbia Banking System, Inc. operates as the bank holding company for Columbia State Bank that provides a range of banking services to small and medium-sized businesses, professionals, and individuals in Washington, Oregon, and Idaho. It offers personal banking products and services, including noninterest and interest-bearing checking, saving, money market, and certificate of deposit accounts; home mortgages for purchases and refinances, home equity loans and lines of credit, and personal loans; debit and credit cards; and digital banking services. The company also provides business banking products and services, such as checking, savings, interest-bearing money market, and certificate of deposit accounts; agricultural loans, asset-based loans, builder and other commercial real estate loans, and loans guaranteed by the small business administration; debit and credit cards; and professional banking, treasury management, merchant card, and international banking services. In addition, it offers wealth management services in the areas of private banking, financial services, and trust and investment services to individuals, families, and professional businesses. Further, the company provides fiduciary, agency, trust, and related services, as well as life insurance products. As of December 31, 2017, the company had 155 branches. Columbia Banking System, Inc. was founded in 1993 and is headquartered in Tacoma, Washington.

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