Head to Head Analysis: Redwood Capital Bancorp (OTCMKTS:RWCB) and Camden National (NASDAQ:CAC)

Camden National (NASDAQ:CAC) and Redwood Capital Bancorp (OTCMKTS:RWCB) are both financial services companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Camden National and Redwood Capital Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Camden National	0	2	0	0	2.00
Redwood Capital Bancorp	0	0	0	0	N/A

Camden National presently has a consensus target price of $41.50, indicating a potential upside of 6.46%. Given Camden National’s higher probable upside, equities research analysts plainly believe Camden National is more favorable than Redwood Capital Bancorp.

Insider and Institutional Ownership

77.4% of Camden National shares are owned by institutional investors. 1.9% of Camden National shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Camden National and Redwood Capital Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Camden National	$156.45 million	3.64	$43.38 million	$3.01	12.95
Redwood Capital Bancorp	N/A	N/A	N/A	$0.43	52.24

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

Profitability

This table compares Camden National and Redwood Capital Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Camden National	16.01%	10.36%	0.89%
Redwood Capital Bancorp	N/A	N/A	N/A

Summary

Camden National beats Redwood Capital Bancorp on 8 of the 9 factors compared between the two stocks.

About Camden National

Camden National Corporation operates as the bank holding company for Camden National Bank that provides various commercial and consumer banking products and services for consumer, institutional, municipal, non-profit, and commercial customers in Maine, New Hampshire, and Massachusetts. The company accepts checking, savings, time, and brokered deposits, as well as deposits with the certificate of deposit account registry system. Its loan products include non-owner-occupied commercial estate loans, owner-occupied commercial real estate loans, unsecured fully-guaranteed commercial loans backed by the small business administration, loans secured by one-to four-family properties, and consumer and home equity loans. The company also provides brokerage and insurance services through its financial offerings consisting of college, retirement, estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities. Further, it offers a range of fiduciary and asset management, wealth management, investment management, financial planning, and trustee services. Camden National Corporation was founded in 1875 and is headquartered in Camden, Maine.

About Redwood Capital Bancorp

Redwood Capital Bancorp operates as the bank holding company for Redwood Capital Bank that provides various banking products and services to individuals and businesses in California. The company accepts checking, savings, and money market accounts, as well as certificates of deposit. It also offers real estate loans, home equity lines of credit, construction and development loans, term loans for machinery and equipment, and lines of credit for working capital, as well as industrial, agricultural, and personal credits. In addition, the company provides credit and debit cards, re-order checks, and online and mobile banking services. Redwood Capital Bancorp was founded in 2004 and is based in Eureka, California.