Head to Head Analysis: Cambridge Bancorp (NASDAQ:CATC) & Berkshire Bancorp (OTCMKTS:BERK)

Berkshire Bancorp (OTCMKTS:BERK) and Cambridge Bancorp (NASDAQ:CATC) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Insider and Institutional Ownership

55.5% of Cambridge Bancorp shares are owned by institutional investors. 70.4% of Berkshire Bancorp shares are owned by company insiders. Comparatively, 4.5% of Cambridge Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Berkshire Bancorp and Cambridge Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Berkshire Bancorp	N/A	N/A	N/A
Cambridge Bancorp	10.11%	6.67%	0.65%

Analyst Ratings

This is a breakdown of current ratings and price targets for Berkshire Bancorp and Cambridge Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Berkshire Bancorp	0	0	0	0	N/A
Cambridge Bancorp	0	0	1	0	3.00

Cambridge Bancorp has a consensus target price of $73.15, indicating a potential downside of 0.60%. Given Cambridge Bancorp’s higher probable upside, analysts clearly believe Cambridge Bancorp is more favorable than Berkshire Bancorp.

Earnings and Valuation

This table compares Berkshire Bancorp and Cambridge Bancorp’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Berkshire Bancorp	$20.05 million	N/A	$2.70 million	N/A	N/A
Cambridge Bancorp	$260.26 million	2.22	$34.11 million	$3.63	20.27

Cambridge Bancorp has higher revenue and earnings than Berkshire Bancorp.

Summary

Cambridge Bancorp beats Berkshire Bancorp on 8 of the 9 factors compared between the two stocks.

About Berkshire Bancorp

Berkshire Bancorp Inc. operates as the bank holding company for The Berkshire Bank that provides community banking services primarily to businesses, professionals, and retail customers. The company offers statement savings, NOW, money market deposit, and checking accounts, as well as certificates of deposit. It also provides commercial and industrial, commercial and residential real estate, multi-family real estate, construction, and consumer loans, as well as mortgages and finance leasing services. In addition, the company offers ATM and debit cards; safe deposit boxes; bill pay, collection, remote deposit capture, and foreign exchange services; and mobile, telephone, and online banking services. It operates through two branches located in Manhattan; four branches located in Brooklyn, New York; four branches located in Orange and Sullivan Counties in New York State; and one branch located in Teaneck, New Jersey. Berkshire Bancorp Inc. was founded in 1871 and is headquartered in New York, New York.

About Cambridge Bancorp

Cambridge Bancorp operates as the bank holding company for Cambridge Trust Company that engages in the provision of commercial and consumer banking, and investment management and trust services. The company accepts various deposits, such as checking, savings, money market, trust, and individual retirement accounts, as well as time and demand deposits, and certificates of deposit. Its loan products include residential and commercial real estate loans; construction loan; residential mortgages and home equity loans; commercial and industrial loans; consumer loans, such as secured and unsecured loans, lines of credit, and personal installment loans; and construction loans. The company also offers cash management, debit and credit cards, online and mobile banking, and payments services. It serves commercial enterprises, non-profit organizations, and individuals. The company operates through a network of banking and wealth management offices located in Massachusetts and New Hampshire. Cambridge Bancorp was founded in 1890 and is headquartered in Cambridge, Massachusetts.