Analyzing Bay Banks of Virginia (OTCMKTS:BAYK) and Primis Financial (NASDAQ:FRST)

Bay Banks of Virginia (OTCMKTS:BAYK) and Primis Financial (NASDAQ:FRST) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Profitability

This table compares Bay Banks of Virginia and Primis Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bay Banks of Virginia	N/A	N/A	N/A
Primis Financial	7.31%	4.65%	0.47%

Earnings & Valuation

This table compares Bay Banks of Virginia and Primis Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bay Banks of Virginia	$55.38 million	2.27	$7.06 million	N/A	N/A
Primis Financial	$244.23 million	1.29	-$7.83 million	N/A	N/A

Bay Banks of Virginia has higher earnings, but lower revenue than Primis Financial.

Insider and Institutional Ownership

75.0% of Primis Financial shares are owned by institutional investors. 7.6% of Bay Banks of Virginia shares are owned by insiders. Comparatively, 10.9% of Primis Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Bay Banks of Virginia and Primis Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bay Banks of Virginia	0	0	0	0	0.00
Primis Financial	0	0	1	0	3.00

Primis Financial has a consensus price target of $14.00, suggesting a potential upside of 9.80%. Given Primis Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Primis Financial is more favorable than Bay Banks of Virginia.

Summary

Primis Financial beats Bay Banks of Virginia on 9 of the 11 factors compared between the two stocks.

About Bay Banks of Virginia

Bay Banks of Virginia, Inc., through its subsidiaries, provides various banking products and services to businesses, professionals, and consumers in Virginia. The company accepts checking accounts, savings accounts, money market accounts, cash management accounts, certificates of deposit, and individual retirement accounts. Its loan products include commercial and industrial loans, such as small business loans, asset based loans, and other secured and unsecured loans and lines of credit; purchased loans; residential and commercial mortgages; home equity loans; consumer installment loans; and consumer loans comprising automobile and boat financing, home improvement loans, and unsecured personal loans. The company also provides credit cards; and insurance, online banking, telephone banking, mobile banking, analysis checking, cash management deposit, wire, direct deposit payroll, lockbox, positive pay, and remote deposit services, as well as a line of commercial lending options. In addition, it offers management services, including estate planning and settlement, as well as trust administration, investment, and wealth management services; and revocable and irrevocable living trusts, testamentary trusts, custodial accounts, investment planning, brokerage services, investment managed accounts, and managed and self-directed rollover individual retirement accounts for personal and corporate trusts. As of March 9, 2020, the company operated 17 banking offices located throughout greater Richmond region, the Northern Neck region, Middlesex County, and the Hampton Roads region. Bay Banks of Virginia, Inc. was founded in 1930 and is headquartered in Richmond, Virginia.

About Primis Financial

Primis Financial Corp. operates as the bank holding company for Primis Bank that provides a range of financial services to individuals and small and medium sized businesses in the United States. Its deposit products include checking, NOW, savings, and money market accounts, as well as certificates of deposits. The company also provides commercial business and real estate, construction, secured asset based, small business administration, mortgage warehouse lending products, as well as financing for medical, dental, and veterinary businesses; residential mortgage, trust mortgage, home equity lines of credit, secured and unsecured personal, and consumer loans, as well as life insurance premium financing and demand loans. It also offers cash management services comprising investment/sweep, zero balance, and controlled disbursement accounts; and wire transfer, employer/payroll processing, night depository, depository transfer, merchant, ACH origination, and remote deposit capture services. In addition, the company provides debit cards, ATM services, notary services, and mobile and online banking. It operates full-service branches in Virginia and Maryland. The company was formerly known as Southern National Bancorp of Virginia, Inc. and changed its name to Primis Financial Corp. Primis Financial Corp. was founded in 2004 and is based in McLean, Virginia.