Reviewing Byline Bancorp (NYSE:BY) and Heritage Commerce (HTBK)

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Heritage Commerce (NASDAQ:HTBK) and Byline Bancorp (NYSE:BY) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.


This table compares Heritage Commerce and Byline Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Heritage Commerce 17.74% 12.45% 1.29%
Byline Bancorp 10.15% 7.32% 0.94%

Volatility and Risk

Heritage Commerce has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, Byline Bancorp has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Heritage Commerce and Byline Bancorp, as reported by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Heritage Commerce 0 0 4 0 3.00
Byline Bancorp 0 1 1 0 2.50

Heritage Commerce presently has a consensus price target of $18.33, suggesting a potential upside of 37.74%. Byline Bancorp has a consensus price target of $25.00, suggesting a potential upside of 28.80%. Given Heritage Commerce’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Heritage Commerce is more favorable than Byline Bancorp.


Heritage Commerce pays an annual dividend of $0.44 per share and has a dividend yield of 3.3%. Byline Bancorp does not pay a dividend. Heritage Commerce pays out 55.0% of its earnings in the form of a dividend. Heritage Commerce has increased its dividend for 4 consecutive years.

Institutional and Insider Ownership

73.8% of Heritage Commerce shares are owned by institutional investors. Comparatively, 35.5% of Byline Bancorp shares are owned by institutional investors. 5.4% of Heritage Commerce shares are owned by company insiders. Comparatively, 45.1% of Byline Bancorp shares are owned by company 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.

Valuation and Earnings

This table compares Heritage Commerce and Byline Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Heritage Commerce $116.52 million 4.94 $23.82 million $0.80 16.64
Byline Bancorp $186.86 million 3.77 $21.69 million $0.52 37.33

Heritage Commerce has higher earnings, but lower revenue than Byline Bancorp. Heritage Commerce is trading at a lower price-to-earnings ratio than Byline Bancorp, indicating that it is currently the more affordable of the two stocks.


Heritage Commerce beats Byline Bancorp on 13 of the 17 factors compared between the two stocks.

Heritage Commerce Company Profile

Heritage Commerce Corp operates as the bank holding company for Heritage Bank of Commerce that provides various commercial and personal banking services to residents and the business/professional community in California. It offers a range of deposit products for business banking and retail markets, including interest and non-interest bearing demand, savings accounts, certificate of deposit, money market accounts, and time deposits. The company also provides various loan products comprising commercial loans, such as operating secured and unsecured loans advanced for working capital, equipment purchases, and other business purposes; commercial real estate loans; commercial construction loans for rental properties, commercial buildings, and homes; home equity lines of credit; consumer loans consisting of loans for financing automobiles, various consumer goods, and other personal purposes; and small business administration loans. In addition, it offers other banking services, including cashier's checks, bank-by-mail, ATMs, night depositories, safe deposit boxes, direct deposit, automated payroll, electronic funds transfer, online banking, online bill pay, homeowner association, remote deposit capture, automated clearing house origination, electronic data interchange, and check imaging services, as well as other customary banking and factoring financing services. The company provides its banking products and services through 11 full service branch offices in the southern and eastern regions of the general San Francisco Bay Area of California in the counties of Santa Clara, Alameda, Contra Costa, and San Benito. Heritage Commerce Corp was founded in 1997 and is based in San Jose, California.

Byline Bancorp Company Profile

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides a range of banking products and services to small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers non-interest bearing accounts, money market demand accounts, savings accounts, interest bearing checking accounts, and time deposits, as well as certificates of deposit. The company also provides commercial loan products and services, including term loans, revolving lines of credit, construction financing, and cash management products; small business administration loans; and small ticket equipment leasing services, as well as online, mobile, and direct banking services. It operates through 55 branch offices in Chicago metropolitan area; and 1 branch office in Brookfield, Wisconsin. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was incorporated in 1978 and is headquartered in Chicago, Illinois.

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