First US Bancshares (NASDAQ:FUSB) and 1st Source (NASDAQ:SRCE) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Valuation & Earnings
This table compares First US Bancshares and 1st Source’s top-line revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
|First US Bancshares
1st Source has higher revenue and earnings than First US Bancshares.
This table compares First US Bancshares and 1st Source’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|First US Bancshares
First US Bancshares pays an annual dividend of $0.08 per share and has a dividend yield of 0.9%. 1st Source pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. 1st Source pays out 40.0% of its earnings in the form of a dividend. 1st Source has increased its dividend for 32 consecutive years. 1st Source is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
First US Bancshares has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, 1st Source has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.
Institutional and Insider Ownership
15.5% of First US Bancshares shares are owned by institutional investors. Comparatively, 71.1% of 1st Source shares are owned by institutional investors. 9.7% of First US Bancshares shares are owned by insiders. Comparatively, 19.9% of 1st Source shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a summary of current ratings for First US Bancshares and 1st Source, as reported by MarketBeat.
||Strong Buy Ratings
|First US Bancshares
1st Source has a consensus price target of $56.00, indicating a potential upside of 24.36%. Given 1st Source’s higher probable upside, analysts plainly believe 1st Source is more favorable than First US Bancshares.
1st Source beats First US Bancshares on 13 of the 15 factors compared between the two stocks.
First US Bancshares Company Profile
First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services in Alabama. The company accepts deposit products, such as non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include loans for the development of residential housing projects, development of commercial and industrial use property, and purchase and improvement of raw land; mortgage loans on one-to-four family residential properties and secured by apartment buildings; home equity loans and lines of credit; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, or other commercial property; loans for agricultural production; commercial and industrial loans; and automobile, household and personal, and other direct consumer installment loans. The company also provides letters of credit; debit and credit cards; ATMs; and safe deposit box, remote deposit capture, wire transfer, and real estate rental services, as well as reinsures or underwrites credit life, and credit accident and health insurance policies. First US Bancshares, Inc. serves small- and medium-sized businesses, property managers, business executives, professionals, and other individuals. It operates and serves its customers through 16 full-service banking offices located in Birmingham, Bucksville, Butler, Calera, Centreville, Columbiana, Gilbertown, Grove Hill, Harpersville, Jackson, Thomasville, Tuscaloosa, and Woodstock, Alabama; and a loan production office located in Mountain Brook, a suburb of Birmingham, Alabama. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is based in Birmingham, Alabama.
1st Source Company Profile
1st Source Corporation operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and investment management services, and insurance to individual and business clients. Its consumer banking services include checking and savings accounts; certificates of deposit; individual retirement accounts; online and mobile banking products; consumer loans, real estate loans, and lines of credit; and financial planning, financial literacy, and other consultative services, as well as debit and credit cards. The company also offers commercial, small business, agricultural, and real estate loans for general corporate purposes, including financing for industrial and commercial properties, equipment, inventories, accounts receivables, and acquisition financing; and commercial leasing, treasury management, and retirement planning services. In addition, it provides a range of trust, investment, agency, and custodial services comprising administration of estates and personal trusts, as well as management of investment accounts for individuals, employee benefit plans, and charitable foundations. Further, the company offers equipment loan and lease products for new and used aircraft, auto and light trucks, construction equipment, and medium and heavy duty trucks; and leases construction equipment, various types of trucks, vans, automobiles, motor coaches, shuttle buses, and other equipment. Additionally, it provides corporate and personal property, casualty, and individual and group health and life insurance products and services; and investment advisory services to trust and investment clients. As of December 31, 2017, the company operated through 79 banking centers in 17 counties in Indiana and Michigan, and Sarasota County in Florida. 1st Source Corporation was founded in 1863 and is headquartered in South Bend, Indiana.
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