Financial investigation of Five Star Bancorp (NASDAQ:FSBC) and First Bancorp (NASDAQ:FBNC)


Five Star Bancorp (NASDAQ:FSBC – Get Rating) and First Bancorp (NASDAQ:FBNC – Get Rating) are both small cap finance companies, but which company is better? We’ll compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Insider and Institutional Ownership

37.1% of Five Star Bancorp shares are held by institutional investors. By comparison, 68.6% of First Bancorp’s shares are held by institutional investors. 27.7% of the shares of Five Star Bancorp are held by insiders of the company. By comparison, 1.9% of First Bancorp’s shares are held by insiders of the company. Strong institutional ownership indicates that endowments, hedge funds, and large fund managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of the current ratings and recommendations for Five Star Bancorp and First Bancorp, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Five Star Bancorp 0 0 3 0 3.00
First Bancorp 0 1 1 0 2.50

Five Star Bancorp currently has a consensus target price of $29.67, suggesting a potential upside of 18.57%. First Bancorp has a consensus target price of $50.50, suggesting a potential upside of 40.20%. Given First Bancorp’s possible higher upside, analysts clearly believe that First Bancorp is more favorable than Five Star Bancorp.

Dividends

Five Star Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 2.4%. First Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.4%. Five Star Bancorp pays 23.5% of its profits as a dividend. First Bancorp pays 27.1% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. First Bancorp has increased its dividend for 2 consecutive years. First Bancorp is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.

Valuation and benefits

This chart compares the revenue, earnings per share (EPS), and valuation of Five Star Bancorp and First Bancorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Five Star Bancorp $88.86 million 4.86 $42.44 million $2.55 9.81
First Bancorp $329.53 million 3.89 $95.64 million $3.25 11.08

First Bancorp has higher revenue and profit than Five Star Bancorp. Five Star Bancorp trades at a lower price-to-earnings ratio than First Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on assets of Five Star Bancorp and First Bancorp.

Net margins Return on equity return on assets
Five Star Bancorp 45.14% 18.45% 1.66%
First Bancorp 29.04% 10.92% 1.21%

Five Star Bancorp Company Profile (Get a rating)

Five Star Bancorp operates as a bank holding company for Five Star Bank which provides a range of banking products and services to small and medium businesses, professionals and individuals. The company accepts various deposits, such as money market accounts, interest-free and interest-free checking accounts, savings accounts, and term deposits. Its lending products include commercial and residential real estate loans; business loans; commercial land loans; agricultural land loans; commercial and residential construction loans; and consumer and other loans. The company also offers debit cards; and remote deposit capture, online and mobile banking, and direct deposit services. It operates through seven branches and two loan origination offices in Northern California. Five Star Bancorp was founded in 1999 and is headquartered in Rancho Cordova, California.

First Bancorp Company Profile (Get a rating)

First Bancorp logoFirst Bancorp operates as a bank holding company for First Bank which provides banking products and services to individuals and small and medium-sized businesses, primarily in North Carolina and northeastern South Carolina. It accepts deposit products, such as checking, savings, and money market accounts, as well as term deposits, including certificates of deposit and individual retirement accounts. The Company also offers loans for consumer and commercial purposes, including business, real estate, personal, home improvement and automobile loans, as well as residential mortgages and government loans. small enterprises ; and accounts receivable financing and factoring, inventory financing and purchase order financing services. In addition, it provides credit and debit cards, letters of credit and safe deposit box rental services, as well as electronic funds transfer services consisting of wire transfers; and internet and mobile banking, cash management, telephone banking and remote deposit collection services. In addition, the Company offers investment and insurance products, such as mutual funds, annuities, long-term care insurance, life insurance and corporate pension plans, as well as P&C insurance products; and financial planning services. As of December 31, 2021, it operated 121 branches comprising 114 branches located in North Carolina and seven branches in South Carolina. First Bancorp was founded in 1934 and is headquartered in Southern Pines, North Carolina.



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About Teresa G. Wilson

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