U.S.A Bank (OTCMKTS:USBK – Get Free Report) and First Bank (NASDAQ:FRBA – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.
Profitability
This table compares U.S.A Bank and First Bank’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
U.S.A Bank | N/A | N/A | N/A |
First Bank | 18.19% | 11.80% | 1.25% |
Institutional and Insider Ownership
64.9% of First Bank shares are owned by institutional investors. 13.1% of First Bank shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
Analyst Ratings
This is a summary of current ratings for U.S.A Bank and First Bank, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
U.S.A Bank | 0 | 0 | 0 | 0 | N/A |
First Bank | 0 | 0 | 1 | 0 | 3.00 |
First Bank has a consensus price target of $17.00, indicating a potential upside of 21.43%. Given First Bank’s higher possible upside, analysts clearly believe First Bank is more favorable than U.S.A Bank.
Valuation and Earnings
This table compares U.S.A Bank and First Bank”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
U.S.A Bank | N/A | N/A | N/A | N/A | N/A |
First Bank | $120.30 million | 2.28 | $20.90 million | $1.59 | 8.81 |
First Bank has higher revenue and earnings than U.S.A Bank.
Summary
First Bank beats U.S.A Bank on 9 of the 9 factors compared between the two stocks.
About U.S.A Bank
As of July 10, 2010, U.S.A Bank was acquired by Customers Bank (Phoenixville, Pennsylvania). U.S.A Bank operates as a community bank in New York. It offers deposit products, Internet banking, ATM cards, consumer loans, and residential and commercial loans. U.S.A Bank was founded in 2005 and is based in Port Chester, New York.
About First Bank
First Bank provides various banking products and services to small to mid-sized businesses and individuals. The company accepts various deposits, including non-interest-bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. It also offers various loan products comprising commercial and industrial loans, which include line of credit, inventory, equipment, and short-term working capital financing; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer and other loans consists of auto, personal, traditional installment, and other loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone; ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services, as well as engages in the capital markets activities. It operates full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington, Hamilton, Lawrence, Monroe, Pennington, Randolph, Somerset, and Williamstown, New Jersey; Doylestown, Trevose, Warminster, and West Chester, Paoli, Malvern, Coventry, Devon, Lionville, and Glen Mills Pennsylvania; and Palm Beach, Florida. First Bank was incorporated in 2007 and is headquartered in Hamilton, New Jersey.
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