Analyzing Sound Financial Bancorp (NASDAQ:SFBC) & First National Bank Alaska (OTCMKTS:FBAK)

Sound Financial Bancorp (NASDAQ:SFBC) and First National Bank Alaska (OTCMKTS:FBAK) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Risk and Volatility

Sound Financial Bancorp has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500. Comparatively, First National Bank Alaska has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500.

Valuation & Earnings

This table compares Sound Financial Bancorp and First National Bank Alaska”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sound Financial Bancorp	$62.03 million	1.82	$4.64 million	$2.64	16.66
First National Bank Alaska	$87.73 million	N/A	$67.05 million	$24.44	12.35

First National Bank Alaska has higher revenue and earnings than Sound Financial Bancorp. First National Bank Alaska is trading at a lower price-to-earnings ratio than Sound Financial Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

Sound Financial Bancorp pays an annual dividend of $0.76 per share and has a dividend yield of 1.7%. First National Bank Alaska pays an annual dividend of $16.00 per share and has a dividend yield of 5.3%. Sound Financial Bancorp pays out 28.8% of its earnings in the form of a dividend. First National Bank Alaska pays out 65.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Sound Financial Bancorp has increased its dividend for 2 consecutive years.

Profitability

This table compares Sound Financial Bancorp and First National Bank Alaska’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sound Financial Bancorp	10.97%	6.48%	0.65%
First National Bank Alaska	29.11%	14.98%	1.55%

Insider and Institutional Ownership

68.9% of Sound Financial Bancorp shares are owned by institutional investors. 12.4% of Sound Financial Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Sound Financial Bancorp and First National Bank Alaska, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sound Financial Bancorp	0	1	0	0	2.00
First National Bank Alaska	0	0	0	0	0.00

Summary

First National Bank Alaska beats Sound Financial Bancorp on 8 of the 14 factors compared between the two stocks.

About Sound Financial Bancorp

Sound Financial Bancorp, Inc. operates as the bank holding company for Sound Community Bank that provides banking and other financial services for consumers and businesses. It accepts various deposits products comprising savings, money market deposit, NOW, and demand accounts, as well as certificates of deposit. The company also offers loans secured by first and second mortgages on one-to four-family residences; home equity loans, including fixed-rate loans and variable-rate lines of credit; commercial and multifamily real estate loans; construction loans secured by single-family residences, and commercial and multifamily real estate; land loans; commercial business loans to finance commercial vehicles and equipment, as well as loans secured by accounts receivable and/or inventory; and secured and unsecured consumer loans, such as new and used manufactured homes, floating homes, automobiles, boats, and recreational vehicle loans, and loans secured by deposit accounts. The company was founded in 1953 and is headquartered in Seattle, Washington.

About First National Bank Alaska

First National Bank Alaska, a commercial bank, provides various banking products and services for business, industry, and individual customers primarily in Alaska. The company offers savings and checking accounts; money market deposits; safe deposit services; certificates of deposit; individual retirement accounts; and personal, home equity, and construction loans, as well as loans for stability and growth. It also provides investment, treasury, trust, and wealth management services; and escrow and contract collection, and bankcard services. In addition, the company offers debit and credit cards, online and mobile banking, fraud prevention, and convenience banking services. First National Bank Alaska was founded in 1922 and is headquartered in Anchorage, Alaska.