BankUnited (NYSE:BKU – Get Free Report) and 1st Colonial Bancorp (OTCMKTS:FCOB – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.
Institutional and Insider Ownership
99.7% of BankUnited shares are held by institutional investors. Comparatively, 13.4% of 1st Colonial Bancorp shares are held by institutional investors. 1.0% of BankUnited shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares BankUnited and 1st Colonial Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BankUnited | 14.76% | 9.13% | 0.79% |
| 1st Colonial Bancorp | 14.71% | 10.87% | 1.04% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BankUnited | 3 | 4 | 6 | 1 | 2.36 |
| 1st Colonial Bancorp | 0 | 0 | 0 | 0 | 0.00 |
BankUnited currently has a consensus target price of $51.64, indicating a potential upside of 11.24%. Given BankUnited’s stronger consensus rating and higher possible upside, equities research analysts clearly believe BankUnited is more favorable than 1st Colonial Bancorp.
Risk and Volatility
BankUnited has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, 1st Colonial Bancorp has a beta of 0.02, suggesting that its share price is 98% less volatile than the S&P 500.
Valuation & Earnings
This table compares BankUnited and 1st Colonial Bancorp”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BankUnited | $1.12 billion | 2.95 | $268.35 million | $3.65 | 12.72 |
| 1st Colonial Bancorp | $49.61 million | 2.04 | $7.30 million | $1.48 | 13.51 |
BankUnited has higher revenue and earnings than 1st Colonial Bancorp. BankUnited is trading at a lower price-to-earnings ratio than 1st Colonial Bancorp, indicating that it is currently the more affordable of the two stocks.
Summary
BankUnited beats 1st Colonial Bancorp on 12 of the 15 factors compared between the two stocks.
About BankUnited
BankUnited, Inc. operates as the bank holding company for BankUnited, a national banking association that provides a range of banking services in the United States. The company offers deposit products, such as checking, money market deposit, and savings accounts; certificates of deposit; and treasury, commercial payment, and cash management services. Its loans portfolio includes commercial loans, including equipment loans, secured and unsecured lines of credit, formula-based lines of credit, owner-occupied commercial real estate term loans and lines of credit, mortgage warehouse lines, subscription finance facilities, letters of credit, commercial credit cards, small business administration and U.S. department of agriculture product offerings, export-import bank financing products, trade finance, and business acquisition finance credit facilities; commercial real estate loans; residential mortgages; and other consumer loans. The company offers online, mobile, and telephone banking services. It operates through a network of banking centers located in Florida counties and the New York metropolitan area, as well as Dallas, Texas. The company was formerly known as BU Financial Corporation. BankUnited, Inc. was incorporated in 2009 and is headquartered in Miami Lakes, Florida.
About 1st Colonial Bancorp
1st Colonial Bancorp, Inc. operates as the bank holding company for 1st Colonial Community Bank that provides a range of business and consumer financial services in New Jersey. The company offers various deposit products, including savings accounts, money market accounts, certificates of deposit, club accounts, and business and personal checking accounts. It also provides home equity loans, home equity lines of credit, personal and vehicle loans, residential and commercial mortgages, construction loans, business lines of credit, equipment and vehicle financing, real estate loans, working capital line of credit, and business acquisition loans, as well as small business administration loans. In addition, the company offers cash management services comprising remote deposit capture, ACH/wire transfer, night deposit drop, and merchant services; safe deposit boxes; and coin counting, online and mobile banking, debit card, and ATM services. The company was founded in 2000 and is headquartered in Mount Laurel, New Jersey.
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