First Business Financial Services (NASDAQ:FBIZ – Get Free Report) and Auburn National Bancorporation (NASDAQ:AUBN – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.
Insider and Institutional Ownership
60.1% of First Business Financial Services shares are held by institutional investors. Comparatively, 39.5% of Auburn National Bancorporation shares are held by institutional investors. 5.0% of First Business Financial Services shares are held by insiders. Comparatively, 18.7% of Auburn National Bancorporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares First Business Financial Services and Auburn National Bancorporation”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| First Business Financial Services | $279.25 million | 2.18 | $50.32 million | $6.56 | 11.11 |
| Auburn National Bancorporation | $34.26 million | 2.70 | $7.26 million | $2.41 | 11.02 |
First Business Financial Services has higher revenue and earnings than Auburn National Bancorporation. Auburn National Bancorporation is trading at a lower price-to-earnings ratio than First Business Financial Services, indicating that it is currently the more affordable of the two stocks.
Dividends
First Business Financial Services pays an annual dividend of $1.36 per share and has a dividend yield of 1.9%. Auburn National Bancorporation pays an annual dividend of $1.08 per share and has a dividend yield of 4.1%. First Business Financial Services pays out 20.7% of its earnings in the form of a dividend. Auburn National Bancorporation pays out 44.8% 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. First Business Financial Services has raised its dividend for 13 consecutive years.
Analyst Ratings
This is a summary of current recommendations and price targets for First Business Financial Services and Auburn National Bancorporation, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| First Business Financial Services | 0 | 0 | 3 | 1 | 3.25 |
| Auburn National Bancorporation | 0 | 1 | 0 | 0 | 2.00 |
First Business Financial Services currently has a consensus target price of $75.50, indicating a potential upside of 3.64%. Given First Business Financial Services’ stronger consensus rating and higher possible upside, equities research analysts plainly believe First Business Financial Services is more favorable than Auburn National Bancorporation.
Profitability
This table compares First Business Financial Services and Auburn National Bancorporation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| First Business Financial Services | 19.28% | 14.92% | 1.29% |
| Auburn National Bancorporation | 18.60% | 9.10% | 0.81% |
Volatility and Risk
First Business Financial Services has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Auburn National Bancorporation has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.
Summary
First Business Financial Services beats Auburn National Bancorporation on 15 of the 18 factors compared between the two stocks.
About First Business Financial Services
First Business Financial Services, Inc. operates as the bank holding company for First Business Bank that provides commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals in Wisconsin, Kansas, and Missouri. The company offers real estate lending, commercial and industrial lending, asset-based lending, accounts receivable financing, equipment financing loans and leases, floorplan financing, vendor financing, small business administration lending and servicing, treasury management solutions, and company retirement services. It also provides private wealth management for individuals, including creating and executing asset allocation strategies, trust and estate administration, financial planning, investment management, and access to brokerage and custody-only services. In addition, the company offers bank consulting consisting of investment portfolio administrative and asset liability management services, and commercial deposit accounts. The company was founded in 1909 and is headquartered in Madison, Wisconsin.
About Auburn National Bancorporation
Auburn National Bancorporation, Inc. operates as the bank holding company for AuburnBank that provides various banking products and services in East Alabama. The company offers checking, savings, and transaction deposit accounts, as well as certificates of deposit. It also provides commercial, financial, agricultural, real estate construction, and consumer loan products; and other financial services. In addition, the company offers automated teller services; debit cards; online banking, bill payment, and other electronic banking services; and safe deposit boxes. Auburn National Bancorporation, Inc. was founded in 1907 and is headquartered in Auburn, Alabama.
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