Five Star Bancorp (NASDAQ:FSBC – Get Free Report) and Republic Bancorp (NASDAQ:RBCAA – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.
Insider and Institutional Ownership
46.9% of Five Star Bancorp shares are held by institutional investors. Comparatively, 24.4% of Republic Bancorp shares are held by institutional investors. 21.8% of Five Star Bancorp shares are held by company insiders. Comparatively, 55.9% of Republic Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and recommmendations for Five Star Bancorp and Republic Bancorp, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Five Star Bancorp | 0 | 3 | 2 | 0 | 2.40 |
| Republic Bancorp | 0 | 2 | 1 | 1 | 2.75 |
Five Star Bancorp presently has a consensus price target of $49.00, indicating a potential upside of 10.31%. Republic Bancorp has a consensus price target of $98.00, indicating a potential upside of 7.55%. Given Five Star Bancorp’s higher possible upside, research analysts plainly believe Five Star Bancorp is more favorable than Republic Bancorp.
Profitability
This table compares Five Star Bancorp and Republic Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Five Star Bancorp | 26.58% | 15.55% | 1.50% |
| Republic Bancorp | 25.33% | 11.12% | 1.78% |
Earnings and Valuation
This table compares Five Star Bancorp and Republic Bancorp”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Five Star Bancorp | $255.47 million | 4.27 | $61.61 million | $3.53 | 12.58 |
| Republic Bancorp | $414.06 million | 4.32 | $131.32 million | $6.62 | 13.76 |
Republic Bancorp has higher revenue and earnings than Five Star Bancorp. Five Star Bancorp is trading at a lower price-to-earnings ratio than Republic Bancorp, indicating that it is currently the more affordable of the two stocks.
Dividends
Five Star Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. Republic Bancorp pays an annual dividend of $1.98 per share and has a dividend yield of 2.2%. Five Star Bancorp pays out 28.3% of its earnings in the form of a dividend. Republic Bancorp pays out 29.9% 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. Republic Bancorp has raised its dividend for 27 consecutive years. Five Star Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
Five Star Bancorp has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500. Comparatively, Republic Bancorp has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.
Summary
Republic Bancorp beats Five Star Bancorp on 11 of the 18 factors compared between the two stocks.
About Five Star Bancorp
Five Star Bancorp is a bank holding company headquartered in Rancho Cordova, California. It operates through its subsidiary, Five Star Bank, which provides commercial and consumer banking services to businesses, organizations and individuals. The bank offers deposit accounts, business and personal lending, cash management and other banking services. Its lending activities include financing for commercial real estate and business needs, alongside services for professionals and nonprofit organizations.
About Republic Bancorp
Republic Bancorp, Inc. is a financial holding company headquartered in Louisville, Kentucky. Through its subsidiary, Republic Bank & Trust Company, it provides personal and business banking services, including deposit accounts, loans, mortgage products and cash-management services. The company also offers tax refund processing and related financial products through its Tax Refund Solutions business. These services support tax preparers and their customers across the United States. Republic Bank serves customers through banking locations in Kentucky, Indiana, Ohio and Florida, as well as through digital banking channels.
Receive News & Ratings for Five Star Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Five Star Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.
