Financial Contrast: First Northern Community Bancorp (OTCMKTS:FNRN) & CPB (NYSE:CPF)

First Northern Community Bancorp (OTCMKTS:FNRN) and CPB (NYSE:CPF) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for First Northern Community Bancorp and CPB, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Northern Community Bancorp	0	0	0	0	0.00
CPB	0	1	2	0	2.67

CPB has a consensus target price of $34.50, suggesting a potential upside of 19.17%. Given CPB’s stronger consensus rating and higher probable upside, analysts clearly believe CPB is more favorable than First Northern Community Bancorp.

Institutional and Insider Ownership

17.9% of First Northern Community Bancorp shares are owned by institutional investors. Comparatively, 88.4% of CPB shares are owned by institutional investors. 11.8% of First Northern Community Bancorp shares are owned by insiders. Comparatively, 2.4% of CPB shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

First Northern Community Bancorp has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500. Comparatively, CPB has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Profitability

This table compares First Northern Community Bancorp and CPB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Northern Community Bancorp	23.58%	11.03%	1.08%
CPB	18.66%	13.28%	1.01%

Valuation and Earnings

This table compares First Northern Community Bancorp and CPB”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Northern Community Bancorp	$84.67 million	2.42	$20.03 million	$1.31	9.96
CPB	$270.52 million	2.87	$53.41 million	$2.43	11.91

CPB has higher revenue and earnings than First Northern Community Bancorp. First Northern Community Bancorp is trading at a lower price-to-earnings ratio than CPB, indicating that it is currently the more affordable of the two stocks.

Summary

CPB beats First Northern Community Bancorp on 11 of the 14 factors compared between the two stocks.

About First Northern Community Bancorp

First Northern Community Bancorp operates as the bank holding company for First Northern Bank of Dixon that provides commercial banking products and services to individuals, and small and medium sized businesses. The company accepts demand deposits, interest-bearing transaction deposits, savings and money market deposit accounts, and time deposits. It also offers commercial, commercial real estate, agriculture, residential mortgage, residential construction, and consumer loans. In addition, the company provides debit and credit cards; investment and brokerage services; alternative investment products, and fiduciary and other financial services; and equipment leasing, merchant card processing, payroll, and international banking services through third parties. Further, it offers cashier's checks, safe deposit boxes, and other customary banking services. The company operates branches located in the cities of Auburn, Colusa, Davis, Dixon, Fairfield, Orland, Rancho Cordova, Roseville, Sacramento, Vacaville, West Sacramento, Winters, Willows, and Woodland; satellite banking office inside a retirement community in the city of Davis; residential mortgage loan office in Davis; and commercial loan office in the Contra Costa County city of Walnut Creek. First Northern Community Bancorp was founded in 1910 and is headquartered in Dixon, California.

About CPB

Central Pacific Financial Corp. operates as the bank holding company for Central Pacific Bank that provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products and services, including checking, savings and time deposits, cash management and digital banking, trust, and retail brokerage services, as well as money market accounts and certificates of deposit. The company also provides various lending activities, such as commercial, commercial and residential mortgage, home equity, and consumer loans; and other products and services comprising debit cards, internet and mobile banking, cash management services, full-service ATMs, safe deposit boxes, international banking services, night depository facilities, foreign exchange, and wire transfers. In addition, it offers wealth management products and services that include non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation, and planning services. The company was founded in 1954 and is headquartered in Honolulu, Hawaii.