Critical Analysis: First Us Bancsh (NASDAQ:FUSB) and F.N.B. (NYSE:FNB)

First Us Bancsh (NASDAQ:FUSB) and F.N.B. (NYSE:FNB) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Insider & Institutional Ownership

18.7% of First Us Bancsh shares are held by institutional investors. Comparatively, 79.3% of F.N.B. shares are held by institutional investors. 11.2% of First Us Bancsh shares are held by insiders. Comparatively, 1.4% of F.N.B. shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

First Us Bancsh has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, F.N.B. has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for First Us Bancsh and F.N.B., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Us Bancsh	0	1	0	0	2.00
F.N.B.	0	1	5	0	2.83

F.N.B. has a consensus target price of $19.00, indicating a potential upside of 8.34%. Given F.N.B.’s stronger consensus rating and higher possible upside, analysts clearly believe F.N.B. is more favorable than First Us Bancsh.

Profitability

This table compares First Us Bancsh and F.N.B.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Us Bancsh	8.98%	5.49%	0.49%
F.N.B.	19.23%	8.22%	1.08%

Dividends

First Us Bancsh pays an annual dividend of $0.28 per share and has a dividend yield of 2.0%. F.N.B. pays an annual dividend of $0.48 per share and has a dividend yield of 2.7%. First Us Bancsh pays out 30.1% of its earnings in the form of a dividend. F.N.B. pays out 34.5% 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. First Us Bancsh has raised its dividend for 3 consecutive years.

Earnings and Valuation

This table compares First Us Bancsh and F.N.B.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Us Bancsh	$61.84 million	1.33	$8.17 million	$0.93	15.28
F.N.B.	$2.57 billion	2.45	$465.00 million	$1.39	12.62

F.N.B. has higher revenue and earnings than First Us Bancsh. F.N.B. is trading at a lower price-to-earnings ratio than First Us Bancsh, indicating that it is currently the more affordable of the two stocks.

Summary

F.N.B. beats First Us Bancsh on 13 of the 17 factors compared between the two stocks.

About First Us Bancsh

First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services. The company offers non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include commercial construction, land, and land development loans, including residential housing projects, commercial and industrial development, and for purchase and improvement of raw land for agricultural production; mortgage loans on one-to-four family and multi-family residential properties; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, and other commercial properties; commercial and industrial loans and leases; and secured and unsecured personal loans, including automobile loans, loans for household and personal purposes, and other direct consumer installment loans. The company also provides loans secured by collateral in form of personal property items. In addition, it provides letters of credit; and safe deposit box and remote deposit capture services. The company serves small-and medium-sized businesses, property managers, business executives, professionals, and other individuals. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is headquartered in Birmingham, Alabama.

About F.N.B.

F.N.B. Corporation, a bank and financial holding company, provides a range of financial products and services primarily to consumers, corporations, governments, and small- to medium-sized businesses in the United States. The company operates through three segments: Community Banking, Wealth Management, and Insurance. The Community Banking segment offers commercial and consumer banking services, including corporate and small business banking, investment real estate financing, business credit, capital market, and lease financing services. It also provides consumer banking products and services, such as deposit products, mortgage and consumer lending services, and mobile and online banking services. The Wealth Management segment provides personal and corporate fiduciary services comprising administration of decedent and trust estates; and securities brokerage and investment advisory services, mutual funds, and annuities. The Insurance segment comprises commercial and personal insurance, and reinsurance products, as well as mezzanine financing options for small- to medium-sized businesses. The company operates community banking branches in Pennsylvania, Ohio, Maryland, West Virginia, North Carolina, South Carolina, Washington, D.C., and Virginia. F.N.B. Corporation was founded in 1864 and is headquartered in Pittsburgh, Pennsylvania.