First Business Financial Services (NASDAQ:FBIZ) and BSB Bancorp (NASDAQ:BLMT) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.
Valuation and Earnings
This table compares First Business Financial Services and BSB Bancorp’s top-line revenue, earnings per share (EPS) and valuation.
BSB Bancorp has lower revenue, but higher earnings than First Business Financial Services.
This table compares First Business Financial Services and BSB Bancorp’s net margins, return on equity and return on assets.
First Business Financial Services pays an annual dividend of $0.60 per share and has a dividend yield of 2.5%. BSB Bancorp does not pay a dividend. First Business Financial Services pays out 32.3% of its earnings in the form of a dividend. First Business Financial Services has raised its dividend for 2 consecutive years.
Institutional & Insider Ownership
63.3% of First Business Financial Services shares are held by institutional investors. Comparatively, 48.3% of BSB Bancorp shares are held by institutional investors. 5.3% of First Business Financial Services shares are held by insiders. Comparatively, 14.4% of BSB Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings and recommmendations for First Business Financial Services and BSB Bancorp, as reported by MarketBeat.
First Business Financial Services presently has a consensus target price of $27.50, suggesting a potential upside of 14.06%. Given First Business Financial Services’ higher possible upside, analysts clearly believe First Business Financial Services is more favorable than BSB Bancorp.
Volatility & Risk
First Business Financial Services has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, BSB Bancorp has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.
First Business Financial Services beats BSB Bancorp on 9 of the 15 factors compared between the two stocks.
First Business Financial Services Company Profile
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. The company offers deposit products, such as non-interest-bearing transaction accounts, interest-bearing transaction accounts, money market accounts, time deposits, and certificates of deposit. It also provides loan products, including commercial real estate loans, commercial and industrial loans, small business administration loans, and direct financing leases, as well as consumer and other loans comprising home equity, second mortgage, credit card, and other personal loans for professional and executive clients. In addition, the company offers commercial lending, asset-based financing, equipment financing, treasury management, and trust and investment. Further, it provides lines of credit and factored receivable financing, and term loans secured by accounts receivable, inventory, equipment, and real estate assets primarily to manufacturers and wholesale distribution companies; and new and replacement equipment loan and lease, debt restructuring, consolidation, and sale-lease-back transaction services. The company holds an equity investment in a Madison, Wisconsin community development project; and invests in marketable securities and tax-exempt loans. First Business Financial Services, Inc. was incorporated in 1986 and is headquartered in Madison, Wisconsin.
BSB Bancorp Company Profile
BSB Bancorp, Inc. operates as the holding company for Belmont Savings Bank that provides commercial and retail banking services to small businesses, municipalities, nonprofit organizations, and other customers in the United States. Its deposit products include relationship checking accounts for consumers and businesses, passbook and statement savings accounts, certificates of deposit, money market accounts, interest on lawyer trust accounts, and individual retirement accounts, as well as commercial, municipal, and regular checking accounts. The company's loan portfolio comprises one to four family residential mortgage loans, commercial real estate loans, multi-family real estate loans, home equity lines of credit, indirect automobile loans, commercial business loans, construction loans and investment securities, other consumer loans, and second mortgage loans. BSB Bancorp, Inc. also offers lockbox, online and mobile banking, global payments, and cash management services. It operates through six full-service branch offices located in Belmont, Watertown, Waltham, Newton, and Cambridge in Southeast Middlesex County, Massachusetts. The company was incorporated in 2011 and is headquartered in Belmont, Massachusetts.