Critical Contrast: HomeStreet (NASDAQ:HMST) versus FVCBANKCORP Inc/SH (NASDAQ:FVCB)

HomeStreet (NASDAQ:HMST) and FVCBANKCORP Inc/SH (OTCMKTS:FVCB) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for HomeStreet and FVCBANKCORP Inc/SH, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HomeStreet 0 1 2 0 2.67
FVCBANKCORP Inc/SH 0 0 1 0 3.00

HomeStreet presently has a consensus price target of $31.00, suggesting a potential upside of 16.45%. FVCBANKCORP Inc/SH has a consensus price target of $20.00, suggesting a potential upside of 14.94%. Given HomeStreet’s higher possible upside, research analysts clearly believe HomeStreet is more favorable than FVCBANKCORP Inc/SH.

Valuation & Earnings

This table compares HomeStreet and FVCBANKCORP Inc/SH’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HomeStreet $507.66 million 1.28 $40.03 million $1.48 17.99
FVCBANKCORP Inc/SH N/A N/A N/A N/A N/A

HomeStreet has higher revenue and earnings than FVCBANKCORP Inc/SH.

Profitability

This table compares HomeStreet and FVCBANKCORP Inc/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HomeStreet 4.74% 4.74% 0.48%
FVCBANKCORP Inc/SH N/A N/A N/A

Institutional & Insider Ownership

89.1% of HomeStreet shares are owned by institutional investors. Comparatively, 4.2% of FVCBANKCORP Inc/SH shares are owned by institutional investors. 1.6% of HomeStreet shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

HomeStreet beats FVCBANKCORP Inc/SH on 8 of the 9 factors compared between the two stocks.

HomeStreet Company Profile

HomeStreet, Inc. operates as the bank holding company for HomeStreet Bank, a state-chartered commercial bank that provides commercial and consumer banking services primarily in the Pacific Northwest, California, and Hawaii. The company operates in two segments, Commercial and Consumer Banking, and Mortgage Banking. The Commercial and Consumer Banking segment offers deposit products; non-deposit investment products; and insurance products and cash management services. It also offers consumer loans, single family residential mortgages, loans secured by commercial real estate, construction loans for residential and commercial real estate projects, commercial business loans, and agricultural loans; and bridge loans and permanent loans primarily on single family residences, as well as on office, retail, industrial, and multifamily property types. This segment provides its products and services through bank branches, lending centers, and ATMs, as well as through online, mobile, and telephone banking. The Mortgage Banking segment originates single family residential mortgage loans for sale in the secondary market. This segment is also involved in the sale of loans on a servicing-released and servicing-retained basis to securitizers and correspondent lenders. As of December 31, 2018, it had a network of 60 retail deposit branches located in Washington state, Southern California, the Portland, Oregon, and Hawaii; and 32 primary stand-alone home loan centers and 6 primary commercial lending centers. The company was formerly known as Continental Mortgage and Loan Company. HomeStreet, Inc. was founded in 1921 and is headquartered in Seattle, Washington.

FVCBANKCORP Inc/SH Company Profile

FVCBankcorp, Inc. provides various banking products and services in Fairfax, Virginia. It offers various personal and business banking products and services, such as checking and savings accounts, money market accounts, certificates of deposit, individual retirement accounts, and health savings accounts. The company also provides business lines of credit, business automated overdraft lines of credit, business owner's guidance lines of credit, business loans, business construction loans, business loans for emerging residential builders, business mortgage loans, and business loans for professionals; commercial real estate lending, including office, retail, industrial, warehouse/flex space, non-profit, mini-storage facilities, multi-family, commercial construction, residential/multi-family construction, land acquisitions, and bridge loans; and automobile and personal loans, as well as overdraft lines of credit on various personal checking accounts. In addition, it offers credit cards and online banking services. Further, the company provides treasury management services comprising automated clearing house services, merchant services, zero balance and escrow accounts, and ACH positive authorization services; and government contractor banking services. Additionally, it offers life, disability, auto, homeowners coverage, building/property, business interruption, general liability, cybersecurity, employee health benefits, and contractor/builder bonds insurance products. FVCBankcorp, Inc. was founded in 2015 and is headquartered in Fairfax, Virginia.

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