Financial Survey: First Northern Community Bancorp (OTCMKTS:FNRN) versus Five Star Bancorp (NASDAQ:FSBC)

First Northern Community Bancorp (OTCMKTS:FNRN) and Five Star Bancorp (NASDAQ:FSBC) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Volatility and Risk

First Northern Community Bancorp has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500. Comparatively, Five Star Bancorp has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Earnings & Valuation

This table compares First Northern Community Bancorp and Five Star Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Northern Community Bancorp	$75.18 million	3.86	$21.13 million	$1.40	12.64
Five Star Bancorp	$255.47 million	3.38	$61.61 million	$3.15	12.82

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

Insider and Institutional Ownership

17.9% of First Northern Community Bancorp shares are owned by institutional investors. Comparatively, 46.9% of Five Star Bancorp shares are owned by institutional investors. 11.9% of First Northern Community Bancorp shares are owned by insiders. Comparatively, 21.8% of Five Star Bancorp 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Northern Community Bancorp	23.90%	10.57%	1.12%
Five Star Bancorp	25.23%	15.32%	1.42%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for First Northern Community Bancorp and Five Star Bancorp, 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
Five Star Bancorp	0	2	4	0	2.67

Five Star Bancorp has a consensus price target of $42.30, suggesting a potential upside of 4.73%. Given Five Star Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Five Star Bancorp is more favorable than First Northern Community Bancorp.

Summary

Five Star Bancorp beats First Northern Community Bancorp on 12 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 Five Star Bancorp

Five Star Bancorp operates as the bank holding company for Five Star Bank that provides a range of banking products and services to small and medium-sized businesses, professionals, and individuals in Northern California. It accepts various deposits, such as money market accounts, noninterest-bearing and interest checking accounts, savings accounts, term certificate accounts, and time deposits. The company also offers loan products, including commercial and residential real estate loans; commercial loans; commercial land loans; farmland loans; commercial and residential construction loans; and consumer and other loans, as well as operating lines of credit. In addition, it provides debit cards; and remote deposit capture, online and mobile banking, and direct deposit services. Five Star Bancorp was founded in 1999 and is headquartered in Rancho Cordova, California.