SB Financial Group (NASDAQ:SBFG) vs. Five Star Bancorp (NASDAQ:FSBC) Head-To-Head Analysis

Five Star Bancorp (NASDAQ:FSBCGet Rating) and SB Financial Group (NASDAQ:SBFGGet Rating) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Profitability

This table compares Five Star Bancorp and SB Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Five Star Bancorp 38.89% 18.37% 1.57%
SB Financial Group 19.64% 8.15% 0.83%

Volatility and Risk

Five Star Bancorp has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500. Comparatively, SB Financial Group has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Valuation & Earnings

This table compares Five Star Bancorp and SB Financial Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Five Star Bancorp $88.86 million 5.48 $42.44 million $2.50 11.29
SB Financial Group $72.60 million 1.62 $18.28 million $1.76 9.53

Five Star Bancorp has higher revenue and earnings than SB Financial Group. SB Financial Group 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.

Dividends

Five Star Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 2.1%. SB Financial Group pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. Five Star Bancorp pays out 24.0% of its earnings in the form of a dividend. SB Financial Group pays out 27.3% 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. SB Financial Group has increased its dividend for 9 consecutive years. SB Financial Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Five Star Bancorp and SB Financial Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Five Star Bancorp 0 0 1 0 3.00
SB Financial Group 0 0 0 0 N/A

Five Star Bancorp presently has a consensus target price of $32.00, suggesting a potential upside of 13.39%. Given Five Star Bancorp’s higher probable upside, analysts clearly believe Five Star Bancorp is more favorable than SB Financial Group.

Insider & Institutional Ownership

41.3% of Five Star Bancorp shares are held by institutional investors. Comparatively, 50.0% of SB Financial Group shares are held by institutional investors. 27.7% of Five Star Bancorp shares are held by insiders. Comparatively, 4.2% of SB Financial Group shares are held by 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

Five Star Bancorp beats SB Financial Group on 12 of the 16 factors compared between the two stocks.

About Five Star Bancorp

(Get Rating)

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. The company accepts various deposits, such as money market, noninterest-bearing and interest checking accounts, savings accounts, and time deposits. Its loan products include commercial and residential real estate loans; commercial loans; commercial land loans; farmland loans; commercial and residential construction loans; and consumer and other loans. The company also offers debit cards; and remote deposit capture, online and mobile banking, and direct deposit services. It operates through seven branch offices and two loan production offices in Northern California. Five Star Bancorp was founded in 1999 and is headquartered in Rancho Cordova, California.

About SB Financial Group

(Get Rating)

SB Financial Group, Inc. provides a range of commercial banking and wealth management services to individual and corporate customers primarily in Ohio, Indiana, and Michigan. It offers checking, savings, money market accounts, as well as time certificates of deposit; and commercial, consumer, agricultural, and residential mortgage loans. The company also provides automatic teller machine, personal and corporate trust, commercial leasing, bank credit card, safe deposit box rental, internet banking, private client group, and other personalized banking products and services; and various trust and financial services comprising asset management services for individuals and corporate employee benefit plans, as well as brokerage services. In addition, it sells insurance products to retail and commercial customers. As of December 31, 2021, the company operated a network of 22 banking centers in the Ohio counties of Allen, Defiance, Franklin, Fulton, Hancock, Lucas, Paulding, Wood, and Williams; and one banking center in Allen County, Indiana. It also operated five loan production offices in Franklin and Lucas Counties, Ohio; Hamilton and Steuben Counties, Indiana; and Monroe County, Michigan. The company was formerly known as Rurban Financial Corp. and changed its name to SB Financial Group, Inc. in April 2013. SB Financial Group, Inc. was incorporated in 1983 and is headquartered in Defiance, Ohio.

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