Comparing Solera National Bancorp (OTCMKTS:SLRK) & First Bancshares (NASDAQ:FBMS)

Solera National Bancorp (OTCMKTS:SLRKGet Free Report) and First Bancshares (NASDAQ:FBMSGet Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Risk & Volatility

Solera National Bancorp has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, First Bancshares has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Insider & Institutional Ownership

70.0% of First Bancshares shares are held by institutional investors. 17.4% of Solera National Bancorp shares are held by company insiders. Comparatively, 3.5% of First Bancshares shares are held by company 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Solera National Bancorp and First Bancshares, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Solera National Bancorp 0 0 0 0 N/A
First Bancshares 0 2 2 0 2.50

First Bancshares has a consensus target price of $31.00, indicating a potential upside of 26.17%. Given First Bancshares’ higher probable upside, analysts plainly believe First Bancshares is more favorable than Solera National Bancorp.

Profitability

This table compares Solera National Bancorp and First Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Solera National Bancorp 21.95% N/A N/A
First Bancshares 20.00% 9.73% 1.14%

Earnings & Valuation

This table compares Solera National Bancorp and First Bancshares’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Solera National Bancorp $65.19 million 0.61 $16.66 million $3.47 2.68
First Bancshares $387.64 million 1.98 $75.46 million $2.52 9.75

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

Summary

First Bancshares beats Solera National Bancorp on 10 of the 13 factors compared between the two stocks.

About Solera National Bancorp

(Get Free Report)

Solera National Bancorp, Inc. operates as the bank holding company for Solera National Bank that provides commercial and consumer banking services in the United States. The company offers checking and savings accounts, money market accounts, time and demand deposits, and individual retirement accounts (IRA), as well as certificates of deposit; and real estate secured loans, construction loans, small business administration loans, business lines of credit, and equipment financing. It also provides online banking, account analysis, combined account analysis, commercial sweep, remote deposit, ACH origination, payroll direct deposit, merchant, business debit card, and cash management services. The company was incorporated in 2006 and is based in Lakewood, Colorado.

About First Bancshares

(Get Free Report)

The First Bancshares, Inc. operates as the bank holding company for The First Bank that provides general commercial and retail banking services. The company operates through three segments: Commercial/Retail Bank, Mortgage Banking Division, and Holding Company. It offers deposit services, including checking, NOW, and savings accounts; other time deposits, such as daily money market accounts and longer-term certificates of deposit; and individual retirement and health savings accounts. The company also provides commercial loans comprising secured and unsecured loans for working capital, business expansion, and purchase of equipment and machinery; consumer loans consisting of equity lines of credit, as well as secured and unsecured loans for financing automobiles, home improvements, education, and personal investments; and real estate construction and acquisition loans. In addition, it originates loans to purchase existing residential homes, construct new homes, and to refinance existing mortgages; and provides financial and wealth management services. Further, the company offers online internet banking services, automated teller machines, voice response telephone inquiry services, commercial sweep accounts, cash management services, safe deposit boxes, merchant services, mobile deposit, direct deposit of payroll and social security checks, automatic drafts for various accounts, and credit card services. It serves small to medium-sized businesses, professional concerns, individuals, associations, organizations, and governmental authorities. The company operates full-service banking and financial service offices, motor bank facility, and loan production offices in Mississippi, Alabama, Florida, Georgia, and Louisiana. The First Bancshares, Inc. was incorporated in 1995 and is headquartered in Hattiesburg, Mississippi.

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