Analyzing First Business Financial Services (NASDAQ:FBIZ) & Equitable Financial (OTCMKTS:EQFN)

First Business Financial Services (NASDAQ:FBIZ) and Equitable Financial (OTCMKTS:EQFN) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Profitability

This table compares First Business Financial Services and Equitable Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Business Financial Services	17.59%	14.22%	1.17%
Equitable Financial	9.82%	10.12%	0.97%

Analyst Recommendations

This is a breakdown of current ratings and target prices for First Business Financial Services and Equitable Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Business Financial Services	0	0	3	0	3.00
Equitable Financial	0	0	0	0	0.00

First Business Financial Services currently has a consensus target price of $59.67, indicating a potential upside of 13.24%. Given First Business Financial Services’ stronger consensus rating and higher possible upside, equities analysts clearly believe First Business Financial Services is more favorable than Equitable Financial.

Insider and Institutional Ownership

60.1% of First Business Financial Services shares are owned by institutional investors. Comparatively, 7.2% of Equitable Financial shares are owned by institutional investors. 5.1% of First Business Financial Services shares are owned by insiders. Comparatively, 11.3% of Equitable Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

First Business Financial Services has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Equitable Financial has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500.

Valuation & Earnings

This table compares First Business Financial Services and Equitable Financial”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Business Financial Services	$262.38 million	1.67	$44.24 million	$5.62	9.38
Equitable Financial	$31.33 million	1.18	$2.71 million	N/A	N/A

First Business Financial Services has higher revenue and earnings than Equitable Financial.

Summary

First Business Financial Services beats Equitable Financial on 11 of the 13 factors compared between the two stocks.

About First Business Financial Services

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 in Wisconsin, Kansas, and Missouri. The company offers real estate lending, commercial and industrial lending, asset-based lending, accounts receivable financing, equipment financing loans and leases, floorplan financing, vendor financing, small business administration lending and servicing, treasury management solutions, and company retirement services. It also provides private wealth management for individuals, including creating and executing asset allocation strategies, trust and estate administration, financial planning, investment management, and access to brokerage and custody-only services. In addition, the company offers bank consulting consisting of investment portfolio administrative and asset liability management services, and commercial deposit accounts. The company was founded in 1909 and is headquartered in Madison, Wisconsin.

About Equitable Financial

Equitable Financial Corp. operates as the holding company for Equitable Bank that provides various banking products and services in Nebraska, the United States. The company offers checking and savings accounts; recorder checks; online and mobile banking; remote deposit capture; voice banking; credit card processing; debit and gift cards; and safe deposit boxes. It also provides home, home equity, auto, personal, real estate and construction, operating lines of credit, small business administration, and agricultural loans, as well as equipment financing. In addition, the company offers foreign currency and exchanges; financial planning; wealth management; investment advisory; and retirement services. It operates through branches located in Grand Island, North Platte, and Omaha. The company was founded in 1882 and is headquartered in Grand Island, Nebraska.