Head to Head Analysis: Five Star Bancorp (NASDAQ:FSBC) and City Bank (OTCMKTS:CTBK)

City Bank (OTCMKTS:CTBK) and Five Star Bancorp (NASDAQ:FSBC) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares City Bank and Five Star Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
City Bank	N/A	N/A	N/A
Five Star Bancorp	23.18%	13.88%	1.32%

Earnings & Valuation

This table compares City Bank and Five Star Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
City Bank	N/A	N/A	N/A	N/A	N/A
Five Star Bancorp	$213.40 million	3.73	$45.67 million	$2.70	13.80

Five Star Bancorp has higher revenue and earnings than City Bank.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for City Bank and Five Star Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
City Bank	0	0	0	0	0.00
Five Star Bancorp	0	2	5	0	2.71

Five Star Bancorp has a consensus target price of $39.40, suggesting a potential upside of 5.74%. Given Five Star Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Five Star Bancorp is more favorable than City Bank.

Institutional and Insider Ownership

46.9% of Five Star Bancorp shares are held by institutional investors. 37.5% of City Bank shares are held by company insiders. Comparatively, 25.6% of Five Star Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Five Star Bancorp beats City Bank on 8 of the 9 factors compared between the two stocks.

About City Bank

As of April 17, 2010, City Bank was acquired by Whidbey Island Bank. City Bank offers commercial banking services. The company was incorporated in 1974 and is headquartered in Lynnwood, Washington.

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.