Financial Review: Affinity Bancshares (NASDAQ:AFBI) vs. First Us Bancsh (NASDAQ:FUSB)

First Us Bancsh (NASDAQ:FUSB) and Affinity Bancshares (NASDAQ:AFBI) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.

Insider & Institutional Ownership

18.7% of First Us Bancsh shares are held by institutional investors. Comparatively, 39.3% of Affinity Bancshares shares are held by institutional investors. 11.2% of First Us Bancsh shares are held by company insiders. Comparatively, 12.4% of Affinity Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares First Us Bancsh and Affinity Bancshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Us Bancsh	$61.84 million	1.27	$8.17 million	$0.93	14.63
Affinity Bancshares	$49.99 million	2.58	$5.44 million	$1.15	18.17

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for First Us Bancsh and Affinity Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Us Bancsh	0	1	0	0	2.00
Affinity Bancshares	0	1	0	0	2.00

Volatility & Risk

First Us Bancsh has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Affinity Bancshares has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500.

Profitability

This table compares First Us Bancsh and Affinity Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Us Bancsh	8.98%	5.49%	0.49%
Affinity Bancshares	14.55%	6.61%	0.91%

Summary

Affinity Bancshares beats First Us Bancsh on 8 of the 11 factors compared between the two stocks.

About First Us Bancsh

First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services. The company offers non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include commercial construction, land, and land development loans, including residential housing projects, commercial and industrial development, and for purchase and improvement of raw land for agricultural production; mortgage loans on one-to-four family and multi-family residential properties; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, and other commercial properties; commercial and industrial loans and leases; and secured and unsecured personal loans, including automobile loans, loans for household and personal purposes, and other direct consumer installment loans. The company also provides loans secured by collateral in form of personal property items. In addition, it provides letters of credit; and safe deposit box and remote deposit capture services. The company serves small-and medium-sized businesses, property managers, business executives, professionals, and other individuals. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is headquartered in Birmingham, Alabama.

About Affinity Bancshares

Affinity Bancshares, Inc. operates as the holding company for Affinity Bank that provides various banking products and services in Georgia. The company offers various deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts, as well as Kasasa (rewards) deposit program for checking accounts with interest rates or cash-back rewards. It offers commercial and residential real estate, commercial and industrial, residential mortgage, construction and land, and consumer loans, as well as balloon and adjustable-rate loans. In addition, the company invests in U.S. treasury securities; securities issued by the U.S. government and its agencies, or government sponsored enterprises, including mortgage-backed securities and collateralized mortgage obligations; corporate and municipal bonds; certificates of deposit in other financial institutions; and federal and money market funds. Further, it operates a virtual bank under the name FitnessBank, which accepts deposits and provides higher interest rates based on customers meeting certain fitness goals. Affinity Bancshares, Inc. was founded in 1928 and is headquartered in Covington, Georgia.