Head to Head Review: Investar (NASDAQ:ISTR) versus First NBC Bank (OTCMKTS:FNBCQ)

First NBC Bank (OTCMKTS:FNBCQ) and Investar (NASDAQ:ISTR) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Profitability

This table compares First NBC Bank and Investar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First NBC Bank	N/A	N/A	N/A
Investar	14.92%	9.31%	0.87%

Analyst Ratings

This is a summary of current ratings and recommmendations for First NBC Bank and Investar, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First NBC Bank	0	0	0	0	0.00
Investar	0	0	2	1	3.33

Investar has a consensus target price of $29.00, suggesting a potential upside of 5.15%. Given Investar’s stronger consensus rating and higher possible upside, analysts clearly believe Investar is more favorable than First NBC Bank.

Earnings and Valuation

This table compares First NBC Bank and Investar”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First NBC Bank	N/A	N/A	N/A	N/A	N/A
Investar	$90.24 million	3.00	$22.90 million	$2.14	12.89

Investar has higher revenue and earnings than First NBC Bank.

Institutional and Insider Ownership

50.2% of Investar shares are held by institutional investors. 8.4% of First NBC Bank shares are held by company insiders. Comparatively, 8.8% of Investar shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Investar beats First NBC Bank on 10 of the 10 factors compared between the two stocks.

About First NBC Bank

First NBC Bank Holding Company operates as the bank holding company for First NBC Bank that provides a range of financial services for businesses, institutions, and individuals. The company's deposit products include savings deposits, money market accounts, negotiable order of withdrawal accounts, and certificates of deposit. Its loan portfolio comprises construction, commercial and consumer real estate, commercial and industrial, and consumer loans. The company also offers trust services, credit cards, and wire transfers. As of August 15, 2016, it operated 39 full service banking offices in New Orleans metropolitan area, Mississippi Gulf Coast, and the Florida panhandle. First NBC Bank Holding Company was founded in 2006 and is headquartered in New Orleans, Louisiana. On May 11, 2017, First NBC Bank Holding Company filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Eastern District of Louisiana. First NBC Bank Holding Company operates as a subsidiary of First NMTC 2, LLC.

About Investar

Investar Holding Corporation operates as the bank holding company for Investar Bank that provides a range of commercial banking products to individuals, professionals, and small to medium-sized businesses in south Louisiana, southeast Texas, and Alabama in the United States. The company offers various deposit products and services, such as savings, checking, money market, and individual retirement accounts, as well as various certificates of deposit; debit and credit cards; internet, mobile, and video banking services; and reciprocal deposit products. It also provides commercial real estate loans; commercial and industrial loans, including working capital lines of credit and equipment loans; loans for the construction of commercial projects, and single family residential and multifamily properties; one-to-four family residential real estate loans, such as second mortgage loans; and consumer loans, such as secured and unsecured installment and term loans, home equity loans and lines of credit, and auto loans, as well as loans for personal, family, and household purposes. In addition, the company offers treasury management products, including remote deposit capture, lockbox payment processing, virtual vault, positive pay, ACH origination, wire transfer, investment sweep accounts, and business internet banking services. Further, it provides various other banking services, such as cashiers' checks, direct deposit of payroll and social security checks, night depository, bank-by-mail, automated teller machines, electronic statements, interactive teller machines, online account opening, and mobile wallet payment services. Investar Holding Corporation was founded in 2006 and is headquartered in Baton Rouge, Louisiana.