1st Capital Bank (OTCMKTS:FISB) and U.S. Bancorp (NYSE:USB) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.

Earnings & Valuation

This table compares 1st Capital Bank and U.S. Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
1st Capital Bank $20.92 million 3.94 $2.85 million N/A N/A
U.S. Bancorp $25.78 billion 3.42 $7.10 billion $4.10 13.62

U.S. Bancorp has higher revenue and earnings than 1st Capital Bank.

Volatility & Risk

1st Capital Bank has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, U.S. Bancorp has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Dividends

U.S. Bancorp pays an annual dividend of $1.48 per share and has a dividend yield of 2.6%. 1st Capital Bank does not pay a dividend. U.S. Bancorp pays out 36.1% of its earnings in the form of a dividend. U.S. Bancorp has increased its dividend for 8 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and price targets for 1st Capital Bank and U.S. Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
1st Capital Bank 0 0 0 0 N/A
U.S. Bancorp 1 12 3 0 2.13

U.S. Bancorp has a consensus target price of $56.92, indicating a potential upside of 1.90%. Given U.S. Bancorp’s higher possible upside, analysts plainly believe U.S. Bancorp is more favorable than 1st Capital Bank.

Institutional and Insider Ownership

5.3% of 1st Capital Bank shares are held by institutional investors. Comparatively, 75.7% of U.S. Bancorp shares are held by institutional investors. 0.2% of U.S. Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares 1st Capital Bank and U.S. Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
1st Capital Bank N/A N/A N/A
U.S. Bancorp 26.70% 15.45% 1.51%

Summary

U.S. Bancorp beats 1st Capital Bank on 12 of the 14 factors compared between the two stocks.

About 1st Capital Bank

1st Capital Bank provides various banking products and services to businesses, professionals, real estate investors, family commercial entities, and individuals in the central coast region of California. Its deposit products include personal and business checking, savings, money market, and certificates of deposit accounts, as well as individual retirement accounts and health savings accounts. The company also offers business loans and lines of credit, such as long term loans for fixed-asset purchases and permanent working capital, asset-based lines of credit to cover accounts receivables and inventory, short term lines of credit to support short-term seasonal working capital needs or inventory purchases, equipment financing, and acquisition financing; and commercial real estate loans comprising term loans for the purchase or refinance of commercial and multi-family residential properties; and personal loans for business owners. In addition, it provides agriculture and wine industry lending products, including long or short term loans for crops, orchards, winery, and vineyard development; real estate purchases or debt refinancing; machinery and equipment purchase; and building improvements, as well as lines of credit for seasonal needs. Further, the company offers small business administration and government guaranteed lending solutions; debit cards; cash management services that include ACH origination, online wire transfer, check reconciliation, merchant card, and remote deposit capture services; and remote check scanning, remote branch deposit, online banking, telephone banking, courier, electronic bill payment, mobile banking, and remote wire request services, as well as invests in securities. It operates through full service branch offices in Monterey, Salinas, King City, and San Luis Obispo, California. The company was incorporated in 2006 and is based in Salinas, California.

About U.S. Bancorp

U.S. Bancorp, a financial services holding company, provides various financial services in the United States. It operates in five segments: Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment Services, Payment Services, and Treasury and Corporate Support. The company offers depository services, including checking accounts, savings accounts, and time certificate contracts; and lending services, such as traditional credit products, as well as credit card services, lease financing and import/export trade, asset-backed lending, agricultural finance, and other products. It also provides ancillary services comprising capital markets, treasury management, and receivable lock-box collection services to corporate customers; and a range of asset management and fiduciary services for individuals, estates, foundations, business corporations, and charitable organizations. In addition, the company offers investment and insurance products to its customers principally within its markets, as well as fund administration services to a range of mutual and other funds. Further, it provides corporate and purchasing card, and corporate trust services; and merchant processing services, as well as cash and investment management, ATM processing, mortgage banking, and brokerage and leasing services. The company offers its products and services through operating a network of 3,018 banking offices principally operating in the Midwest and West regions of the United States, as well as through online services and over mobile devices. It also operates a network of 4,681 ATMs. The company was founded in 1863 and is headquartered in Minneapolis, Minnesota.

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