Head-To-Head Review: John Marshall Bancorp (NASDAQ:JMSB) versus USCB Financial (NASDAQ:USCB)

John Marshall Bancorp (NASDAQ:JMSB) and USCB Financial (NASDAQ:USCB) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Analyst Recommendations

This is a breakdown of current recommendations for John Marshall Bancorp and USCB Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
John Marshall Bancorp	0	0	0	0	0.00
USCB Financial	0	2	2	0	2.50

USCB Financial has a consensus price target of $17.50, suggesting a potential upside of 2.58%. Given USCB Financial’s stronger consensus rating and higher probable upside, analysts plainly believe USCB Financial is more favorable than John Marshall Bancorp.

Valuation and Earnings

This table compares John Marshall Bancorp and USCB Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
John Marshall Bancorp	$53.32 million	3.87	$17.12 million	$1.20	12.03
USCB Financial	$82.68 million	4.14	$24.67 million	$1.23	13.87

USCB Financial has higher revenue and earnings than John Marshall Bancorp. John Marshall Bancorp is trading at a lower price-to-earnings ratio than USCB Financial, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

John Marshall Bancorp has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500. Comparatively, USCB Financial has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.

Profitability

This table compares John Marshall Bancorp and USCB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
John Marshall Bancorp	15.23%	7.20%	0.76%
USCB Financial	17.14%	12.14%	0.99%

Institutional & Insider Ownership

39.1% of John Marshall Bancorp shares are held by institutional investors. Comparatively, 61.3% of USCB Financial shares are held by institutional investors. 12.7% of John Marshall Bancorp shares are held by insiders. Comparatively, 48.5% of USCB Financial shares are held by 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.

Dividends

John Marshall Bancorp pays an annual dividend of $0.25 per share and has a dividend yield of 1.7%. USCB Financial pays an annual dividend of $0.40 per share and has a dividend yield of 2.3%. John Marshall Bancorp pays out 20.8% of its earnings in the form of a dividend. USCB Financial pays out 32.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

USCB Financial beats John Marshall Bancorp on 14 of the 16 factors compared between the two stocks.

About John Marshall Bancorp

John Marshall Bancorp, Inc. operates as the bank holding company for John Marshall Bank that provides banking products and financial services. The company accepts checking, demand, NOW, savings, and money market accounts, as well as certificates of deposit. It offers residential and commercial construction and development loans, commercial term, mortgage, commercial real estate, industrial loans, and other commercial lines of credit; debit and credit cards; and treasury and cash management, investment, business and personal insurance, remote deposit capture, deposit sweep and online and mobile banking services. The company serves small to medium-sized businesses, their owners and employees, professional corporations, non-profits, and individuals. The company was founded in 2005 and is headquartered in Reston, Virginia.

About USCB Financial

USCB Financial Holdings, Inc. operates as the bank holding company for U.S. Century Bank that engages in the provision of various personal and business banking products and services in the United States. It accepts various deposit products, including commercial and consumer checking, money market deposit, savings, and time deposit accounts, as well as certificates of deposit. It also offers loan products, such as small business administration loans, yacht financing, residential and commercial real estate loans; commercial and industrial loans; foreign bank loans; and secured and unsecured consumer loans comprising personal loans, overdrafts, and deposit account collateralized loans. The company also offers lockbox, treasury, commercial payments, cash management, and online banking services, as well as provides title insurance policies for real estate transactions. USCB Financial Holdings, Inc. was founded in 2002 and is headquartered in Miami, Florida.