Analyzing Colony Bankcorp (NYSE:CBAN) & First Us Bancsh (NASDAQ:FUSB)

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

Dividends

First Us Bancsh pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. Colony Bankcorp pays an annual dividend of $0.46 per share and has a dividend yield of 2.9%. First Us Bancsh pays out 30.1% of its earnings in the form of a dividend. Colony Bankcorp pays out 28.9% 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. First Us Bancsh has raised its dividend for 3 consecutive years. Colony Bankcorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

First Us Bancsh has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, Colony Bankcorp has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for First Us Bancsh and Colony Bankcorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Us Bancsh	0	1	0	0	2.00
Colony Bankcorp	0	0	1	0	3.00

Profitability

This table compares First Us Bancsh and Colony Bankcorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Us Bancsh	8.98%	5.54%	0.50%
Colony Bankcorp	15.07%	10.67%	0.98%

Institutional & Insider Ownership

18.7% of First Us Bancsh shares are held by institutional investors. Comparatively, 50.4% of Colony Bankcorp shares are held by institutional investors. 11.2% of First Us Bancsh shares are held by company insiders. Comparatively, 6.6% of Colony Bankcorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares First Us Bancsh and Colony Bankcorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Us Bancsh	$40.35 million	1.91	$8.17 million	$0.93	14.39
Colony Bankcorp	$126.05 million	2.22	$23.87 million	$1.59	10.10

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

Summary

Colony Bankcorp beats First Us Bancsh on 13 of the 16 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 Colony Bankcorp

Colony Bankcorp, Inc. operates as the bank holding company for Colony Bank that provides various banking products and services to commercial and consumer customers. The company offers various deposit products, including demand, savings, and time deposits. It also provides loans to small and medium-sized businesses; residential and commercial construction, and land development loans; commercial real estate loans; commercial loans; agri-business and production loans; residential mortgage loans; home equity loans; and consumer loans. In addition, the company offers internet banking services, electronic bill payment services, safe deposit box rentals, telephone banking, credit and debit card services, and remote depository products, as well as access to a network of ATMs. As of January 20, 2022, it operated 39 locations throughout Georgia. The company was founded in 1975 and is headquartered in Fitzgerald, Georgia.