Truxton (OTCMKTS:TRUX) vs. First Us Bancsh (NASDAQ:FUSB) Critical Review

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

Volatility & 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, Truxton has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.

Earnings & Valuation

This table compares First Us Bancsh and Truxton”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Us Bancsh	$40.35 million	1.93	$8.17 million	$0.93	14.53
Truxton	$78.37 million	3.01	$18.41 million	$7.28	11.26

Truxton has higher revenue and earnings than First Us Bancsh. Truxton 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.

Profitability

This table compares First Us Bancsh and Truxton’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%
Truxton	23.97%	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for First Us Bancsh and Truxton, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Us Bancsh	0	1	0	0	2.00
Truxton	0	0	0	0	0.00

Dividends

First Us Bancsh pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. Truxton pays an annual dividend of $2.00 per share and has a dividend yield of 2.4%. First Us Bancsh pays out 30.1% of its earnings in the form of a dividend. Truxton pays out 27.5% 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. First Us Bancsh has raised its dividend for 3 consecutive years. Truxton is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

18.7% of First Us Bancsh shares are held by institutional investors. Comparatively, 0.3% of Truxton shares are held by institutional investors. 11.2% of First Us Bancsh shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Truxton beats First Us Bancsh on 8 of the 15 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 Truxton

Truxton Corporation, through its subsidiaries, provides various banking, investment management, and trust administration services to individuals, businesses, and charitable institutions in the United States. The company offers deposit products, including demand, money market accounts, and certificates of deposit. It also provides lending products, such as residential and commercial real estate mortgages, commercial loans, construction and land development loans, commercial and industrial loans, operating lines of credit, and loans to individual. In addition, the company offers strategic and capital advisory services, business banking, and treasury management services; and insurance products. The company was formerly known as NBT Holdings Inc. and changed its name to Truxton Corporation in May 2013. Truxton Corporation was founded in 2004 and is based in Nashville, Tennessee.