RBB Bancorp (NASDAQ:RBB – Get Free Report) and Five Star Bancorp (NASDAQ:FSBC – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Risk and Volatility
RBB Bancorp has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Five Star Bancorp has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and price targets for RBB Bancorp and Five Star Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RBB Bancorp | 0 | 5 | 0 | 0 | 2.00 |
| Five Star Bancorp | 0 | 2 | 5 | 0 | 2.71 |
Profitability
This table compares RBB Bancorp and Five Star Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RBB Bancorp | 11.12% | 5.10% | 0.64% |
| Five Star Bancorp | 23.18% | 13.88% | 1.32% |
Valuation & Earnings
This table compares RBB Bancorp and Five Star Bancorp”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RBB Bancorp | $232.00 million | 1.54 | $26.67 million | $1.49 | 14.06 |
| Five Star Bancorp | $213.40 million | 3.65 | $45.67 million | $2.70 | 13.50 |
Five Star Bancorp has lower revenue, but higher earnings than RBB Bancorp. Five Star Bancorp is trading at a lower price-to-earnings ratio than RBB Bancorp, indicating that it is currently the more affordable of the two stocks.
Dividends
RBB Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 3.1%. Five Star Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.2%. RBB Bancorp pays out 43.0% of its earnings in the form of a dividend. Five Star Bancorp pays out 29.6% 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.
Insider and Institutional Ownership
40.1% of RBB Bancorp shares are held by institutional investors. Comparatively, 46.9% of Five Star Bancorp shares are held by institutional investors. 4.6% of RBB Bancorp shares are held by insiders. Comparatively, 25.6% of Five Star Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Five Star Bancorp beats RBB Bancorp on 12 of the 16 factors compared between the two stocks.
About RBB Bancorp
RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American, Korean-American, and other Asian-American communities. Its deposit products include checking, savings, and money market accounts, as well as certificates of deposit. The company also offers commercial and industrial lines of credit, term loans, mortgage warehouse lines, and international trade discounts; commercial real estate loans; residential, commercial, and land acquisition and development construction loans; small business administration loans; and single-family residential mortgage loans. In addition, it provides international letters of credit, SWIFT, export advisory, trade finance discount, and foreign exchange services; and remote deposit, e-banking, and mobile banking services. The company serves individuals, businesses, municipalities, and other entities. It operates branches in the Western region with branches in Los Angeles County, California; Orange County, California; Ventura County, California; Clark County, Nevada; Honolulu, Hawaii, as well as in Eastern region with branches in Manhattan, Brooklyn and Queens, New York; Chicago, Illinois; and Edison, New Jersey. RBB Bancorp was founded in 2008 and is headquartered in Los Angeles, California.
About Five Star Bancorp
Five Star Bancorp operates as the bank holding company for Five Star Bank that provides a range of banking products and services to small and medium-sized businesses, professionals, and individuals in Northern California. It accepts various deposits, such as money market accounts, noninterest-bearing and interest checking accounts, savings accounts, term certificate accounts, and time deposits. The company also offers loan products, including commercial and residential real estate loans; commercial loans; commercial land loans; farmland loans; commercial and residential construction loans; and consumer and other loans, as well as operating lines of credit. In addition, it provides debit cards; and remote deposit capture, online and mobile banking, and direct deposit services. Five Star Bancorp was founded in 1999 and is headquartered in Rancho Cordova, California.
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