Comparing First Financial Bancorp. (NASDAQ:FFBC) & Five Star Bancorp (NASDAQ:FSBC)

Five Star Bancorp (NASDAQ:FSBC) and First Financial Bancorp. (NASDAQ:FFBC) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.

Dividends

Five Star Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. First Financial Bancorp. pays an annual dividend of $1.04 per share and has a dividend yield of 3.2%. Five Star Bancorp pays out 29.6% of its earnings in the form of a dividend. First Financial Bancorp. pays out 36.7% 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 Financial Bancorp. has increased its dividend for 1 consecutive years. First Financial Bancorp. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Five Star Bancorp and First Financial Bancorp.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Five Star Bancorp	25.92%	15.92%	1.45%
First Financial Bancorp.	20.77%	11.13%	1.49%

Insider and Institutional Ownership

46.9% of Five Star Bancorp shares are held by institutional investors. Comparatively, 77.2% of First Financial Bancorp. shares are held by institutional investors. 21.8% of Five Star Bancorp shares are held by company insiders. Comparatively, 1.1% of First Financial Bancorp. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Five Star Bancorp has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, First Financial Bancorp. has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Earnings & Valuation

This table compares Five Star Bancorp and First Financial Bancorp.”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Five Star Bancorp	$255.47 million	4.21	$61.61 million	$3.38	12.97
First Financial Bancorp.	$1.26 billion	2.70	$255.60 million	$2.83	11.45

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Five Star Bancorp and First Financial Bancorp., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Five Star Bancorp	0	3	4	0	2.57
First Financial Bancorp.	0	3	5	0	2.62

Five Star Bancorp presently has a consensus price target of $45.20, suggesting a potential upside of 3.13%. First Financial Bancorp. has a consensus price target of $34.00, suggesting a potential upside of 4.94%. Given First Financial Bancorp.’s stronger consensus rating and higher possible upside, analysts clearly believe First Financial Bancorp. is more favorable than Five Star Bancorp.

Summary

First Financial Bancorp. beats Five Star Bancorp on 10 of the 17 factors compared between the two stocks.

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.

About First Financial Bancorp.

First Financial Bancorp. operates as the bank holding company for First Financial Bank that provides commercial banking and related services to individuals and businesses in Ohio, Indiana, Kentucky, and Illinois. The company offers checking, savings, and money-market accounts; and accepts various deposit products, such as interest-bearing and non-interest-bearing accounts, time deposits, and cash management services for commercial customers. It also provides real estate loans secured by residential property, such as one to four family residential housing units or commercial property comprising owner-occupied and/or investor income producing real estate consisting of apartments, shopping centers, and office buildings; commercial and industrial loans for various purposes, including inventory, receivables, and equipment, as well as equipment and leasehold improvement financing for franchisees; consumer loans comprising new and used vehicle loans, second mortgages on residential real estate, and unsecured loans; and home equity lines of credit. In addition, the company offers commercial financing to the insurance industry, registered investment advisors, certified public accountants, indirect auto finance companies, and restaurant franchisees. Further, it provides a range of trust and wealth management services; lease and equipment financing services; and currency payments, foreign exchange hedging, and other advisory products. First Financial Bancorp. was founded in 1863 and is headquartered in Cincinnati, Ohio.