FNB Bancorp (NASDAQ:FNBG) and Investar (NASDAQ:ISTR) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.

Valuation & Earnings

This table compares FNB Bancorp and Investar’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FNB Bancorp N/A N/A N/A N/A N/A
Investar $57.16 million 4.03 $8.20 million $1.12 21.52

Investar has higher revenue and earnings than FNB Bancorp.

Dividends

FNB Bancorp pays an annual dividend of $0.52 per share. Investar pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Investar pays out 17.9% of its earnings in the form of a dividend. Investar has increased its dividend for 3 consecutive years. Investar is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

23.2% of FNB Bancorp shares are owned by institutional investors. Comparatively, 57.9% of Investar shares are owned by institutional investors. 17.5% of FNB Bancorp shares are owned by insiders. Comparatively, 9.1% of Investar shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for FNB Bancorp and Investar, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FNB Bancorp 0 0 0 0 N/A
Investar 0 0 3 0 3.00

Investar has a consensus price target of $30.00, suggesting a potential upside of 24.48%.

Profitability

This table compares FNB Bancorp and Investar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FNB Bancorp N/A N/A N/A
Investar 16.88% 8.45% 0.89%

Summary

Investar beats FNB Bancorp on 8 of the 10 factors compared between the two stocks.

FNB Bancorp Company Profile

FNB Bancorp operates as the bank holding company for First National Bank of Northern California that provides business and commercial banking services for individuals and small to mid-sized businesses primarily in the San Mateo, San Francisco, and Santa Clara counties. The company offers personal and business checking and savings accounts, including individual interest-bearing negotiable orders of withdrawal, money market accounts and/or accounts combining checking and savings accounts with automatic transfer capabilities, IRA accounts, time certificates of deposit, direct deposit services, and computer cash management with access through the Internet. It also provides commercial, construction, automobile, home improvement, residential and commercial real estate, small business administration, and consumer loans, as well as lines of credit; standby letters of credit; and accounts receivable, inventory, equipment, and leasehold improvement financing services. In addition, the company offers automated teller machine and other customary commercial banking services; and business financial products and specialized services, such as courier, appointment banking, and business Internet banking. Further, it sells cashier's checks. The company operates through 12 full service banking offices in the cities of Daly City, South San Francisco, Millbrae, Pacifica, Half Moon Bay, San Mateo, Redwood City, Pescadero, San Francisco, and Sunnyvale. FNB Bancorp was founded in 1963 and is based in South San Francisco, California.

Investar Company Profile

Investar Holding Corporation operates as the bank holding company for Investar Bank that provides a range of commercial banking products for individuals and small to medium-sized businesses in South Louisiana. The company offers various deposit products and services, such as savings, checking, money market, NOW, and individual retirement accounts, as well as various certificates of deposit; debit cards; and mobile banking services. It also provides commercial real estate loans; loans for the construction of commercial projects, and single family residential and multifamily properties; commercial and industrial loans, such as working capital lines of credit and equipment loans; consumer loans comprising secured and unsecured installment and term loans, second mortgages, home equity loans and lines of credit, and auto loans, as well as loans for personal, family, and household purposes; and one-to-four family residential real estate loans consisting of second and other second mortgage loans. In addition, the company offers cash management products, including remote deposit capture, electronic statements, positive pay, ACH origination and wire transfer, investment sweep accounts, and business Internet banking services. Further, it provides various other banking services, such as cashiers' checks, direct deposit of payroll and social security checks, night depository, bank-by-mail, automated teller machine, and merchant card services. The company operates through a network of 20 full service branches. Investar Holding Corporation was founded in 2006 and is headquartered in Baton Rouge, Louisiana.

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