Critical Contrast: FirstSun Capital Bancorp (NASDAQ:FSUN) versus First Business Financial Services (NASDAQ:FBIZ)

FirstSun Capital Bancorp (NASDAQ:FSUN) and First Business Financial Services (NASDAQ:FBIZ) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Earnings and Valuation

This table compares FirstSun Capital Bancorp and First Business Financial Services”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FirstSun Capital Bancorp	$549.33 million	1.95	$75.63 million	$3.16	12.14
First Business Financial Services	$262.38 million	1.76	$44.24 million	$6.08	9.12

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

Profitability

This table compares FirstSun Capital Bancorp and First Business Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FirstSun Capital Bancorp	15.94%	9.00%	1.17%
First Business Financial Services	18.55%	14.89%	1.24%

Volatility & Risk

FirstSun Capital Bancorp has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, First Business Financial Services has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Insider & Institutional Ownership

60.1% of First Business Financial Services shares are held by institutional investors. 12.5% of FirstSun Capital Bancorp shares are held by company insiders. Comparatively, 5.1% of First Business Financial Services shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations for FirstSun Capital Bancorp and First Business Financial Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FirstSun Capital Bancorp	0	1	3	0	2.75
First Business Financial Services	0	0	4	0	3.00

FirstSun Capital Bancorp presently has a consensus target price of $43.33, suggesting a potential upside of 12.96%. First Business Financial Services has a consensus target price of $60.67, suggesting a potential upside of 9.43%. Given FirstSun Capital Bancorp’s higher probable upside, equities research analysts clearly believe FirstSun Capital Bancorp is more favorable than First Business Financial Services.

About FirstSun Capital Bancorp

FirstSun Capital Bancorp engages in the provision of commercial banking services. It operates through the following segments: Banking, Mortgage Operations, and Corporate. The Banking segment consists of loans and provides deposits and fee-based services to consumer, business, and mortgage lending customers. The Mortgage Operations segment originates, sells, services, and manages market risk from changes in interest rates on one-to-four family residential mortgage loans to sell and hold. The company is founded on November 9, 1981 headquartered in Denver, CO.

About First Business Financial Services

First Business Financial Services, Inc. operates as the bank holding company for First Business Bank that provides commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals in Wisconsin, Kansas, and Missouri. The company offers real estate lending, commercial and industrial lending, asset-based lending, accounts receivable financing, equipment financing loans and leases, floorplan financing, vendor financing, small business administration lending and servicing, treasury management solutions, and company retirement services. It also provides private wealth management for individuals, including creating and executing asset allocation strategies, trust and estate administration, financial planning, investment management, and access to brokerage and custody-only services. In addition, the company offers bank consulting consisting of investment portfolio administrative and asset liability management services, and commercial deposit accounts. The company was founded in 1909 and is headquartered in Madison, Wisconsin.