Head-To-Head Contrast: City (NASDAQ:CHCO) and Fifth District Bancorp (NASDAQ:FDSB)

City (NASDAQ:CHCO) and Fifth District Bancorp (NASDAQ:FDSB) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Institutional and Insider Ownership

72.4% of City shares are owned by institutional investors. 1.9% of City shares are owned by company insiders. Comparatively, 4.5% of Fifth District Bancorp shares are owned 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.

Profitability

This table compares City and Fifth District Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
City	32.33%	16.66%	1.93%
Fifth District Bancorp	14.27%	2.88%	0.69%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for City and Fifth District Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
City	0	5	1	0	2.17
Fifth District Bancorp	1	0	0	0	1.00

City presently has a consensus target price of $133.25, indicating a potential upside of 9.15%. Given City’s stronger consensus rating and higher possible upside, equities analysts plainly believe City is more favorable than Fifth District Bancorp.

Risk and Volatility

City has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Fifth District Bancorp has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.

Earnings and Valuation

This table compares City and Fifth District Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
City	$379.76 million	4.63	$117.10 million	$8.70	14.03
Fifth District Bancorp	$19.29 million	4.29	-$1.08 million	$0.73	20.55

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

Summary

City beats Fifth District Bancorp on 11 of the 13 factors compared between the two stocks.

About City

City Holding Company operates as a holding company for City National Bank of West Virginia that provides various banking, trust, and investment management, and other financial solutions in the United States. The company offers checking, savings, and money market accounts, as well as certificates of deposit and individual retirement accounts. It also provides commercial and industrial loans that consist of loans to corporate and other legal entity borrowers primarily in small to mid-size industrial and commercial companies; commercial real estate loans comprising commercial mortgages, which are secured by nonresidential and multi-family residential properties; residential real estate loans to consumers for the purchase or refinance of residence; first-priority home equity loans; home equity lines of credit; amortized home equity loans; consumer loans that are secured and unsecured by automobiles, boats, recreational vehicles, certificates of deposit, and other personal property; and demand deposit account overdrafts, as well as owner-occupied real estate and construction, land development, and lines of credit. In addition, the company offers mortgage banking services, including fixed and adjustable-rate mortgages, construction financing, land loans, production of conventional and government-insured mortgages, secondary marketing, and mortgage servicing. Further, it provides deposit services for commercial customers comprising treasury management, lockbox, and other cash management services; merchant credit card services; wealth management, trust, investment, and custodial services for commercial and individual customers; and corporate trust and institutional custody, financial and estate planning, and retirement plan services, as well as automated-teller-machine, interactive-teller-machine, mobile banking, interactive voice response systems, and credit and debit card services. City Holding Company was founded in 1957 and is headquartered in Charleston, West Virginia.

About Fifth District Bancorp

Fifth District Bancorp, Inc. is the holding company for Fifth District Savings Bank which provide all banking services. Fifth District Bancorp, Inc. is based in NEW ORLEANS.