Comparing RBB Bancorp (NASDAQ:RBB) and Five Star Bancorp (NASDAQ:FSBC)

Five Star Bancorp (NASDAQ:FSBC) and RBB Bancorp (NASDAQ:RBB) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Institutional & Insider Ownership

46.9% of Five Star Bancorp shares are owned by institutional investors. Comparatively, 40.1% of RBB Bancorp shares are owned by institutional investors. 21.7% of Five Star Bancorp shares are owned by company insiders. Comparatively, 4.6% of RBB Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Five Star Bancorp has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, RBB Bancorp has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Five Star Bancorp and RBB Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Five Star Bancorp	0	2	5	0	2.71
RBB Bancorp	0	5	0	0	2.00

Five Star Bancorp presently has a consensus target price of $39.40, indicating a potential upside of 6.54%. RBB Bancorp has a consensus target price of $22.33, indicating a potential upside of 6.45%. Given Five Star Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Five Star Bancorp is more favorable than RBB Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Five Star Bancorp	23.18%	13.88%	1.32%
RBB Bancorp	11.12%	5.10%	0.64%

Earnings and Valuation

This table compares Five Star Bancorp and RBB Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Five Star Bancorp	$148.75 million	5.31	$45.67 million	$2.70	13.70
RBB Bancorp	$125.55 million	2.85	$26.67 million	$1.49	14.08

Five Star Bancorp has higher revenue and 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

Five Star Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.2%. RBB Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 3.1%. Five Star Bancorp pays out 29.6% of its earnings in the form of a dividend. RBB Bancorp pays out 43.0% 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.

Summary

Five Star Bancorp beats RBB Bancorp on 13 of the 16 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 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.