Five Star Bancorp (NASDAQ:FSBC) vs. First Northwest Bancorp (NASDAQ:FNWB) Head-To-Head Contrast

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

Analyst Ratings

This is a breakdown of current ratings for First Northwest Bancorp and Five Star Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Northwest Bancorp	1	2	1	0	2.00
Five Star Bancorp	0	2	5	0	2.71

First Northwest Bancorp presently has a consensus price target of $13.50, suggesting a potential upside of 30.31%. Five Star Bancorp has a consensus price target of $40.00, suggesting a potential downside of 3.33%. Given First Northwest Bancorp’s higher possible upside, equities analysts plainly believe First Northwest Bancorp is more favorable than Five Star Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Northwest Bancorp	5.35%	4.23%	0.29%
Five Star Bancorp	24.11%	14.73%	1.39%

Insider & Institutional Ownership

66.1% of First Northwest Bancorp shares are owned by institutional investors. Comparatively, 46.9% of Five Star Bancorp shares are owned by institutional investors. 5.5% of First Northwest Bancorp shares are owned by company insiders. Comparatively, 21.7% of Five Star Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

First Northwest Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 2.7%. Five Star Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. First Northwest Bancorp pays out 38.9% of its earnings in the form of a dividend. Five Star Bancorp pays out 34.5% 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.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Northwest Bancorp	$68.94 million	1.42	-$4.19 million	$0.72	14.39
Five Star Bancorp	$157.02 million	5.63	$61.61 million	$2.90	14.27

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

Risk & Volatility

First Northwest Bancorp has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Five Star Bancorp has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Summary

Five Star Bancorp beats First Northwest Bancorp on 11 of the 16 factors compared between the two stocks.

About First Northwest Bancorp

First Northwest Bancorp operates as a bank holding company for First Fed Bank that provides commercial and consumer banking services to individuals, businesses, and nonprofit organizations in western Washington, the United States. The company accepts various deposit instruments, including checking, money market deposit, savings, and transaction accounts, as well as certificates of deposit. It also originates one- to four-family mortgage loans, commercial and multi-family real estate loans, construction and land loans, and commercial business loans, as well as consumer loans primarily consisting of automobile loans, and home-equity loans and lines of credit. First Northwest Bancorp operates branch offices in Clallam, Jefferson, King, Kitsap, and Whatcom Counties, Washington. First Northwest Bancorp was founded in 1923 and is based in Port Angeles, Washington.

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.