Comparing FB Bancorp (NASDAQ:FBLA) & Hanmi Financial (NASDAQ:HAFC)

Hanmi Financial (NASDAQ:HAFC) and FB Bancorp (NASDAQ:FBLA) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Valuation & Earnings

This table compares Hanmi Financial and FB Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hanmi Financial	$444.90 million	2.11	$76.09 million	$2.97	10.66
FB Bancorp	$69.94 million	3.87	$1.25 million	($0.01)	-1,696.00

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

Risk and Volatility

Hanmi Financial has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, FB Bancorp has a beta of -0.1, suggesting that its share price is 110% less volatile than the S&P 500.

Profitability

This table compares Hanmi Financial and FB Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hanmi Financial	19.82%	11.20%	1.13%
FB Bancorp	-0.36%	0.91%	0.22%

Analyst Recommendations

This is a summary of current ratings and target prices for Hanmi Financial and FB Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hanmi Financial	0	4	2	0	2.33
FB Bancorp	1	0	0	0	1.00

Hanmi Financial currently has a consensus target price of $33.00, suggesting a potential upside of 4.20%. Given Hanmi Financial’s stronger consensus rating and higher probable upside, equities analysts clearly believe Hanmi Financial is more favorable than FB Bancorp.

Institutional & Insider Ownership

88.7% of Hanmi Financial shares are owned by institutional investors. 2.1% of Hanmi Financial shares are owned by company insiders. Comparatively, 3.8% of FB Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Hanmi Financial beats FB Bancorp on 12 of the 14 factors compared between the two stocks.

About Hanmi Financial

Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States. It offers various deposit products, including noninterest-bearing checking accounts, savings accounts, negotiable order of withdrawal accounts, money market accounts, and certificates of deposit. The company also provides real estate loans, such as commercial property, construction, and residential property loans; and commercial and industrial loans, such as commercial term loans and commercial lines of credit; and international finance and trade services and products, such as letters of credit, and import and export financing. In addition, it offers small business administration loans for business purposes, which comprise owner-occupied commercial real estate, business acquisitions, start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt-refinancing, as well as equipment lease financing. The company was founded in 1982 and is headquartered in Los Angeles, California.

About FB Bancorp

FB Bancorp Inc. operates as a bank holding company for Fidelity Bank. The Company, through its subsidiaries, provides deposit accounts, mortgages, home equity and consumer loans, credit and debit cards, online and mobile banking, investments and other financial services. FB Bancorp Inc. is based in New Orleans.