First Business Financial Services (NASDAQ: FBIZ) is one of 207 public companies in the “Commercial Banks” industry, but how does it compare to its rivals? We will compare First Business Financial Services to similar companies based on the strength of its profitability, institutional ownership, valuation, dividends, risk, earnings and analyst recommendations.

Risk and Volatility

First Business Financial Services has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, First Business Financial Services’ rivals have a beta of 0.74, suggesting that their average stock price is 26% less volatile than the S&P 500.

Profitability

This table compares First Business Financial Services and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Business Financial Services 12.64% 7.25% 0.66%
First Business Financial Services Competitors 19.77% 8.38% 0.88%

Insider and Institutional Ownership

60.1% of First Business Financial Services shares are owned by institutional investors. Comparatively, 46.5% of shares of all “Commercial Banks” companies are owned by institutional investors. 6.6% of First Business Financial Services shares are owned by insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for First Business Financial Services and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Business Financial Services 0 3 0 0 2.00
First Business Financial Services Competitors 380 2903 2375 70 2.37

First Business Financial Services currently has a consensus price target of $24.50, suggesting a potential upside of 7.93%. As a group, “Commercial Banks” companies have a potential downside of 0.43%. Given First Business Financial Services’ higher probable upside, analysts clearly believe First Business Financial Services is more favorable than its rivals.

Earnings and Valuation

This table compares First Business Financial Services and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
First Business Financial Services $66.32 million N/A 16.69
First Business Financial Services Competitors N/A N/A 25.80

First Business Financial Services is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

First Business Financial Services pays an annual dividend of $0.52 per share and has a dividend yield of 2.3%. First Business Financial Services pays out 38.2% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.7% of their earnings in the form of a dividend.

Summary

First Business Financial Services rivals beat First Business Financial Services on 9 of the 14 factors compared.

About First Business Financial Services

First Business Financial Services, Inc. (FBFS) is a bank holding company. The Company engages in the commercial banking business through its bank subsidiaries, which include First Business Bank (FBB), First Business Bank-Milwaukee (FBB-Milwaukee) and Alterra Bank (Alterra) (FBB and FBB-Milwaukee and, together with FBB, the Banks). The operations of FBFS are conducted through the Banks and certain subsidiaries of FBB. The Banks operate as business banks focusing on delivering a line of commercial banking products, including commercial loans and commercial real estate loans, and services to meet the needs of small- and medium-sized businesses, business owners, executives, professionals and high net worth individuals. Its business lines include commercial lending, asset-based financing, equipment financing, small business administration (SBA) lending, treasury management services, and trust and investment services. Its investments include short-term investments and securities.

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