Head to Head Contrast: First Us Bancsh (NASDAQ:FUSB) & M&F Bancorp (OTCMKTS:MFBP)

M&F Bancorp (OTCMKTS:MFBP) and First Us Bancsh (NASDAQ:FUSB) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Risk and Volatility

M&F Bancorp has a beta of -0.63, suggesting that its share price is 163% less volatile than the S&P 500. Comparatively, First Us Bancsh has a beta of 0.28, suggesting that its share price is 72% less volatile than the S&P 500.

Profitability

This table compares M&F Bancorp and First Us Bancsh’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
M&F Bancorp	N/A	N/A	N/A
First Us Bancsh	8.98%	5.49%	0.49%

Valuation and Earnings

This table compares M&F Bancorp and First Us Bancsh”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
M&F Bancorp	$29.33 million	1.30	$4.77 million	$1.99	9.89
First Us Bancsh	$61.84 million	1.30	$8.17 million	$0.93	15.03

First Us Bancsh has higher revenue and earnings than M&F Bancorp. M&F Bancorp is trading at a lower price-to-earnings ratio than First Us Bancsh, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

18.7% of First Us Bancsh shares are owned by institutional investors. 2.9% of M&F Bancorp shares are owned by company insiders. Comparatively, 11.2% of First Us Bancsh shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

M&F Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. First Us Bancsh pays an annual dividend of $0.28 per share and has a dividend yield of 2.0%. M&F Bancorp pays out 12.1% of its earnings in the form of a dividend. First Us Bancsh pays out 30.1% 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. First Us Bancsh has raised its dividend for 3 consecutive years. First Us Bancsh is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for M&F Bancorp and First Us Bancsh, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
M&F Bancorp	0	0	0	0	0.00
First Us Bancsh	0	1	0	0	2.00

Summary

First Us Bancsh beats M&F Bancorp on 13 of the 15 factors compared between the two stocks.

About M&F Bancorp

M&F Bancorp, Inc. operates as a bank holding company for the Mechanics and Farmers Bank that provides consumer and commercial banking products and services in North Carolina. It offers deposit products, including demand deposits; checking, savings, and money market accounts, as well as certificates of deposit. The company provides loans for commercial and residential real estate, and construction; and consumer and other loans; as well as ATM services. M&F Bancorp, Inc. was founded in 1907 and is headquartered in Durham, North Carolina.

About First Us Bancsh

First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services. The company offers non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include commercial construction, land, and land development loans, including residential housing projects, commercial and industrial development, and for purchase and improvement of raw land for agricultural production; mortgage loans on one-to-four family and multi-family residential properties; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, and other commercial properties; commercial and industrial loans and leases; and secured and unsecured personal loans, including automobile loans, loans for household and personal purposes, and other direct consumer installment loans. The company also provides loans secured by collateral in form of personal property items. In addition, it provides letters of credit; and safe deposit box and remote deposit capture services. The company serves small-and medium-sized businesses, property managers, business executives, professionals, and other individuals. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is headquartered in Birmingham, Alabama.