Head to Head Review: 1st Colonial Bancorp (OTCMKTS:FCOB) vs. Westamerica Bancorporation (NASDAQ:WABC)

Westamerica Bancorporation (NASDAQ:WABC) and 1st Colonial Bancorp (OTCMKTS:FCOB) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Profitability

This table compares Westamerica Bancorporation and 1st Colonial Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westamerica Bancorporation	48.35%	21.99%	2.42%
1st Colonial Bancorp	17.09%	11.56%	0.92%

Valuation & Earnings

This table compares Westamerica Bancorporation and 1st Colonial Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westamerica Bancorporation	$327.54 million	4.02	$161.77 million	$5.92	8.33
1st Colonial Bancorp	$42.11 million	1.70	$7.43 million	$1.55	9.74

Westamerica Bancorporation has higher revenue and earnings than 1st Colonial Bancorp. Westamerica Bancorporation is trading at a lower price-to-earnings ratio than 1st Colonial Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Westamerica Bancorporation and 1st Colonial Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westamerica Bancorporation	0	2	0	0	2.00
1st Colonial Bancorp	0	0	0	0	N/A

Westamerica Bancorporation currently has a consensus price target of $53.50, suggesting a potential upside of 8.45%. Given Westamerica Bancorporation’s higher probable upside, equities research analysts clearly believe Westamerica Bancorporation is more favorable than 1st Colonial Bancorp.

Insider & Institutional Ownership

81.9% of Westamerica Bancorporation shares are owned by institutional investors. Comparatively, 13.4% of 1st Colonial Bancorp shares are owned by institutional investors. 5.5% of Westamerica Bancorporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Westamerica Bancorporation has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, 1st Colonial Bancorp has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Summary

Westamerica Bancorporation beats 1st Colonial Bancorp on 10 of the 12 factors compared between the two stocks.

About Westamerica Bancorporation

Westamerica Bancorporation operates as a bank holding company for the Westamerica Bank that provides various banking products and services to individual and commercial customers. The company accepts various deposit products, including retail savings and checking accounts, as well as certificates of deposit. Its loan portfolio includes commercial, commercial and residential real estate, real estate construction, and consumer installment loans, as well as indirect automobile loans. The company was formerly known as Independent Bankshares Corporation and changed its name to Westamerica Bancorporation in 1983. The company was founded in 1884 and is headquartered in San Rafael, California.

About 1st Colonial Bancorp

1st Colonial Bancorp, Inc. operates as the bank holding company for 1st Colonial Community Bank that provides a range of business and consumer financial services in New Jersey. The company offers various deposit products, including savings accounts, money market accounts, certificates of deposit, club accounts, and business and personal checking accounts. It also provides home equity loans, home equity lines of credit, personal and vehicle loans, residential and commercial mortgages, construction loans, business lines of credit, equipment and vehicle financing, real estate loans, working capital line of credit, and business acquisition loans, as well as small business administration loans. In addition, the company offers cash management services comprising remote deposit capture, ACH/wire transfer, night deposit drop, and merchant services; safe deposit boxes; and coin counting, online and mobile banking, debit card, and ATM services. The company was founded in 2000 and is headquartered in Mount Laurel, New Jersey.