Reviewing Five Star Bancorp (NASDAQ:FSBC) & First National Bank Alaska (OTCMKTS:FBAK)

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

Volatility and Risk

First National Bank Alaska has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500. Comparatively, Five Star Bancorp has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Institutional & Insider Ownership

46.9% of Five Star Bancorp shares are owned by institutional investors. 21.8% of Five Star Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares First National Bank Alaska and Five Star Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First National Bank Alaska	$265.67 million	3.79	$77.54 million	$25.56	12.44
Five Star Bancorp	$255.47 million	4.06	$61.61 million	$3.15	15.42

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

Dividends

First National Bank Alaska pays an annual dividend of $16.00 per share and has a dividend yield of 5.0%. Five Star Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.1%. First National Bank Alaska pays out 62.6% of its earnings in the form of a dividend. Five Star Bancorp pays out 31.7% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First National Bank Alaska	30.01%	14.23%	1.59%
Five Star Bancorp	25.23%	15.32%	1.42%

Analyst Ratings

This is a summary of current ratings and price targets for First National Bank Alaska and Five Star Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First National Bank Alaska	0	0	0	0	0.00
Five Star Bancorp	0	2	4	0	2.67

Five Star Bancorp has a consensus price target of $42.30, indicating a potential downside of 12.89%. Given Five Star Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Five Star Bancorp is more favorable than First National Bank Alaska.

Summary

Five Star Bancorp beats First National Bank Alaska on 10 of the 16 factors compared between the two stocks.

About First National Bank Alaska

First National Bank Alaska, a commercial bank, provides various banking products and services for business, industry, and individual customers primarily in Alaska. The company offers savings and checking accounts; money market deposits; safe deposit services; certificates of deposit; individual retirement accounts; and personal, home equity, and construction loans, as well as loans for stability and growth. It also provides investment, treasury, trust, and wealth management services; and escrow and contract collection, and bankcard services. In addition, the company offers debit and credit cards, online and mobile banking, fraud prevention, and convenience banking services. First National Bank Alaska was founded in 1922 and is headquartered in Anchorage, Alaska.

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.