Contrasting Suncrest Bank (OTCMKTS:SBKK) & Five Star Bancorp (NASDAQ:FSBC)

Five Star Bancorp (NASDAQ:FSBC) and Suncrest Bank (OTCMKTS:SBKK) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for Five Star Bancorp and Suncrest Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Five Star Bancorp	0	1	2	0	2.67
Suncrest Bank	0	0	0	0	N/A

Five Star Bancorp currently has a consensus price target of $27.00, indicating a potential upside of 9.49%. Given Five Star Bancorp’s higher probable upside, equities research analysts plainly believe Five Star Bancorp is more favorable than Suncrest Bank.

Valuation & Earnings

This table compares Five Star Bancorp and Suncrest Bank’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Five Star Bancorp	$181.89 million	2.89	$47.73 million	$2.63	9.38
Suncrest Bank	$46.73 million	4.92	$16.96 million	$1.37	13.56

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

Institutional & Insider Ownership

46.9% of Five Star Bancorp shares are held by institutional investors. Comparatively, 5.9% of Suncrest Bank shares are held by institutional investors. 25.6% of Five Star Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Five Star Bancorp	23.84%	16.12%	1.29%
Suncrest Bank	N/A	N/A	N/A

Volatility and Risk

Five Star Bancorp has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, Suncrest Bank has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Summary

Five Star Bancorp beats Suncrest Bank on 10 of the 13 factors compared between the two stocks.

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.

About Suncrest Bank

Suncrest Bank engages in the provision of personal and commercial banking services. It provides checking, savings and certificates of deposits, lending, cash management, online and mobile banking, e-statements, remote deposit capture, financial calculators, and customer service center. It also offers agricultural real estate loans, production finance, equipment financing and leasing, development loans, long-term fixed rate, SBA and USDA loans, valley small business guaranteed loans, USDA B&I loans, farmer mac loans, and cal-cap loans. The company was founded on May 19, 2008 and is headquartered in Visalia, CA.