United Security Bancshares (NASDAQ:UBFO – Get Free Report) and Five Star Bancorp (NASDAQ:FSBC – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.
Earnings and Valuation
This table compares United Security Bancshares and Five Star Bancorp”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Security Bancshares | $65.90 million | 2.73 | $12.29 million | $0.71 | 14.38 |
| Five Star Bancorp | $255.47 million | 3.11 | $61.61 million | $2.90 | 12.80 |
Volatility & Risk
United Security Bancshares has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, Five Star Bancorp has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for United Security Bancshares and Five Star Bancorp, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Security Bancshares | 0 | 0 | 1 | 0 | 3.00 |
| Five Star Bancorp | 0 | 2 | 5 | 0 | 2.71 |
Five Star Bancorp has a consensus price target of $40.00, indicating a potential upside of 7.79%. Given Five Star Bancorp’s higher possible upside, analysts clearly believe Five Star Bancorp is more favorable than United Security Bancshares.
Institutional & Insider Ownership
30.9% of United Security Bancshares shares are owned by institutional investors. Comparatively, 46.9% of Five Star Bancorp shares are owned by institutional investors. 22.1% of United Security Bancshares shares are owned by company insiders. Comparatively, 21.7% of Five Star Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares United Security Bancshares and Five Star Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Security Bancshares | 18.65% | 9.11% | 1.01% |
| Five Star Bancorp | 24.11% | 14.49% | 1.36% |
Dividends
United Security Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 4.7%. Five Star Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.7%. United Security Bancshares pays out 67.6% of its earnings in the form of a dividend. Five Star Bancorp pays out 34.5% 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. United Security Bancshares has raised its dividend for 2 consecutive years. United Security Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Five Star Bancorp beats United Security Bancshares on 12 of the 17 factors compared between the two stocks.
About United Security Bancshares
United Security Bancshares operates as the bank holding company for United Security Bank, a state-chartered bank that provides a range of commercial banking services to the business and professional community, and individuals in California. The company accepts various deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit. It also provides real estate mortgage, commercial and industrial, real estate construction and development, and consumer loans, as well as agricultural, installment, and student loans. In addition, the company offers online and mobile banking, safe deposit boxes, wire transfers, payroll direct deposit, cashier's check, cash management, and foreign draft services, as well as interactive teller machines; and person-to-person and bank-to-bank transfers for consumer customers. United Security Bancshares was founded in 1987 and is headquartered in Fresno, California.
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.
Receive News & Ratings for United Security Bancshares Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for United Security Bancshares and related companies with MarketBeat.com's FREE daily email newsletter.
