Financial Comparison: First Resource Bancorp (OTCMKTS:FRSB) and Financial Institutions (NASDAQ:FISI)

First Resource Bancorp (OTCMKTS:FRSB) and Financial Institutions (NASDAQ:FISI) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Insider & Institutional Ownership

60.5% of Financial Institutions shares are held by institutional investors. 2.4% of Financial Institutions 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.

Analyst Ratings

This is a breakdown of recent recommendations for First Resource Bancorp and Financial Institutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Resource Bancorp	0	0	0	0	0.00
Financial Institutions	0	2	2	0	2.50

Financial Institutions has a consensus target price of $37.00, suggesting a potential downside of 4.96%. Given Financial Institutions’ stronger consensus rating and higher possible upside, analysts plainly believe Financial Institutions is more favorable than First Resource Bancorp.

Profitability

This table compares First Resource Bancorp and Financial Institutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Resource Bancorp	19.11%	N/A	N/A
Financial Institutions	20.85%	13.08%	1.26%

Dividends

First Resource Bancorp pays an annual dividend of $0.08 per share and has a dividend yield of 0.3%. Financial Institutions pays an annual dividend of $1.28 per share and has a dividend yield of 3.3%. First Resource Bancorp pays out 2.7% of its earnings in the form of a dividend. Financial Institutions pays out 33.3% 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. Financial Institutions has raised its dividend for 1 consecutive years. Financial Institutions is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares First Resource Bancorp and Financial Institutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Resource Bancorp	$44.33 million	1.60	$8.16 million	$2.98	7.89
Financial Institutions	$377.94 million	2.03	$74.87 million	$3.84	10.14

Financial Institutions has higher revenue and earnings than First Resource Bancorp. First Resource Bancorp is trading at a lower price-to-earnings ratio than Financial Institutions, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

First Resource Bancorp has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500. Comparatively, Financial Institutions has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Summary

Financial Institutions beats First Resource Bancorp on 16 of the 17 factors compared between the two stocks.

About First Resource Bancorp

First Resource Bancorp, Inc. operates as the bank holding for First Resource Bank that provides personal and business banking products and services to businesses and families primarily in the southeastern area of Pennsylvania. The company's offers savings, checking, and money market accounts, as well as certificate deposit account registry services, insured cash sweeps, certificates of deposit, and IRAs. Its loan products include commercial mortgages, construction loans, working capital credit lines, small business administration loans, commercial term loans, home equity lines of credit, fixed payment home equity loans, residential construction loans, land loans, overdraft protection, vehicle loans, unsecured installment loans, certificate of deposit secured installment loans, and swing loans. The company also provides personal financial statements; credit and debit cards; digital banking services; and cash management, positive pay, ACH origination, sweep/transfer of funds, ATM, over the counter checks, bill payment, wire transfer, signature guarantee/notary, safe deposit box, drive-up banking, night depository, foreign currency exchange, cashier's check, e-statements, and stop payments, as well as telephone, messaging and text, online, and mobile banking services. First Resource Bancorp, Inc. was founded in 2005 and is based in Exton, Pennsylvania.

About Financial Institutions

Financial Institutions, Inc. operates as a holding company for the Five Star Bank, a chartered bank that provides banking and financial services to individuals, municipalities, and businesses in New York. The company provides checking and savings account programs, including money market accounts, certificates of deposit, sweep investments, and individual retirement and other qualified plan accounts, as well as NOW accounts. Its loan products include term loans and lines of credit; short and medium-term commercial loans for working capital, business expansion, and purchase of equipment; commercial business loans to the agricultural industry; commercial mortgage loans; one-to-four family residential mortgage loans, home improvement loans, closed-end home equity loans, and home equity lines of credit; and consumer loans, such as automobile, secured installment, and personal loans. The company offers personal insurance products, including automobile, homeowners, boat, recreational vehicle, landlord, and umbrella coverage; commercial insurance comprising property, liability, automobile, inland marine, workers compensation, bonds, crop, and umbrella insurance products; and financial services, such as life and disability insurance, medicare supplements, long-term care, annuities, mutual funds, and retirement programs. In addition, it offers customized investment advisory, wealth management, investment consulting, and retirement plan services, as well as operates a real estate investment trust that holds residential mortgages and commercial real estate loans. Financial Institutions, Inc. was founded in 1817 and is headquartered in Warsaw, New York.