Fifth District Bancorp (NASDAQ:FDSB) and Coastal Financial (NASDAQ:CCB) Head to Head Comparison

Fifth District Bancorp (NASDAQ:FDSB) and Coastal Financial (NASDAQ:CCB) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.

Profitability

This table compares Fifth District Bancorp and Coastal Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fifth District Bancorp	6.97%	1.27%	0.31%
Coastal Financial	-0.53%	-0.80%	-0.08%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Fifth District Bancorp and Coastal Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fifth District Bancorp	0	1	0	0	2.00
Coastal Financial	2	0	5	0	2.43

Coastal Financial has a consensus target price of $91.33, suggesting a potential upside of 117.36%. Given Coastal Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Coastal Financial is more favorable than Fifth District Bancorp.

Risk and Volatility

Fifth District Bancorp has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500. Comparatively, Coastal Financial has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Institutional & Insider Ownership

59.2% of Coastal Financial shares are held by institutional investors. 8.6% of Fifth District Bancorp shares are held by company insiders. Comparatively, 13.5% of Coastal Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Fifth District Bancorp and Coastal Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fifth District Bancorp	$26.49 million	3.34	$4.09 million	$0.34	49.65
Coastal Financial	$661.22 million	0.97	$46.99 million	($0.28)	-150.07

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

Summary

Coastal Financial beats Fifth District Bancorp on 8 of the 14 factors compared between the two stocks.

About Fifth District Bancorp

Fifth District Bancorp, Inc. is the holding company for Fifth District Savings Bank which provide all banking services. Fifth District Bancorp, Inc. is based in NEW ORLEANS.

About Coastal Financial

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company also offers commercial and industrial loans, such as term loans, commercial lines of credit, capital call lines working capital loans, equipment financing, borrowing base loans, small business administration loans, and other loan products; owner and non-owner-occupied real estate loans, and multi-family residential loans; construction, land, and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as personal lines of credit, including overdraft protection. In addition, it provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services; and debit cards. Further, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as Banking as a Service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their customers banking services. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.