First Us Bancsh (NASDAQ:FUSB) & Chiba Bank (OTCMKTS:CHBAY) Financial Analysis

First Us Bancsh (NASDAQ:FUSB) and Chiba Bank (OTCMKTS:CHBAY) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Volatility & Risk

First Us Bancsh has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500. Comparatively, Chiba Bank has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500.

Insider and Institutional Ownership

18.7% of First Us Bancsh shares are held by institutional investors. 12.1% of First Us Bancsh shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

First Us Bancsh pays an annual dividend of $0.28 per share and has a dividend yield of 1.7%. Chiba Bank pays an annual dividend of $1.23 per share and has a dividend yield of 1.4%. First Us Bancsh pays out 21.2% of its earnings in the form of a dividend. Chiba Bank pays out 26.1% 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. First Us Bancsh has raised its dividend for 3 consecutive years. First Us Bancsh is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current recommendations for First Us Bancsh and Chiba Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Us Bancsh	0	1	0	0	2.00
Chiba Bank	0	0	0	1	4.00

Profitability

This table compares First Us Bancsh and Chiba Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Us Bancsh	12.10%	7.41%	0.67%
Chiba Bank	20.96%	8.25%	0.49%

Earnings and Valuation

This table compares First Us Bancsh and Chiba Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Us Bancsh	$62.99 million	1.44	$5.99 million	$1.32	12.51
Chiba Bank	$2.96 billion	4.73	$620.82 million	$4.72	19.12

Chiba Bank has higher revenue and earnings than First Us Bancsh. First Us Bancsh is trading at a lower price-to-earnings ratio than Chiba Bank, indicating that it is currently the more affordable of the two stocks.

Summary

Chiba Bank beats First Us Bancsh on 9 of the 16 factors compared between the two stocks.

About First Us Bancsh

First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services. The company offers non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include commercial construction, land, and land development loans, including residential housing projects, commercial and industrial development, and for purchase and improvement of raw land for agricultural production; mortgage loans on one-to-four family and multi-family residential properties; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, and other commercial properties; commercial and industrial loans and leases; and secured and unsecured personal loans, including automobile loans, loans for household and personal purposes, and other direct consumer installment loans. The company also provides loans secured by collateral in form of personal property items. In addition, it provides letters of credit; and safe deposit box and remote deposit capture services. The company serves small-and medium-sized businesses, property managers, business executives, professionals, and other individuals. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is headquartered in Birmingham, Alabama.

About Chiba Bank

The Chiba Bank, Ltd., together with its subsidiaries, provides banking products and services in Japan and internationally. The company offers various deposit products, including savings, time deposits, currency deposits, investment trusts, bonds, and pensions; loans, which include mortgages, renovation loans, photovoltaic, vehicle, education, and other loan products; and insurance products, such as annuity, life, medical, student, death, and travel insurance. It also offers debit and credit cards, as well as internet banking services. In addition, the company engages in securities, investment management and advisory, software development, commissioned computation tasks, research and investigation of IT and financial technologies, leasing, operation, and management of investment funds, mergers and acquisition advisory, credit guarantee businesses, management and collection of claims businesses. Further, it provides loan guarantees and fee collection services; accounting, general administration entrustment, and temporary staff services; and is involved in outsourcing of operational business. Additionally, it rents and maintains office buildings and welfare facilities; provides research, survey, and consulting services; purchases and sells supplies and consumer goods; and engages in renewable energy generation. The company serves individuals and corporations. The Chiba Bank, Ltd. was incorporated in 1943 and is headquartered in Chiba City, Japan.