FirstSun Capital Bancorp (NASDAQ:FSUN) & First Business Financial Services (NASDAQ:FBIZ) Head-To-Head Comparison

First Business Financial Services (NASDAQ:FBIZ) and FirstSun Capital Bancorp (NASDAQ:FSUN) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Risk and Volatility

First Business Financial Services has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, FirstSun Capital Bancorp has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500.

Earnings & Valuation

This table compares First Business Financial Services and FirstSun Capital Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Business Financial Services	$262.38 million	1.80	$44.24 million	$6.08	9.35
FirstSun Capital Bancorp	$549.33 million	1.98	$75.63 million	$3.16	12.36

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

Institutional & Insider Ownership

60.1% of First Business Financial Services shares are held by institutional investors. 5.1% of First Business Financial Services shares are held by insiders. Comparatively, 12.5% of FirstSun Capital Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares First Business Financial Services and FirstSun Capital Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Business Financial Services	18.55%	14.89%	1.24%
FirstSun Capital Bancorp	15.94%	9.00%	1.17%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for First Business Financial Services and FirstSun Capital Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Business Financial Services	0	0	4	0	3.00
FirstSun Capital Bancorp	0	1	3	0	2.75

First Business Financial Services currently has a consensus price target of $60.67, suggesting a potential upside of 6.69%. FirstSun Capital Bancorp has a consensus price target of $43.33, suggesting a potential upside of 10.91%. Given FirstSun Capital Bancorp’s higher probable upside, analysts clearly believe FirstSun Capital Bancorp is more favorable than First Business Financial Services.

About First Business Financial Services

First Business Financial Services, Inc. operates as the bank holding company for First Business Bank that provides commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals in Wisconsin, Kansas, and Missouri. The company offers real estate lending, commercial and industrial lending, asset-based lending, accounts receivable financing, equipment financing loans and leases, floorplan financing, vendor financing, small business administration lending and servicing, treasury management solutions, and company retirement services. It also provides private wealth management for individuals, including creating and executing asset allocation strategies, trust and estate administration, financial planning, investment management, and access to brokerage and custody-only services. In addition, the company offers bank consulting consisting of investment portfolio administrative and asset liability management services, and commercial deposit accounts. The company was founded in 1909 and is headquartered in Madison, Wisconsin.

About FirstSun Capital Bancorp

FirstSun Capital Bancorp engages in the provision of commercial banking services. It operates through the following segments: Banking, Mortgage Operations, and Corporate. The Banking segment consists of loans and provides deposits and fee-based services to consumer, business, and mortgage lending customers. The Mortgage Operations segment originates, sells, services, and manages market risk from changes in interest rates on one-to-four family residential mortgage loans to sell and hold. The company is founded on November 9, 1981 headquartered in Denver, CO.