First Business Financial Services (NASDAQ: FBIZ) is one of 208 publicly-traded companies in the “Commercial Banks” industry, but how does it compare to its competitors? We will compare First Business Financial Services to similar companies based on the strength of its profitability, earnings, risk, valuation, institutional ownership, analyst recommendations and dividends.

Risk and Volatility

First Business Financial Services has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, First Business Financial Services’ competitors have a beta of 0.74, indicating that their average share price is 26% less volatile than the S&P 500.

Profitability

This table compares First Business Financial Services and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Business Financial Services 12.64% 7.25% 0.66%
First Business Financial Services Competitors 19.75% 8.33% 0.88%

Analyst Recommendations

This is a summary of current ratings and recommmendations for First Business Financial Services and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Business Financial Services 0 3 0 0 2.00
First Business Financial Services Competitors 856 3984 2891 116 2.29

First Business Financial Services currently has a consensus target price of $24.50, suggesting a potential upside of 6.61%. As a group, “Commercial Banks” companies have a potential downside of 1.39%. Given First Business Financial Services’ higher probable upside, equities research analysts plainly believe First Business Financial Services is more favorable than its competitors.

Earnings and Valuation

This table compares First Business Financial Services and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
First Business Financial Services $66.32 million N/A 16.90
First Business Financial Services Competitors N/A N/A 25.70

First Business Financial Services is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

60.1% of First Business Financial Services shares are held by institutional investors. Comparatively, 46.6% of shares of all “Commercial Banks” companies are held by institutional investors. 6.6% of First Business Financial Services shares are held by insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

First Business Financial Services pays an annual dividend of $0.52 per share and has a dividend yield of 2.3%. First Business Financial Services pays out 38.2% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.7% of their earnings in the form of a dividend.

Summary

First Business Financial Services competitors beat First Business Financial Services on 9 of the 14 factors compared.

About First Business Financial Services

First Business Financial Services, Inc. (FBFS) is a bank holding company. The Company engages in the commercial banking business through its bank subsidiaries, which include First Business Bank (FBB), First Business Bank-Milwaukee (FBB-Milwaukee) and Alterra Bank (Alterra) (FBB and FBB-Milwaukee and, together with FBB, the Banks). The operations of FBFS are conducted through the Banks and certain subsidiaries of FBB. The Banks operate as business banks focusing on delivering a line of commercial banking products, including commercial loans and commercial real estate loans, and services to meet the needs of small- and medium-sized businesses, business owners, executives, professionals and high net worth individuals. Its business lines include commercial lending, asset-based financing, equipment financing, small business administration (SBA) lending, treasury management services, and trust and investment services. Its investments include short-term investments and securities.

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