Reviewing USCB Financial (NASDAQ:USCB) and Fifth District Bancorp (NASDAQ:FDSB)

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

Analyst Ratings

This is a summary of recent ratings and price targets for USCB Financial and Fifth District Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
USCB Financial	0	2	2	1	2.80
Fifth District Bancorp	1	0	0	0	1.00

USCB Financial presently has a consensus target price of $22.00, suggesting a potential upside of 18.79%. Given USCB Financial’s stronger consensus rating and higher possible upside, analysts clearly believe USCB Financial is more favorable than Fifth District Bancorp.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
USCB Financial	$159.60 million	2.12	$26.10 million	$1.43	12.95
Fifth District Bancorp	$17.86 million	4.46	$4.09 million	$0.87	17.37

USCB Financial has higher revenue and earnings than Fifth District Bancorp. USCB 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
USCB Financial	17.04%	15.37%	1.22%
Fifth District Bancorp	16.35%	3.37%	0.82%

Institutional and Insider Ownership

61.3% of USCB Financial shares are owned by institutional investors. 49.5% of USCB Financial shares are owned by company insiders. Comparatively, 8.6% of Fifth District Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

USCB Financial has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Fifth District Bancorp has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.

Summary

USCB Financial beats Fifth District Bancorp on 13 of the 15 factors compared between the two stocks.

About USCB Financial

USCB Financial Holdings, Inc. operates as the bank holding company for U.S. Century Bank that engages in the provision of various personal and business banking products and services in the United States. It accepts various deposit products, including commercial and consumer checking, money market deposit, savings, and time deposit accounts, as well as certificates of deposit. It also offers loan products, such as small business administration loans, yacht financing, residential and commercial real estate loans; commercial and industrial loans; foreign bank loans; and secured and unsecured consumer loans comprising personal loans, overdrafts, and deposit account collateralized loans. The company also offers lockbox, treasury, commercial payments, cash management, and online banking services, as well as provides title insurance policies for real estate transactions. USCB Financial Holdings, Inc. was founded in 2002 and is headquartered in Miami, Florida.

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.