Contrasting Eagle Bancorp Montana (NASDAQ:EBMT) & FirstSun Capital Bancorp (NASDAQ:FSUN)

Eagle Bancorp Montana (NASDAQ:EBMT) and FirstSun Capital Bancorp (NASDAQ:FSUN) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Eagle Bancorp Montana and FirstSun Capital Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eagle Bancorp Montana	0	3	0	1	2.50
FirstSun Capital Bancorp	1	1	4	0	2.50

Eagle Bancorp Montana presently has a consensus target price of $23.50, suggesting a potential downside of 1.59%. FirstSun Capital Bancorp has a consensus target price of $44.00, suggesting a potential upside of 14.85%. Given FirstSun Capital Bancorp’s higher probable upside, analysts clearly believe FirstSun Capital Bancorp is more favorable than Eagle Bancorp Montana.

Volatility & Risk

Eagle Bancorp Montana has a beta of 0.35, suggesting that its share price is 65% less volatile than the S&P 500. Comparatively, FirstSun Capital Bancorp has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Institutional & Insider Ownership

35.7% of Eagle Bancorp Montana shares are held by institutional investors. 5.8% of Eagle Bancorp Montana shares are held by insiders. Comparatively, 12.5% of FirstSun Capital Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Eagle Bancorp Montana and FirstSun Capital Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eagle Bancorp Montana	12.16%	8.29%	0.74%
FirstSun Capital Bancorp	16.52%	8.80%	1.18%

Earnings & Valuation

This table compares Eagle Bancorp Montana and FirstSun Capital Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eagle Bancorp Montana	$127.08 million	1.50	$14.84 million	$1.98	12.06
FirstSun Capital Bancorp	$422.78 million	4.24	$97.94 million	$3.39	11.30

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

Summary

FirstSun Capital Bancorp beats Eagle Bancorp Montana on 11 of the 14 factors compared between the two stocks.

About Eagle Bancorp Montana

Eagle Bancorp Montana, Inc. operates as the bank holding company for Opportunity Bank of Montana that provides various retail banking products and services to small businesses and individuals in Montana. It accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposit accounts. The company also provides 1-4 family residential mortgage loans, such as residential mortgages and construction of residential properties; commercial real estate loans, including multi-family dwellings, nonresidential property, commercial construction and development, and farmland loans; and second mortgage/home equity loans. In addition, it offers consumer loans, such as loans secured by collateral other than real estate, such as automobiles, recreational vehicles, and boats; personal loans and lines of credit; commercial business loans consisting of business loans and lines of credit on a secured and unsecured basis; construction loans; agricultural loans; and mortgage loan services. The company operates full-service branches and automated teller machines. Eagle Bancorp Montana, Inc. was founded in 1922 and is headquartered in Helena, Montana.

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.