1st Capital Bancorp (OTCMKTS:FISB) & SmartFinancial (NASDAQ:SMBK) Head to Head Analysis

1st Capital Bancorp (OTCMKTS:FISB) and SmartFinancial (NASDAQ:SMBK) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares 1st Capital Bancorp and SmartFinancial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
1st Capital Bancorp	8.20%	N/A	N/A
SmartFinancial	12.67%	7.33%	0.71%

Earnings & Valuation

This table compares 1st Capital Bancorp and SmartFinancial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
1st Capital Bancorp	$41.09 million	1.91	$3.54 million	N/A	N/A
SmartFinancial	$187.06 million	3.33	$36.14 million	$2.47	14.83

SmartFinancial has higher revenue and earnings than 1st Capital Bancorp.

Analyst Recommendations

This is a summary of current ratings and price targets for 1st Capital Bancorp and SmartFinancial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
1st Capital Bancorp	0	0	0	0	0.00
SmartFinancial	0	3	0	1	2.50

SmartFinancial has a consensus price target of $38.25, indicating a potential upside of 4.39%. Given SmartFinancial’s stronger consensus rating and higher possible upside, analysts clearly believe SmartFinancial is more favorable than 1st Capital Bancorp.

Volatility & Risk

1st Capital Bancorp has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, SmartFinancial has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Institutional and Insider Ownership

8.1% of 1st Capital Bancorp shares are owned by institutional investors. Comparatively, 58.8% of SmartFinancial shares are owned by institutional investors. 7.6% of SmartFinancial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

SmartFinancial beats 1st Capital Bancorp on 12 of the 13 factors compared between the two stocks.

About 1st Capital Bancorp

1st Capital Bancorp operates as the bank holding company for 1st Capital Bank that provides various banking products and services for businesses, professionals, real estate investors, family commercial entities, and individuals in the Central Coast region of California. It offers checking, saving, money market, savings, and certificate of deposit accounts, as well as individual retirement and health savings accounts; and other services including debit cards, check orders, and cannabis banking services. The company also provides lending services, which includes business, agriculture, and wine industry lending; commercial real estate and personal loans; and small business administration loans, and government guaranteed lending solutions. In addition, it offers electronic banking services including online services, such as personal and business online banking; and cash management services comprising ACH origination, online wire transfer, positive pay, merchant card, and remote deposit capture services. The company was founded in 2007 and is headquartered in Salinas, California.

About SmartFinancial

SmartFinancial, Inc. operates as the bank holding company for SmartBank that provides various financial services to individuals and corporate customers in Tennessee, Alabama, and Florida. It operates through Commercial Real Estate, Consumer Real Estate, Construction and Land Development, Commercial and Industrial, Leases, and Consumer and Other segments. The company offers noninterest-bearing and interest-bearing checking, interest-bearing demand, savings, money market, time deposit, individual retirement accounts, as well as certificates of deposit. It also provides commercial and residential real estate, consumer real estate, and construction and land development loans; commercial and financial loans and leases; commercial business and mortgage loans; and direct consumer installment, educational, agriculture, and other revolving credit loans; equipment financing, heavy equipment, semis, and trailers loans and leases to small and mid-size companies; letters of credit; and overdraft facilities. In addition, the company offers wealth management, insurance, mortgage origination, and internet and mobile banking services. SmartFinancial, Inc. is headquartered in Knoxville, Tennessee.