Byline Bancorp (NYSE:BY) versus First Northern Community Bancorp (NASDAQ:FNRN) Head-To-Head Analysis

First Northern Community Bancorp (NASDAQ:FNRN) and Byline Bancorp (NYSE:BY) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Valuation and Earnings

This table compares First Northern Community Bancorp and Byline Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Northern Community Bancorp	$88.40 million	3.26	$21.13 million	$1.35	13.03
Byline Bancorp	$633.15 million	2.62	$130.05 million	$3.31	11.10

Byline Bancorp has higher revenue and earnings than First Northern Community Bancorp. Byline Bancorp is trading at a lower price-to-earnings ratio than First Northern Community Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares First Northern Community Bancorp and Byline Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Northern Community Bancorp	24.97%	10.68%	1.18%
Byline Bancorp	23.36%	11.84%	1.53%

Analyst Ratings

This is a summary of current ratings and target prices for First Northern Community Bancorp and Byline Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Northern Community Bancorp	0	0	1	0	3.00
Byline Bancorp	0	3	3	0	2.50

Byline Bancorp has a consensus target price of $43.00, suggesting a potential upside of 17.04%. Given Byline Bancorp’s higher probable upside, analysts plainly believe Byline Bancorp is more favorable than First Northern Community Bancorp.

Insider & Institutional Ownership

17.9% of First Northern Community Bancorp shares are held by institutional investors. Comparatively, 67.7% of Byline Bancorp shares are held by institutional investors. 11.9% of First Northern Community Bancorp shares are held by insiders. Comparatively, 29.1% of Byline Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Byline Bancorp beats First Northern Community Bancorp on 9 of the 13 factors compared between the two stocks.

About First Northern Community Bancorp

First Northern Community Bancorp operates as the bank holding company for First Northern Bank of Dixon that provides commercial banking products and services to individuals, and small to medium sized businesses. The company accepts demand deposits, interest-bearing transaction deposits, savings and money market accounts, and time deposits. Its loan portfolio comprises of commercial, commercial real estate, agriculture, residential mortgage, residential construction, and consumer loans. The company also offers credit cards; investment and brokerage services; alternative investment products, and fiduciary and other financial services; and equipment leasing, merchant card processing, payroll, and international banking services through third parties. In addition, it provides issues cashier’s checks, safe deposit boxes rental, and other customary banking services. The company operates eleven full-service branches located in the cities of Auburn, Davis, Dixon, Fairfield, Rancho Cordova, Roseville, Sacramento, Vacaville, West Sacramento, Winters, and Woodland; a satellite banking office inside a retirement community in the city of Davis; a residential mortgage loan office in Davis; and a commercial loan office in the Contra Costa County city of Walnut Creek. First Northern Community Bancorp was founded in 1910 and is headquartered in Dixon, California.

About Byline Bancorp

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits. The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services. In addition, it offers financing solutions for equipment vendors and their end users; syndication services; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.