Critical Survey: FB Bancorp (NASDAQ:FBLA) & Dime Community Bancshares (NASDAQ:DCOM)

FB Bancorp (NASDAQ:FBLA) and Dime Community Bancshares (NASDAQ:DCOM) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Analyst Ratings

This is a breakdown of current recommendations and price targets for FB Bancorp and Dime Community Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FB Bancorp	1	0	0	0	1.00
Dime Community Bancshares	0	2	3	1	2.83

Dime Community Bancshares has a consensus price target of $39.75, suggesting a potential upside of 9.06%. Given Dime Community Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe Dime Community Bancshares is more favorable than FB Bancorp.

Profitability

This table compares FB Bancorp and Dime Community Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FB Bancorp	1.48%	0.97%	0.26%
Dime Community Bancshares	15.15%	9.12%	0.83%

Institutional and Insider Ownership

75.3% of Dime Community Bancshares shares are owned by institutional investors. 3.9% of FB Bancorp shares are owned by company insiders. Comparatively, 7.4% of Dime Community Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares FB Bancorp and Dime Community Bancshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FB Bancorp	$52.14 million	4.62	$1.25 million	$0.07	200.57
Dime Community Bancshares	$472.68 million	3.38	$110.68 million	$2.66	13.70

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

Volatility and Risk

FB Bancorp has a beta of -0.04, suggesting that its stock price is 104% less volatile than the S&P 500. Comparatively, Dime Community Bancshares has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Summary

Dime Community Bancshares beats FB Bancorp on 13 of the 15 factors compared between the two stocks.

About FB Bancorp

FB Bancorp Inc. operates as a bank holding company for Fidelity Bank. The Company, through its subsidiaries, provides deposit accounts, mortgages, home equity and consumer loans, credit and debit cards, online and mobile banking, investments and other financial services. FB Bancorp Inc. is based in New Orleans.

About Dime Community Bancshares

Dime Community Bancshares, Inc. operates as the holding company for Dime Community Bank that engages in the provision of various commercial banking and financial services. The company accepts time, savings, and demand deposits from the businesses, consumers, and local municipalities. It also offers commercial real estate loans; multi-family mortgage loans; residential mortgage loans; letters of credit; secured and unsecured commercial and consumer loans; lines of credit; home equity loans; and construction and land loans. In addition, the company invests in Federal Home Loan Bank, Federal National Mortgage Association, Government National Mortgage Association, and Federal Home Loan Mortgage Corporation mortgage-backed securities, collateralized mortgage obligations, and other asset backed securities; U.S. Treasury securities; New York state and local municipal obligations; U.S. government-sponsored enterprise securities; and corporate bonds. Further, it offers certificate of deposit account registry services and insured cash sweep programs; federal deposit insurance corporation insurance; merchant credit and debit card processing, automated teller machines, cash management services, lockbox processing, online banking services, remote deposit capture, safe deposit boxes, and individual retirement accounts; investment products and services through a third-party broker dealer; and title insurance broker services for small and medium sized businesses, and municipal and consumer relationships. The company was founded in 1910 and is headquartered in Hauppauge, New York.