Financial Analysis: FVCBankcorp (NASDAQ:FVCB) and S&T Bancorp (NASDAQ:STBA)

S&T Bancorp (NASDAQ:STBA) and FVCBankcorp (NASDAQ:FVCB) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for S&T Bancorp and FVCBankcorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
S&T Bancorp	0	1	0	0	2.00
FVCBankcorp	0	0	0	0	0.00

S&T Bancorp currently has a consensus target price of $41.00, suggesting a potential upside of 11.20%. Given S&T Bancorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe S&T Bancorp is more favorable than FVCBankcorp.

Profitability

This table compares S&T Bancorp and FVCBankcorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
S&T Bancorp	23.69%	10.25%	1.41%
FVCBankcorp	4.95%	7.29%	0.73%

Risk & Volatility

S&T Bancorp has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, FVCBankcorp has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.

Insider and Institutional Ownership

65.2% of S&T Bancorp shares are held by institutional investors. Comparatively, 43.6% of FVCBankcorp shares are held by institutional investors. 1.4% of S&T Bancorp shares are held by insiders. Comparatively, 14.0% of FVCBankcorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares S&T Bancorp and FVCBankcorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
S&T Bancorp	$392.73 million	3.59	$144.78 million	$3.51	10.50
FVCBankcorp	$44.48 million	4.84	$3.82 million	$0.27	43.81

S&T Bancorp has higher revenue and earnings than FVCBankcorp. S&T Bancorp is trading at a lower price-to-earnings ratio than FVCBankcorp, indicating that it is currently the more affordable of the two stocks.

Summary

S&T Bancorp beats FVCBankcorp on 10 of the 13 factors compared between the two stocks.

About S&T Bancorp

S&T Bancorp, Inc. is a bank holding company, which engages in the provision of consumer, commercial, and small business banking services. It operates through the following segments: Commercial Real Estate, Commercial and Industrial, Commercial Construction, Business Banking, Consumer Real Estate, and Other Consumer. The Commercial Real Estate segment includes both owner-occupied properties and investment properties for various purposes such as hotels, retail, multifamily and health care. The Commercial and Industrial segment focuses on the companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. The Commercial Construction segment refers to the finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. The Business Banking segment is made to small businesses that are standard, non-complex products evaluated through a streamlined credit approval process that has been designed to maximize efficiency while maintaining high credit quality standards. The Consumer Real Estate segment offers first and second liens such as 1-4 family residential mortgages, home equity loans and home equity lines of credit. The Other Consumer segment consists of individuals that may be secured by assets other than 1-4 family residences, as well as unsecured loans. The company was founded on March 17, 1983 and is headquartered in Indiana, PA.

About FVCBankcorp

FVCBankcorp, Inc. operates as the bank holding company for FVCbank that provides various banking products and services in Virginia. It offers deposit products, including interest and noninterest-bearing transaction accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial real estate loans; commercial construction loans; commercial loans for various business purposes, such as for working capital, equipment purchases, lines of credit, and government contract financing; small business administration loans; asset-based loans and accounts receivable financing; home equity loans; and consumer loans. In addition, it offers business and consumer credit cards; merchant services; business insurance products; and online banking, remote deposit, and mobile banking services. The company serves commercial businesses, nonprofit organizations, professional service entities, and their respective owners and employees located in the greater Washington, D.C., and Baltimore metropolitan areas. It operates branch offices in Arlington, Virginia; the independent city of Manassas, Virginia; Reston, Fairfax County, Virginia; Springfield, Fairfax County in Virginia; and Montgomery County and Baltimore in Maryland, and Washington, D.C. FVCBankcorp, Inc. was founded in 2007 and is headquartered in Fairfax, Virginia.