FVCBankcorp (NASDAQ:FVCB) vs. 1st Source (NASDAQ:SRCE) Head-To-Head Analysis

FVCBankcorp (NASDAQ:FVCB) and 1st Source (NASDAQ:SRCE) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Risk & Volatility

FVCBankcorp has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500. Comparatively, 1st Source has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.

Profitability

This table compares FVCBankcorp and 1st Source’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FVCBankcorp	4.95%	7.29%	0.73%
1st Source	23.01%	11.68%	1.48%

Valuation & Earnings

This table compares FVCBankcorp and 1st Source”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FVCBankcorp	$44.48 million	5.73	$3.82 million	$0.27	51.81
1st Source	$507.53 million	3.09	$124.93 million	$5.25	12.18

1st Source has higher revenue and earnings than FVCBankcorp. 1st Source is trading at a lower price-to-earnings ratio than FVCBankcorp, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

43.6% of FVCBankcorp shares are held by institutional investors. Comparatively, 74.5% of 1st Source shares are held by institutional investors. 14.0% of FVCBankcorp shares are held by insiders. Comparatively, 19.4% of 1st Source 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for FVCBankcorp and 1st Source, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FVCBankcorp	0	0	0	0	0.00
1st Source	0	2	0	0	2.00

1st Source has a consensus price target of $64.75, suggesting a potential upside of 1.30%. Given 1st Source’s stronger consensus rating and higher possible upside, analysts plainly believe 1st Source is more favorable than FVCBankcorp.

Summary

1st Source beats FVCBankcorp on 11 of the 13 factors compared between the two stocks.

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.

About 1st Source

1st Source Corporation operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients. Its consumer banking services include checking and savings accounts; certificates of deposit; individual retirement accounts; online and mobile banking products; consumer loans, real estate mortgage loans, and home equity lines of credit; and financial planning, financial literacy, and other consultative services, as well as debit and credit cards. The company also offers commercial, small business, agricultural, and real estate loans for general corporate purposes, including financing for industrial and commercial properties, equipment, inventories, accounts receivables, and renewable energy and acquisition financing; and commercial leasing, treasury management, and retirement planning services. In addition, it provides trust, investment, agency, and custodial services comprising administration of estates and personal trusts, as well as management of investment accounts for individuals, employee benefit plans, and charitable foundations. Further, the company offers equipment loan and lease products for construction equipment, new and pre-owned aircraft, auto and light trucks, and medium and heavy duty trucks; and finances construction equipment, aircrafts, medium and heavy duty trucks, step vans, vocational work trucks, motor coaches, shuttle buses, funeral cars, automobiles, and other equipment. Additionally, it provides corporate and personal property, casualty, and individual and group health and life insurance products and services. 1st Source Corporation was founded in 1863 and is headquartered in South Bend, Indiana.