Prime Meridian (OTCMKTS:PMHG) versus First US Bancshares (NASDAQ:FUSB) Financial Contrast

Earnings & Valuation

This table compares Prime Meridian and First US Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Prime Meridian	$41.82 million	2.44	$8.71 million	$2.46	12.60
First US Bancshares	$40.03 million	1.89	$8.48 million	$1.40	9.44

Prime Meridian has higher revenue and earnings than First US Bancshares. First US Bancshares is trading at a lower price-to-earnings ratio than Prime Meridian, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Prime Meridian has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, First US Bancshares has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Institutional & Insider Ownership

11.8% of Prime Meridian shares are held by institutional investors. Comparatively, 18.7% of First US Bancshares shares are held by institutional investors. 25.9% of Prime Meridian shares are held by company insiders. Comparatively, 13.3% of First US Bancshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Prime Meridian and First US Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prime Meridian	16.83%	9.76%	0.92%
First US Bancshares	14.25%	9.31%	0.81%

Dividends

Prime Meridian pays an annual dividend of $0.25 per share and has a dividend yield of 0.8%. First US Bancshares pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. Prime Meridian pays out 10.2% of its earnings in the form of a dividend. First US Bancshares pays out 20.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Prime Meridian beats First US Bancshares on 10 of the 13 factors compared between the two stocks.

About Prime Meridian

Prime Meridian Holding Company operates as the bank holding company for Prime Meridian Bank that provides various consumer and commercial banking services to individuals and businesses. The company accepts various deposits, such as checking, money market, savings, term certificate of deposit, demand interest-bearing and noninterest-bearing, health savings, NOW, and escrow accounts, as well as retirement savings plans and time deposits. Its loan products include commercial real estate, residential real estate and home equity, small business administration, construction, equipment, and commercial loans; and consumer and other loans comprising financing of automobiles, boats, and recreational vehicles, as well as issues standby letters and business lines of credit. The company also offers debit and credit cards; mobile banking, remote and mobile deposit, Apple Pay, bank-to-bank transfer, and online banking services; and safe deposit, wire transfer, foreign exchange, direct deposits, notary, night depository, official checks, domestic collections, bank drafts, automated teller services, drive-in tellers, merchant card, and banking by mail services, as well as invests in securities. Prime Meridian Holding Company was founded in 2008 and is headquartered in Tallahassee, Florida.

About First US Bancshares

First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services. The company offers non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include commercial construction, land, and land development loans, including residential housing projects, commercial and industrial development, and for purchase and improvement of raw land for agricultural production; mortgage loans on one-to-four family and multi-family residential properties; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, and other commercial properties; commercial and industrial loans and leases; and secured and unsecured personal loans, including automobile loans, loans for household and personal purposes, and other direct consumer installment loans. The company also provides loans secured by collateral in form of personal property items. In addition, it provides letters of credit; and safe deposit box and remote deposit capture services. The company serves small-and medium-sized businesses, property managers, business executives, professionals, and other individuals. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is headquartered in Birmingham, Alabama.