First head-to-head review of Corporate Financial Services (NASDAQ:FBIZ) and QCR (NASDAQ:QCRH)


First corporate financial services (NASDAQ: FBIZGet a rating) and QCR (NASDAQ:QCRHGet a rating) are both small-cap finance companies, but which stock is superior? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.

Risk and Volatility

First Business Financial Services has a beta of 0.75, which means its stock price is 25% less volatile than the S&P 500. Comparatively, QCR has a beta of 0.99, which means its stock price is 1 % less volatile than the S&P 500.

Dividends

First Business Financial Services pays an annual dividend of $0.79 per share and has a dividend yield of 2.2%. QCR pays an annual dividend of $0.24 per share and has a dividend yield of 0.4%. First Business Financial Services pays 18.0% of its profits as a dividend. QCR pays 4.0% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. First Business Financial Services has increased its dividend for 10 consecutive years. First Business Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

58.3% of First Business Financial Services shares are held by institutional investors. By comparison, 69.5% of QCR’s shares are held by institutional investors. 6.1% of the shares of First Business Financial Services are held by insiders of the company. By comparison, 3.8% of QCR’s shares are held by insiders of the company. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock will outperform the market over the long term.

Analyst Notes

This is a breakdown of the current recommendations for First Business Financial Services and QCR, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
First business financial services 0 1 1 0 2.50
QCR 0 0 2 0 3.00

First Business Financial Services currently has a consensus target price of $34.00, indicating a potential downside of 4.23%. QCR has a consensus target price of $71.50, indicating a potential upside of 18.28%. Given QCR’s stronger consensus rating and higher likely upside, analysts clearly believe QCR is more favorable than First Business Financial Services.

Valuation and benefits

This chart compares the gross revenue, earnings per share (EPS), and valuation of First Business Financial Services and QCR.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
First business financial services $124.10 million 2.43 $35.76 million $4.39 8.09
QCR $300.58 million 3.43 $98.90 million $6.06 9.98

QCR has higher revenue and profit than First Business Financial Services. First Business Financial Services trades at a lower price-to-earnings ratio than QCR, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on assets of First Business Financial Services and QCR.

Net margins Return on equity return on assets
First business financial services 29.50% 16.22% 1.40%
QCR 30.55% 16.62% 1.77%

Summary

QCR beats First Business Financial Services on 14 out of 17 factors compared between the two stocks.

About First Business Financial Services

(Get a rating)

First Business Financial Services, Inc. operates as a bank holding company for First Business Bank which provides commercial banking products and services to small and medium-sized businesses, business owners, executives, professionals and high net worth individuals. The Company offers deposit products, such as non-interest bearing transaction accounts, interest bearing transaction accounts, money market accounts, term deposits and certificates of deposit, as well as credit cards. It also offers lending products, including commercial real estate loans, commercial and industrial loans, small business administration loans and direct finance leases, as well as consumer and other loans comprising the value net of property, first and second mortgages and other personal loans for business and executive clients. The company offers commercial lending, asset-based lending, equipment financing, accounts receivable financing, vendor financing, floor plan financing, cash management services and employee retirement plans. company ; trust and estate administration, financial planning, investment management and private banking; and investment portfolio administration, asset-liability management, and asset-liability management process validation services for other financial institutions. First Business Financial Services, Inc. was founded in 1909 and is headquartered in Madison, Wisconsin.

About QCR

(Get a rating)

QCR Holdings, Inc., a multi-bank holding company, provides corporate and personal banking services, as well as trust and asset management services. Its deposit products include non-interest bearing demand, interest bearing demand, term and traded deposits. The Company also provides various commercial and retail and investment lending/leasing services to companies, partnerships, individuals and government agencies. Its loan portfolio includes loans to small and medium enterprises; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of plant, equipment and other purposes; commercial and residential real estate loans; and installment loans and other consumer loans, such as home improvement loans, home equity, motor vehicle and signature loans, as well as small personal lines of credit. In addition, the Company engages in the rental of machinery and equipment to commercial and industrial enterprises under direct leasing contracts; and the issuance of trust preferred securities. It serves the communities of Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield. The company was founded in 1993 and is headquartered in Moline, Illinois.



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