Comparing 1st Source (NASDAQ:SRCE) & FVCBankcorp (NASDAQ:FVCB)

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

Institutional and Insider Ownership

74.4% of 1st Source shares are held by institutional investors. Comparatively, 43.6% of FVCBankcorp shares are held by institutional investors. 19.3% of 1st Source shares are held by insiders. Comparatively, 14.0% of FVCBankcorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
1st Source	$380.68 million	4.13	$124.93 million	$5.25	12.22
FVCBankcorp	$93.25 million	2.71	$3.82 million	$0.27	51.48

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.

Analyst Ratings

This is a summary of recent ratings and price targets for 1st Source and FVCBankcorp, as reported by MarketBeat.

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

1st Source currently has a consensus target price of $64.75, indicating a potential upside of 0.90%. Given 1st Source’s stronger consensus rating and higher probable upside, equities research analysts clearly believe 1st Source is more favorable than FVCBankcorp.

Profitability

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

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

Volatility & Risk

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

Summary

1st Source beats FVCBankcorp on 12 of the 13 factors compared between the two stocks.

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.

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.