Comparing Peoples Financial (OTCMKTS:PFBX) and USCB Financial (NASDAQ:USCB)

Peoples Financial (OTCMKTS:PFBX) and USCB Financial (NASDAQ:USCB) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.

Dividends

Peoples Financial pays an annual dividend of $0.36 per share and has a dividend yield of 1.9%. USCB Financial pays an annual dividend of $0.40 per share and has a dividend yield of 2.2%. Peoples Financial pays out 7.7% of its earnings in the form of a dividend. USCB Financial pays out 32.5% 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.

Volatility and Risk

Peoples Financial has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, USCB Financial has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Profitability

This table compares Peoples Financial and USCB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peoples Financial	54.68%	26.99%	2.51%
USCB Financial	17.14%	12.14%	0.99%

Earnings & Valuation

This table compares Peoples Financial and USCB Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peoples Financial	$39.52 million	2.25	$21.70 million	$4.66	4.13
USCB Financial	$75.39 million	4.82	$24.67 million	$1.23	14.89

USCB Financial has higher revenue and earnings than Peoples Financial. Peoples Financial is trading at a lower price-to-earnings ratio than USCB Financial, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Peoples Financial and USCB Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peoples Financial	0	0	0	0	0.00
USCB Financial	0	1	2	1	3.00

USCB Financial has a consensus target price of $17.50, suggesting a potential downside of 4.48%. Given USCB Financial’s stronger consensus rating and higher probable upside, analysts plainly believe USCB Financial is more favorable than Peoples Financial.

Insider and Institutional Ownership

32.8% of Peoples Financial shares are held by institutional investors. Comparatively, 61.3% of USCB Financial shares are held by institutional investors. 28.1% of Peoples Financial shares are held by company insiders. Comparatively, 48.5% of USCB Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

USCB Financial beats Peoples Financial on 12 of the 17 factors compared between the two stocks.

About Peoples Financial

Peoples Financial Corporation operates as the bank holding company for The Peoples Bank that provides banking, financial, and trust services to government entities, individuals, and small and commercial businesses in Mississippi. The company accepts various deposits, such as interest and non-interest-bearing checking accounts, savings accounts, certificates of deposit, and individual retirement accounts (IRAs). It offers business, commercial, real estate, construction, personal, and installment loans; and personal trust, agencies, and estate services, including living and testamentary trusts, executorships, guardianships, and conservatorships. In addition, the company provides self-directed IRAs; and escrow management, stock transfer, and bond paying agency accounts to corporate customers. Further, it offers other services consisting of safe deposit box rental, wire transfer, night drop facilities, collection, cash management, and Internet banking services. the company provides services to customers of various industries, such as seafood, retail, hospitality, hotel/motel, gaming, and construction. Peoples Financial Corporation was founded in 1896 and is headquartered in Biloxi, Mississippi.

About USCB Financial

USCB Financial Holdings, Inc. operates as the bank holding company for U.S. Century Bank that engages in the provision of various personal and business banking products and services in the United States. It accepts various deposit products, including commercial and consumer checking, money market deposit, savings, and time deposit accounts, as well as certificates of deposit. It also offers loan products, such as small business administration loans, yacht financing, residential and commercial real estate loans; commercial and industrial loans; foreign bank loans; and secured and unsecured consumer loans comprising personal loans, overdrafts, and deposit account collateralized loans. The company also offers lockbox, treasury, commercial payments, cash management, and online banking services, as well as provides title insurance policies for real estate transactions. USCB Financial Holdings, Inc. was founded in 2002 and is headquartered in Miami, Florida.