Univest Financial (NASDAQ:UVSP) and First Choice Bancorp (NASDAQ:FCBP) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Volatility and Risk

Univest Financial has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, First Choice Bancorp has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.

Profitability

This table compares Univest Financial and First Choice Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Univest Financial 20.67% 10.06% 1.27%
First Choice Bancorp 24.65% 10.59% 1.54%

Analyst Ratings

This is a breakdown of current ratings and price targets for Univest Financial and First Choice Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Univest Financial 0 0 0 0 N/A
First Choice Bancorp 0 0 1 0 3.00

First Choice Bancorp has a consensus target price of $31.00, indicating a potential upside of 37.29%. Given First Choice Bancorp’s higher probable upside, analysts clearly believe First Choice Bancorp is more favorable than Univest Financial.

Valuation and Earnings

This table compares Univest Financial and First Choice Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Univest Financial $250.66 million 3.09 $50.54 million $2.02 13.08
First Choice Bancorp $67.99 million 3.88 $15.13 million N/A N/A

Univest Financial has higher revenue and earnings than First Choice Bancorp.

Institutional and Insider Ownership

67.5% of Univest Financial shares are owned by institutional investors. Comparatively, 28.1% of First Choice Bancorp shares are owned by institutional investors. 2.6% of Univest Financial shares are owned 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.

Dividends

Univest Financial pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. First Choice Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 3.5%. Univest Financial pays out 39.6% of its earnings in the form of a dividend.

Summary

First Choice Bancorp beats Univest Financial on 8 of the 13 factors compared between the two stocks.

Univest Financial Company Profile

Univest Corporation of Pennsylvania offers banking products and services. The bank offers demand deposits and interest and non-interest bearing time and savings deposits. It's deposits include jumbo deposits and retail time deposits. It provides commercial and industrial loans, consumer loans, commercial real estate loans, and other loans and leases. The company offers consumer loans, including credit card loans, revolving credit plans, and automotive loans. The company offers commercial real estate loans for land development and on-site construction of industrial, commercial, residential, or farm buildings in the United States; real estate-backed residential loans; and commercial loans collateralized by real estate properties. The company offers domestic and foreign commercial and industrial loans. It offers loans for the purpose of financing agricultural production; loans which include planned and unplanned overdrafts, to governments in non-U.S. countries, to their official institutions, and to international and regional institutions. For 2017, the company has an asset value of 4.6 million USD. The company has generated a net income of 44,094 USD in December 31, 2017. Univest Corporation of Pennsylvania was founded in 1876 and is based in Souderton, Pennsylvania.

First Choice Bancorp Company Profile

First Choice Bancorp operates as the bank holding company for First Choice Bank that provides retail, personal, and commercial banking products and services to individuals, families, and small and medium-sized businesses. It offers interest and noninterest-bearing demand deposit, money market and savings accounts, remote deposit products, and time certificates of deposit; and loan products, such as construction and land development, residential real estate, commercial real estate, commercial and industrial, and small business administration (SBA) and consumer loans, as well as startup funds to entrepreneurs. The company also provides treasury management, online and mobile banking, commercial credit cards, debit cards, and automated teller machines, as well as bank-by-mail, courier, commercial cash vault, domestic and international wires, and international services. First Choice Bancorp operates through 11 branches located in Alhambra, Anaheim, Carlsbad, Cerritos, Chula Vista, Downtown Los Angeles, Pasadena, Rowland Heights, San Diego, and West Los Angeles, California and 1 loan production office located in Manhattan Beach, California. The company was founded in 2005 and is headquartered in Cerritos, California.

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