Shore Bancshares (NASDAQ:SHBI) and 1st Capital Bank (OTCMKTS:FISB) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Shore Bancshares and 1st Capital Bank, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shore Bancshares 0 0 0 0 N/A
1st Capital Bank 0 0 0 0 N/A

Insider and Institutional Ownership

63.5% of Shore Bancshares shares are held by institutional investors. Comparatively, 4.6% of 1st Capital Bank shares are held by institutional investors. 1.9% of Shore Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Shore Bancshares has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, 1st Capital Bank has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Profitability

This table compares Shore Bancshares and 1st Capital Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shore Bancshares 23.21% 8.53% 1.08%
1st Capital Bank N/A N/A N/A

Earnings and Valuation

This table compares Shore Bancshares and 1st Capital Bank’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Shore Bancshares $69.79 million 2.99 $16.20 million $1.28 12.84
1st Capital Bank $20.92 million 3.99 $2.85 million N/A N/A

Shore Bancshares has higher revenue and earnings than 1st Capital Bank.

Summary

Shore Bancshares beats 1st Capital Bank on 8 of the 9 factors compared between the two stocks.

About Shore Bancshares

Shore Bancshares, Inc. operates as a bank holding company for the Shore United Bank that provides various commercial banking products and services to individuals, businesses, and other organizations. It offers various deposit products, including checking, savings, and money market accounts; and regular and IRA certificates of deposit, as well as CDARS programs and cash management services. The company also provides commercial loans, such as secured and unsecured loans, working capital loans, lines of credit, term loans, accounts receivable financing, real estate acquisition and development loans, construction loans, and letters of credit; residential real estate construction loans; residential mortgage loans; and loans to consumers comprising home equity, automobile, installment, home improvement, and personal lines of credit. In addition, it offers safe deposit boxes; debit and credit cards; direct deposit of payroll; merchant credit card clearing services; telephone, mobile, and Internet banking services; and automatic teller machine (ATM) services. Further, the company provides non-deposit products, such as mutual funds and annuities, and discount brokerage services; and trust, asset management, and financial planning services. It operates 21 full service branches, 23 ATMs, 2 loan production offices in Baltimore City, Baltimore County, Howard County, Kent County, Queen Anne's County, Caroline County, Talbot County, and Dorchester County in Maryland; Kent County, Delaware; and Accomack County, Virginia. Shore Bancshares, Inc. was founded in 1876 and is headquartered in Easton, Maryland.

About 1st Capital Bank

1st Capital Bank provides various banking products and services to businesses, professionals, real estate investors, family commercial entities, and individuals in the central coast region of California. Its deposit products include personal and business checking, savings, money market, and certificates of deposit accounts, as well as individual retirement accounts and health savings accounts. The company also offers business loans and lines of credit, such as long term loans for fixed-asset purchases and permanent working capital, asset-based lines of credit to cover accounts receivables and inventory, short term lines of credit to support short-term seasonal working capital needs or inventory purchases, equipment financing, and acquisition financing; and commercial real estate loans comprising term loans for the purchase or refinance of commercial and multi-family residential properties; and personal loans for business owners. In addition, it provides agriculture and wine industry lending products, including long or short term loans for crops, orchards, winery, and vineyard development; real estate purchases or debt refinancing; machinery and equipment purchase; and building improvements, as well as lines of credit for seasonal needs. Further, the company offers small business administration and government guaranteed lending solutions; debit cards; cash management services that include ACH origination, online wire transfer, check reconciliation, merchant card, and remote deposit capture services; and remote check scanning, remote branch deposit, online banking, telephone banking, courier, electronic bill payment, mobile banking, and remote wire request services, as well as invests in securities. It operates through full service branch offices in Monterey, Salinas, King City, and San Luis Obispo, California. The company was incorporated in 2006 and is based in Salinas, California.

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