First business financial services (NASDAQ: FBIZ – Get a rating) and First Interstate BancSystem (NASDAQ: FIBK – Get a rating) are both finance companies, but which stock is superior? We’ll compare the two companies based on valuation strength, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.
This is a summary of recent ratings and target prices for First Business Financial Services and First Interstate BancSystem, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|First business financial services||0||1||1||0||2.50|
|First interstate banking system||0||2||1||0||2.33|
First Business Financial Services currently has a consensus price target of $34.00, indicating a potential downside of 1.93%. First Interstate BancSystem has a consensus price target of $45.00, indicating a potential upside of 38.38%. Given the higher possible upside of First Interstate BancSystem, analysts clearly believe that First Interstate BancSystem is more favorable than First Business Financial Services.
Insider and Institutional Ownership
58.3% of First Business Financial Services shares are held by institutional investors. By comparison, 66.8% of First Interstate BancSystem’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, 22.0% of the shares of First Interstate BancSystem are held by insiders of the company. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock is poised for long-term growth.
Volatility and risk
First Business Financial Services has a beta of 0.81, meaning its stock price is 19% less volatile than the S&P 500. In comparison, First Interstate BancSystem has a beta of 1.03, meaning its stock price is 3% more volatile than the S&P 500. .
Benefits and evaluation
This chart compares the revenue, earnings per share, and valuation of First Business Financial Services and First Interstate BancSystem.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|First business financial services||$124.10 million||2.36||$35.76 million||$4.05||8.56|
|First interstate banking system||$656.00 million||3.08||$192.10 million||$1.92||16.94|
First Interstate BancSystem has higher revenue and profit than First Business Financial Services. First Business Financial Services trades at a lower price-to-earnings ratio than First Interstate BancSystem, indicating that it is currently the more affordable of the two stocks.
This table compares the net margins, return on equity and return on assets of First Business Financial Services and First Interstate BancSystem.
|Net margins||Return on equity||return on assets|
|First business financial services||28.81%||16.00%||1.33%|
|First interstate banking system||29.28%||10.07%||1.04%|
First Business Financial Services pays an annual dividend of $0.79 per share and has a dividend yield of 2.3%. First Interstate BancSystem pays an annual dividend of $1.64 per share and has a dividend yield of 5.0%. First Business Financial Services pays 19.5% of its profits as a dividend. First Interstate BancSystem pays 85.4% of its earnings as dividends, suggesting it may not have enough earnings to cover its dividend payment in the future. First Business Financial Services has increased its dividend for 10 consecutive years and First Interstate BancSystem has increased its dividend for 9 consecutive years.
First Interstate BancSystem beats First Business Financial Services on 10 out of 16 factors compared between the two stocks.
About First Business Financial Services (Get a rating)
First Business Financial Services, Inc. operates as a banking 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. business ; 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 First Interstate BancSystem (Get a rating)
First Interstate BancSystem, Inc. operates as a bank holding company for First Interstate Bank which provides a range of banking products and services in the United States. It offers various traditional deposit products, including checks, savings deposits and term deposits; and repurchase agreements primarily for commercial and municipal depositors. The Company also offers real estate loans including commercial real estate, construction, residential, agricultural and other real estate loans; consumer loans including direct personal loans, credit card loans and lines of credit and indirect loans; variable and fixed rate commercial loans for small and medium sized manufacturing, wholesale, retail and service businesses for working capital needs and business expansion; and agricultural loans. Additionally, it provides a range of trust, employee benefits, investment management, insurance, agency and custodial services to individuals, businesses and non-profit organizations. In addition, the Company provides marketing, credit review, loan servicing, credit card issuance and servicing, mortgage sales and servicing, indirect purchase and processing of consumer loans, loan collection and other operational services, as well as online and mobile banking. It serves individuals, businesses, municipalities, and other entities in a variety of industries, including agriculture, construction, education, energy, government services, healthcare, hospitality, housing, l mining, professional services, real estate development, retail, technology, tourism and wholesale. Trade. As of December 31, 2021, it operated 147 banking offices, including individual drive-through facilities in communities in Idaho, Montana, Oregon, South Dakota, Washington, and Wyoming. The company was incorporated in 1971 and is based in Billings, Montana.
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