1st Constitution Bancorp (NASDAQ:FCCY) and Community Investors Bancorp (OTCMKTS:CIBN) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Earnings and Valuation

This table compares 1st Constitution Bancorp and Community Investors Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
1st Constitution Bancorp $59.39 million 2.74 $12.05 million $1.56 12.08
Community Investors Bancorp $7.61 million 1.84 $460,000.00 N/A N/A

1st Constitution Bancorp has higher revenue and earnings than Community Investors Bancorp.

Insider and Institutional Ownership

34.4% of 1st Constitution Bancorp shares are owned by institutional investors. 14.3% of 1st Constitution Bancorp shares are owned by company insiders. Comparatively, 15.8% of Community Investors Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

1st Constitution Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 1.6%. Community Investors Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 2.0%. 1st Constitution Bancorp pays out 19.2% of its earnings in the form of a dividend. 1st Constitution Bancorp has increased its dividend for 2 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and target prices for 1st Constitution Bancorp and Community Investors Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
1st Constitution Bancorp 0 0 1 0 3.00
Community Investors Bancorp 0 0 0 0 N/A

1st Constitution Bancorp currently has a consensus price target of $21.50, suggesting a potential upside of 14.06%. Given 1st Constitution Bancorp’s higher probable upside, research analysts clearly believe 1st Constitution Bancorp is more favorable than Community Investors Bancorp.

Profitability

This table compares 1st Constitution Bancorp and Community Investors Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
1st Constitution Bancorp 20.23% 10.98% 1.15%
Community Investors Bancorp N/A N/A N/A

Risk and Volatility

1st Constitution Bancorp has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500. Comparatively, Community Investors Bancorp has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500.

Summary

1st Constitution Bancorp beats Community Investors Bancorp on 11 of the 15 factors compared between the two stocks.

About 1st Constitution Bancorp

1st Constitution Bancorp operates as the bank holding company for 1st Constitution Bank that provides commercial and retail banking services in the central, coastal, and northeastern areas of New Jersey. The company offers deposit products, including interest bearing demand deposits, such as interest-bearing checking accounts, money market accounts, and negotiable order of withdrawal accounts; and non-interest bearing demand, savings, and time deposits, as well as certificates of deposit. It also provides commercial loans, including term loans, lines of credit, and loans secured by equipment and receivables; secured and unsecured short-to-medium term commercial loans to businesses for working capital, business expansion, and the purchase of equipment and machinery; and construction loans to real estate developers for the acquisition, development, and construction of residential and commercial properties. In addition, the company offers residential first mortgage loans secured by owner-occupied property; construction loans; reverse mortgages; second mortgage home improvement loans; home equity lines of credit; and non-residential consumer loans for automobiles, recreation vehicles, and boats, as well as secured and unsecured personal loans, and deposit account secured loans. It serves corporations, individuals, partnerships, and other community organizations, as well as small businesses and not-for-profit organizations. As of December 31, 2018, the company operated through 19 additional branch offices in Asbury Park, Cranbury, Fair Haven, Fort Lee, Freehold, Hamilton Square, Hightstown, Hillsborough, Hopewell, Jamesburg, Lawrenceville, Little Silver, Neptune City, Perth Amboy, Plainsboro, Skillman, Princeton, Rumson, and Shrewsbury, New Jersey; and 2 residential mortgage loan production offices in Forked River and Jersey City, New Jersey. 1st Constitution Bancorp was founded in 1989 and is based in Cranbury, New Jersey.

About Community Investors Bancorp

Community Investors Bancorp, Inc. operates as the bank holding company for First Federal Community Bank of Bucyrus that provides personal and commercial banking services in Ohio. It accepts checking and savings accounts, individual retirement accounts, time deposits, and health savings accounts. The company offers consumer loans, including personal, auto, home equity, and home improvement loans; commercial loans, such as real estate, term, business expansion, construction, and SBA loans; and mortgages. It also provides Internet and telephone banking, debit cards, night depositary and shareholder services, merchant services, and financial planning and investment advice services. The company was founded in 1888 and is based in Bucyrus, Ohio.

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