Financial Survey: First Us Bancsh (NASDAQ:FUSB) versus Pinnacle Bankshares (OTCMKTS:PPBN)

First Us Bancsh (NASDAQ:FUSB) and Pinnacle Bankshares (OTCMKTS:PPBN) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Insider & Institutional Ownership

18.7% of First Us Bancsh shares are owned by institutional investors. Comparatively, 3.8% of Pinnacle Bankshares shares are owned by institutional investors. 12.1% of First Us Bancsh shares are owned by company insiders. Comparatively, 6.5% of Pinnacle Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

First Us Bancsh pays an annual dividend of $0.28 per share and has a dividend yield of 1.7%. Pinnacle Bankshares pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. First Us Bancsh pays out 26.9% of its earnings in the form of a dividend. Pinnacle Bankshares pays out 23.0% 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. First Us Bancsh has increased its dividend for 3 consecutive years. Pinnacle Bankshares is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings for First Us Bancsh and Pinnacle Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Us Bancsh	0	1	0	0	2.00
Pinnacle Bankshares	0	0	0	0	0.00

Risk & Volatility

First Us Bancsh has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500. Comparatively, Pinnacle Bankshares has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500.

Profitability

This table compares First Us Bancsh and Pinnacle Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Us Bancsh	9.65%	5.92%	0.53%
Pinnacle Bankshares	19.32%	13.24%	1.10%

Valuation and Earnings

This table compares First Us Bancsh and Pinnacle Bankshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Us Bancsh	$62.99 million	1.46	$5.99 million	$1.04	15.87
Pinnacle Bankshares	$59.05 million	2.02	$10.77 million	$5.21	10.58

Pinnacle Bankshares has lower revenue, but higher earnings than First Us Bancsh. Pinnacle Bankshares is trading at a lower price-to-earnings ratio than First Us Bancsh, indicating that it is currently the more affordable of the two stocks.

Summary

Pinnacle Bankshares beats First Us Bancsh on 9 of the 15 factors compared between the two stocks.

About First Us Bancsh

First US Bancshares, Inc. operates as the bank holding company for First US Bank that provides commercial banking products and services. The company offers non-interest-bearing demand deposits, savings accounts, NOW accounts, money market demand accounts, individual retirement accounts, and time deposits. Its loan products include commercial construction, land, and land development loans, including residential housing projects, commercial and industrial development, and for purchase and improvement of raw land for agricultural production; mortgage loans on one-to-four family and multi-family residential properties; real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers, and other commercial properties; commercial and industrial loans and leases; and secured and unsecured personal loans, including automobile loans, loans for household and personal purposes, and other direct consumer installment loans. The company also provides loans secured by collateral in form of personal property items. In addition, it provides letters of credit; and safe deposit box and remote deposit capture services. The company serves small-and medium-sized businesses, property managers, business executives, professionals, and other individuals. The company was formerly known as United Security Bancshares, Inc. and changed its name to First US Bancshares, Inc. in October 2016. First US Bancshares, Inc. was founded in 1952 and is headquartered in Birmingham, Alabama.

About Pinnacle Bankshares

Pinnacle Bankshares Corporation operates as the bank holding company for First National Bank that provides a range of commercial and retail banking products and services. The company accepts checking accounts, savings and time deposits, individual retirement accounts, certificates of deposit, and money market accounts. Its loan products include residential and commercial mortgage loans, home equity loans, consumer installment loans, agricultural loans, investment loans, small business loans, commercial lines of credit, and letters of credit. The company also provides credit cards; insurance products, including property and casualty, life, and health; investment and annuity products; and overdraft protection, merchant bankcard processing, cash management, remote deposit capture, night drop, safe deposit boxes, and notary services, as well as telephone, mobile, and online banking services. It operates branches in Amherst County, Bedford County, Campbell County, Pittsylvania County; and the city of Danville, Lynchburg and Charlottesville. The company was founded in 1908 and is headquartered in Altavista, Virginia.