Analyzing Fifth District Bancorp (NASDAQ:FDSB) and Coastal Financial (NASDAQ:CCB)

Coastal Financial (NASDAQ:CCB) and Fifth District Bancorp (NASDAQ:FDSB) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

59.2% of Coastal Financial shares are owned by institutional investors. 13.5% of Coastal Financial shares are owned by insiders. Comparatively, 8.6% of Fifth District Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Coastal Financial and Fifth District Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coastal Financial	-0.53%	-0.80%	-0.08%
Fifth District Bancorp	6.97%	1.27%	0.31%

Volatility and Risk

Coastal Financial has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Fifth District Bancorp has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Coastal Financial and Fifth District Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coastal Financial	2	0	5	0	2.43
Fifth District Bancorp	0	1	0	0	2.00

Coastal Financial presently has a consensus price target of $91.33, suggesting a potential upside of 124.19%. Given Coastal Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Coastal Financial is more favorable than Fifth District Bancorp.

Earnings and Valuation

This table compares Coastal Financial and Fifth District Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coastal Financial	$661.22 million	0.94	$46.99 million	($0.28)	-145.50
Fifth District Bancorp	$26.49 million	3.43	$4.09 million	$0.34	50.94

Coastal Financial has higher revenue and earnings than Fifth District Bancorp. Coastal Financial is trading at a lower price-to-earnings ratio than Fifth District Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Coastal Financial beats Fifth District Bancorp on 8 of the 14 factors compared between the two stocks.

About Coastal Financial

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small and medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company also offers commercial and industrial loans, such as term loans, commercial lines of credit, capital call lines working capital loans, equipment financing, borrowing base loans, small business administration loans, and other loan products; owner and non-owner-occupied real estate loans, and multi-family residential loans; construction, land, and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as personal lines of credit, including overdraft protection. In addition, it provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services; and debit cards. Further, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as Banking as a Service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their customers banking services. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.

About Fifth District Bancorp

Fifth District Bancorp, Inc. is the holding company for Fifth District Savings Bank which provide all banking services. Fifth District Bancorp, Inc. is based in NEW ORLEANS.