First Business Financial Services (NASDAQ:FBIZ) & MVB Financial (NASDAQ:MVBF) Financial Analysis

MVB Financial (NASDAQ:MVBF) and First Business Financial Services (NASDAQ:FBIZ) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Profitability

This table compares MVB Financial and First Business Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MVB Financial	8.49%	6.29%	0.55%
First Business Financial Services	15.46%	13.70%	1.10%

Volatility & Risk

MVB Financial has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, First Business Financial Services has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Institutional & Insider Ownership

52.7% of MVB Financial shares are held by institutional investors. Comparatively, 60.1% of First Business Financial Services shares are held by institutional investors. 11.1% of MVB Financial shares are held by insiders. Comparatively, 6.3% of First Business Financial Services shares are held 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.

Earnings & Valuation

This table compares MVB Financial and First Business Financial Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MVB Financial	$209.53 million	1.38	$31.23 million	$1.42	15.70
First Business Financial Services	$148.94 million	2.81	$37.03 million	$4.66	10.83

First Business Financial Services has lower revenue, but higher earnings than MVB Financial. First Business Financial Services is trading at a lower price-to-earnings ratio than MVB Financial, indicating that it is currently the more affordable of the two stocks.

Dividends

MVB Financial pays an annual dividend of $0.68 per share and has a dividend yield of 3.0%. First Business Financial Services pays an annual dividend of $1.00 per share and has a dividend yield of 2.0%. MVB Financial pays out 47.9% of its earnings in the form of a dividend. First Business Financial Services pays out 21.5% 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 Business Financial Services has increased its dividend for 12 consecutive years.

Analyst Recommendations

This is a breakdown of current recommendations for MVB Financial and First Business Financial Services, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MVB Financial	0	1	2	0	2.67
First Business Financial Services	0	0	4	0	3.00

MVB Financial currently has a consensus price target of $25.00, suggesting a potential upside of 12.11%. First Business Financial Services has a consensus price target of $50.00, suggesting a potential downside of 0.95%. Given MVB Financial’s higher probable upside, research analysts plainly believe MVB Financial is more favorable than First Business Financial Services.

Summary

First Business Financial Services beats MVB Financial on 11 of the 17 factors compared between the two stocks.

About MVB Financial

MVB Financial Corp. operates as bank holding company for MVB Bank, Inc that provides financial services to individuals and corporate clients. The company operates through three segments: CoRe Banking, Mortgage Banking, and The Financial Holding Company. It offers various demand deposit accounts, savings accounts, money market accounts, and certificates of deposit; and commercial, consumer, and real estate mortgage loans, as well as lines of credit. The company also provides debit cards; cashier's checks; safe deposit rental facilities; and non-deposit investment services, as well as financial technology (Fintech) banking services. In addition, it offers fintech solutions for the gaming, payments, banking-as-a-service, and digital asset sectors; fraud prevention services for merchants, credit agencies, Fintech companies, and other vendors; and digital products and web and mobile applications for forward-thinking community banks, credit unions, digital banks, and Fintech companies. It operates full-service branches in West Virginia and Virginia. MVB Financial Corp. was founded in 1997 and is based in Fairmont, West Virginia.

About First Business Financial Services

First Business Financial Services, Inc. operates as the bank holding company for First Business Bank that provides commercial banking products and services for small and medium-sized businesses, business owners, executives, professionals, and high net worth individuals in Wisconsin, Kansas, and Missouri. The company offers real estate lending, commercial and industrial lending, asset-based lending, accounts receivable financing, equipment financing loans and leases, floorplan financing, vendor financing, small business administration lending and servicing, treasury management solutions, and company retirement services. It also provides private wealth management for individuals, including creating and executing asset allocation strategies, trust and estate administration, financial planning, investment management, and access to brokerage and custody-only services. In addition, the company offers bank consulting consisting of investment portfolio administrative and asset liability management services, and commercial deposit accounts. The company was founded in 1909 and is headquartered in Madison, Wisconsin.