Reviewing First National (NASDAQ:FXNC) and California BanCorp (NASDAQ:CALB)

First National (NASDAQ:FXNC) and California BanCorp (NASDAQ:CALB) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

33.9% of First National shares are held by institutional investors. Comparatively, 59.5% of California BanCorp shares are held by institutional investors. 16.5% of First National shares are held by company insiders. Comparatively, 10.8% of California BanCorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares First National and California BanCorp’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First National	$69.50 million	1.42	$9.62 million	$1.43	10.98
California BanCorp	$114.08 million	1.65	$21.63 million	$2.37	9.35

California BanCorp has higher revenue and earnings than First National. California BanCorp is trading at a lower price-to-earnings ratio than First National, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares First National and California BanCorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First National	12.21%	7.83%	0.64%
California BanCorp	17.16%	10.90%	1.06%

Analyst Recommendations

This is a breakdown of current ratings and target prices for First National and California BanCorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First National	0	1	0	0	2.00
California BanCorp	0	0	4	0	3.00

First National currently has a consensus target price of $19.00, indicating a potential upside of 21.02%. California BanCorp has a consensus target price of $26.25, indicating a potential upside of 18.46%. Given First National’s higher probable upside, equities research analysts plainly believe First National is more favorable than California BanCorp.

Volatility and Risk

First National has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, California BanCorp has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.

Summary

California BanCorp beats First National on 11 of the 14 factors compared between the two stocks.

About First National

First National Corporation operates as the bank holding company for First Bank that provides various commercial banking services to small and medium-sized businesses, individuals, estates, local governmental entities, and non-profit organizations in Virginia. The company's deposit products include checking, savings, money market, and individual retirement accounts, as well as certificates of deposit and treasury management solutions. Its loan products comprise construction loans, including residential, land acquisition, and development loans; 1-4 family residential real estate loans; and commercial real estate loans that are secured by commercial real estate, including multi-family residential buildings, office and retail buildings, hotels, industrial buildings, and religious facilities. In addition, the company's loan products include commercial and industrial loans that are secured by business assets, such as accounts receivable, equipment, and inventory; home equity loans; and secured and unsecured consumer loans, such as lines of credit, automobile loans, deposit account loans, and installment and demand loans. Further, it provides wealth management services, including estate planning, investment management of assets, trustee under an agreement, trustee under a will, and estate settlement. Additionally, the company offers title insurance and investment services; and holds other real estate owned and office sites, as well as provides internet and mobile banking, remote deposit capture, and other traditional banking services. First National Corporation was founded in 1907 and is headquartered in Strasburg, Virginia.

About California BanCorp

California BanCorp operates as the bank holding company for California Bank of Commerce that provides commercial banking services to businesses and professionals in California. It accepts various deposit products, including commercial checking, savings, and money market accounts, as well as certificates of deposit. The company also offers asset-based lending loans; commercial letters of credit; construction and development loans; real estate loans, such as commercial real estate loans and other loans; small business administration (SBA) loans, including SBA 7(a) and SBA 504 loans; consumer loans, such as secured and unsecured installment loans, and revolving lines of credit; and commercial and industrial loans, including term loans, working capital, accounts receivable and inventory financing, and other business loans to the dental and veterinary industries, contractors, and emerging companies. In addition, it provides foreign exchange, treasury and cash management, and online and mobile banking services. California BanCorp was founded in 2007 and is headquartered in Oakland, California.