Analyzing First Guaranty Bancshares (FGBI) and SI Financial Group (SIFI)

First Guaranty Bancshares (NASDAQ:FGBI) and SI Financial Group (NASDAQ:SIFI) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Dividends

First Guaranty Bancshares pays an annual dividend of $0.64 per share and has a dividend yield of 2.8%. SI Financial Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.8%. First Guaranty Bancshares has raised its dividend for 2 consecutive years and SI Financial Group has raised its dividend for 2 consecutive years.

Valuation and Earnings

This table compares First Guaranty Bancshares and SI Financial Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Guaranty Bancshares $75.89 million 2.61 $11.75 million N/A N/A
SI Financial Group $65.15 million 2.51 $5.24 million N/A N/A

First Guaranty Bancshares has higher revenue and earnings than SI Financial Group.

Profitability

This table compares First Guaranty Bancshares and SI Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Guaranty Bancshares 16.99% 9.69% 0.80%
SI Financial Group 9.64% 6.21% 0.66%

Institutional & Insider Ownership

13.6% of First Guaranty Bancshares shares are owned by institutional investors. Comparatively, 56.4% of SI Financial Group shares are owned by institutional investors. 39.6% of First Guaranty Bancshares shares are owned by company insiders. Comparatively, 1.7% of SI Financial Group 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.

Analyst Recommendations

This is a summary of current ratings and target prices for First Guaranty Bancshares and SI Financial Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Guaranty Bancshares 0 1 0 0 2.00
SI Financial Group 0 0 0 0 N/A

First Guaranty Bancshares presently has a consensus target price of $28.00, suggesting a potential upside of 24.50%. Given First Guaranty Bancshares’ higher probable upside, equities analysts clearly believe First Guaranty Bancshares is more favorable than SI Financial Group.

Volatility and Risk

First Guaranty Bancshares has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, SI Financial Group has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Summary

First Guaranty Bancshares beats SI Financial Group on 10 of the 12 factors compared between the two stocks.

First Guaranty Bancshares Company Profile

First Guaranty Bancshares, Inc. operates as the holding company for First Guaranty Bank that provides commercial banking services to businesses, professionals, and individuals in Louisiana and Texas. It offers various deposit products, including personal and business checking, savings, money market, and demand accounts, as well as time deposits. The company also provides loans, such as non-farm non-residential loans secured by real estate, commercial and industrial loans, one- to four-family residential loans, construction and land development loans, agricultural loans, farmland loans, consumer and other loans, and multifamily loans. In addition, it offers a range of consumer services, including personal and commercial credit cards, remote deposit capture, safe deposit boxes, official checks, Internet banking, automated teller machines, online bill pay, mobile banking, and lockbox services. The company operates through 27 banking facilities located in market services areas of Hammond, Baton Rouge, Lafayette, Shreveport-Bossier City, Dallas-Fort Worth-Arlington, and Waco. First Guaranty Bancshares, Inc. was founded in 1934 and is headquartered in Hammond, Louisiana.

SI Financial Group Company Profile

SI Financial Group, Inc. operates as the holding company for Savings Institute Bank and Trust Company that provides various financial services to consumers and businesses. Its deposit products include noninterest-bearing demand accounts, such as checking accounts; and interest-bearing accounts, including NOW and money market accounts, regular savings accounts, and certificates of deposit. The company's loan portfolio comprises one- to four-family residential mortgage loans, multi-family and commercial real estate loans, commercial business loans, and construction and land loans. It also provides consumer loans that include home equity lines of credit; and loans secured by marketable securities, passbook or certificate accounts, motorcycles, automobiles, and recreational vehicles. In addition, the company offers trust services, which comprise fiduciary, investment management, and retirement services to individuals, partnerships, corporations, and institutions; and life insurance and annuities. It operates 24 full-service offices throughout Windham, New London, Tolland, Hartford, and Middlesex counties in Connecticut, as well as Newport and Washington counties in Rhode Island. The company was founded in 1842 and is headquartered in Willimantic, Connecticut.

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