Head-To-Head Review: The First Bancshares (NASDAQ:FBMS) and DBS Group (OTCMKTS:DBSDY)

The First Bancshares (NASDAQ:FBMS) and DBS Group (OTCMKTS:DBSDY) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Valuation and Earnings

This table compares The First Bancshares and DBS Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
The First Bancshares $175.48 million 4.45 $43.74 million $2.79 13.33
DBS Group $15.04 billion 3.70 $4.69 billion $7.23 12.06

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

Volatility and Risk

The First Bancshares has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, DBS Group has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Dividends

The First Bancshares pays an annual dividend of $0.56 per share and has a dividend yield of 1.5%. DBS Group pays an annual dividend of $1.96 per share and has a dividend yield of 2.2%. The First Bancshares pays out 20.1% of its earnings in the form of a dividend. DBS Group pays out 27.1% 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. The First Bancshares has increased its dividend for 2 consecutive years.

Insider & Institutional Ownership

51.9% of The First Bancshares shares are owned by institutional investors. Comparatively, 0.9% of DBS Group shares are owned by institutional investors. 4.3% of The First Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares The First Bancshares and DBS Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
The First Bancshares 23.05% 7.70% 1.00%
DBS Group N/A N/A N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for The First Bancshares and DBS Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The First Bancshares 0 0 1 0 3.00
DBS Group 0 0 2 0 3.00

Summary

The First Bancshares beats DBS Group on 9 of the 15 factors compared between the two stocks.

The First Bancshares Company Profile

The First Bancshares, Inc. operates as the bank holding company for The First, A National Banking Association that provides general commercial and retail banking services. The company operates through three segments: Commercial/Retail Bank, Mortgage Banking Division, and Holding Company. It offers deposit services, including checking, NOW, and savings accounts; other time deposits, such as daily money market accounts and longer-term certificates of deposit; and individual retirement and health savings accounts. The company also provides commercial loans comprising secured and unsecured loans for working capital, business expansion, and purchase of equipment and machinery; consumer loans consisting of equity lines of credit, as well as secured and unsecured loans for financing automobiles, home improvements, education, and personal investments; and real estate construction and acquisition loans. In addition, it originates loans to purchase existing residential homes or construct new homes, and to refinance existing mortgages; and provides financial and wealth management services. Further, the company offers internet banking services, automated teller machines, voice response telephone inquiry services, commercial sweep accounts, cash management services, safe deposit boxes, merchant, mobile deposit, direct deposit of payroll and social security checks, automatic drafts for various accounts, and credit card services. It primarily serves small to medium-sized businesses, professional concerns, individuals, associations and organizations, and governmental authorities. As of December 31, 2020, the company operated 84 locations in Mississippi, Alabama, Florida, Georgia and Louisiana. The First Bancshares, Inc. was incorporated in 1995 and is headquartered in Hattiesburg, Mississippi.

DBS Group Company Profile

DBS Group Holdings Ltd provides financial products and services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. It operates through Consumer Banking/Wealth Management, Institutional Banking, Treasury Markets, and Others segments. The Consumer Banking/Wealth Management segment offers banking and related financial services, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products for individual customers. The Institutional Banking segment provides financial services and products for bank and non-bank financial institutions, government-linked companies, large corporates, and small and medium sized businesses. Its products and services comprise short-term working capital financing and specialized lending; cash management, trade finance, and securities and fiduciary services; treasury and markets products; and corporate finance and advisory banking, as well as capital markets solutions. The Treasury Markets segment is involved in structuring, market-making, and trading in a range of treasury products. The Others segment offers Islamic banking services. The company was founded in 1968 and is headquartered in Singapore.

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