Critical Survey: 1st Constitution Bancorp (FCCY) versus Its Competitors

1st Constitution Bancorp (NASDAQ: FCCY) is one of 201 publicly-traded companies in the “Commercial Banks” industry, but how does it contrast to its rivals? We will compare 1st Constitution Bancorp to similar companies based on the strength of its dividends, valuation, earnings, profitability, institutional ownership, analyst recommendations and risk.

Profitability

This table compares 1st Constitution Bancorp and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
1st Constitution Bancorp 16.78% 7.79% 0.80%
1st Constitution Bancorp Competitors 20.60% 8.71% 0.93%

Earnings & Valuation

This table compares 1st Constitution Bancorp and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
1st Constitution Bancorp $47.75 million $9.28 million 18.32
1st Constitution Bancorp Competitors $338.81 million $71.86 million 22.39

1st Constitution Bancorp’s rivals have higher revenue and earnings than 1st Constitution Bancorp. 1st Constitution Bancorp is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

1st Constitution Bancorp has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, 1st Constitution Bancorp’s rivals have a beta of 0.74, suggesting that their average stock price is 26% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for 1st Constitution Bancorp and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
1st Constitution Bancorp 0 1 0 0 2.00
1st Constitution Bancorp Competitors 433 3079 2465 83 2.36

1st Constitution Bancorp currently has a consensus price target of $18.00, indicating a potential downside of 2.70%. As a group, “Commercial Banks” companies have a potential upside of 3.07%. Given 1st Constitution Bancorp’s rivals stronger consensus rating and higher possible upside, analysts plainly believe 1st Constitution Bancorp has less favorable growth aspects than its rivals.

Dividends

1st Constitution Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.3%. 1st Constitution Bancorp pays out 23.8% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.2% of their earnings in the form of a dividend.

Insider and Institutional Ownership

27.9% of 1st Constitution Bancorp shares are held by institutional investors. Comparatively, 46.9% of shares of all “Commercial Banks” companies are held by institutional investors. 14.5% of 1st Constitution Bancorp shares are held by insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

1st Constitution Bancorp rivals beat 1st Constitution Bancorp on 13 of the 15 factors compared.

1st Constitution Bancorp Company Profile

1st Constitution Bancorp is the bank holding company for 1st Constitution Bank (the Bank). The Bank is a commercial bank, which is engaged in the business of commercial and retail banking. The Company operates through the Community Banking segment. The Community Banking segment consists of construction, commercial, retail and mortgage banking operations. As a community bank, the Bank offers a range of services (including demand, savings and time deposits and commercial and consumer/installment loans) to individuals, small businesses and not-for-profit organizations principally in the Fort Lee area of Bergen County and in Middlesex, Mercer, Somerset and Monmouth Counties of New Jersey. The Bank’s Mortgage Warehouse Funding Group offers revolving lines of credit that are available to licensed mortgage banking companies (the Warehouse Line of Credit). The Bank’s investment activities are classified as available for sale and held to maturity securities.

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