Marlin Business Services (NASDAQ:MRLN) and First Choice Bancorp (NASDAQ:FCBP) Head to Head Analysis

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

Profitability

This table compares Marlin Business Services and First Choice Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marlin Business Services -1.20% 0.43% 0.07%
First Choice Bancorp 25.42% 9.47% 1.35%

Analyst Ratings

This is a breakdown of current ratings for Marlin Business Services and First Choice Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marlin Business Services 0 0 0 0 N/A
First Choice Bancorp 0 0 0 0 N/A

Marlin Business Services presently has a consensus price target of $16.00, suggesting a potential upside of 123.78%. Given Marlin Business Services’ higher possible upside, analysts plainly believe Marlin Business Services is more favorable than First Choice Bancorp.

Insider and Institutional Ownership

83.3% of Marlin Business Services shares are held by institutional investors. Comparatively, 33.1% of First Choice Bancorp shares are held by institutional investors. 5.3% of Marlin Business Services shares are held by insiders. Comparatively, 12.0% of First Choice Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Marlin Business Services has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, First Choice Bancorp has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Valuation and Earnings

This table compares Marlin Business Services and First Choice Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Marlin Business Services $166.66 million 0.51 $27.12 million N/A N/A
First Choice Bancorp $98.05 million 1.62 $27.85 million N/A N/A

First Choice Bancorp has lower revenue, but higher earnings than Marlin Business Services.

Dividends

Marlin Business Services pays an annual dividend of $0.56 per share and has a dividend yield of 7.8%. First Choice Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 7.4%. Marlin Business Services has increased its dividend for 1 consecutive years and First Choice Bancorp has increased its dividend for 1 consecutive years.

Summary

First Choice Bancorp beats Marlin Business Services on 8 of the 12 factors compared between the two stocks.

Marlin Business Services Company Profile

Marlin Business Services Corp. provides credit products and services to small and mid-sized businesses in the United States. The company's products and services include loans and leases for the acquisition of commercial equipment and working capital loans. It offers lease finance to approximately 100 categories of equipment. As of December 31, 2018, the company had a portfolio of approximately 94,000 equipment finance leases and loans. It also offers property reinsurance coverage for its financed equipment; and operates a commercial bank that issues certificates of deposit and money market demand accounts, as well as provides small business loans. The company provides its solutions through a network of independent commercial equipment dealers and national account programs, as well as through direct solicitation and relationships with select lease and loan brokers. Marlin Business Services Corp. was founded in 1997 and is based in Mount Laurel, New Jersey.

First Choice Bancorp Company Profile

First Choice Bancorp operates as the bank holding company for First Choice Bank that provides retail, personal, and commercial banking products and services to individuals, families, and small and medium-sized businesses. It offers interest and noninterest-bearing demand deposit, money market and savings accounts, remote deposit products, and time certificates of deposit; and loan products, such as construction and land development, residential real estate, commercial real estate, commercial and industrial, and small business administration (SBA) and consumer loans, as well as startup funds to entrepreneurs. The company also provides treasury management, online and mobile banking, commercial credit cards, debit cards, and automated teller machines, as well as bank-by-mail, courier, commercial cash vault, domestic and international wires, and international services. First Choice Bancorp operates through 11 branches located in Alhambra, Anaheim, Carlsbad, Cerritos, Chula Vista, Downtown Los Angeles, Pasadena, Rowland Heights, San Diego, and West Los Angeles, California and 1 loan production office located in Manhattan Beach, California. The company was founded in 2005 and is headquartered in Cerritos, California.

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