Analyzing 1st Constitution Bancorp (FCCY) and Its Peers

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

Profitability

This table compares 1st Constitution Bancorp and its peers’ 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 20.49% 8.67% 0.92%

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 35.4% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares 1st Constitution Bancorp and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
1st Constitution Bancorp $47.75 million $9.28 million 18.42
1st Constitution Bancorp Competitors $338.81 million $71.86 million 21.68

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

Volatility and Risk

1st Constitution Bancorp has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500. Comparatively, 1st Constitution Bancorp’s peers have a beta of 0.74, indicating that their average stock price is 26% less volatile than the S&P 500.

Insider & Institutional Ownership

27.9% of 1st Constitution Bancorp shares are owned by institutional investors. Comparatively, 46.9% of shares of all “Commercial Banks” companies are owned by institutional investors. 14.5% of 1st Constitution Bancorp shares are owned by insiders. Comparatively, 11.8% of shares of all “Commercial Banks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for 1st Constitution Bancorp and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
1st Constitution Bancorp 0 1 0 0 2.00
1st Constitution Bancorp Competitors 507 3087 2473 87 2.35

1st Constitution Bancorp currently has a consensus target price of $18.00, suggesting a potential downside of 3.23%. As a group, “Commercial Banks” companies have a potential upside of 2.55%. Given 1st Constitution Bancorp’s peers stronger consensus rating and higher probable upside, analysts plainly believe 1st Constitution Bancorp has less favorable growth aspects than its peers.

Summary

1st Constitution Bancorp peers 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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