Contrasting First Northern Community Bancorp (OTCMKTS:FNRN) and United Security Bancshares (NASDAQ:UBFO)

United Security Bancshares (NASDAQ:UBFO) and First Northern Community Bancorp (OTCMKTS:FNRN) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Earnings and Valuation

This table compares United Security Bancshares and First Northern Community Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Security Bancshares	$65.46 million	2.78	$14.78 million	$0.67	15.45
First Northern Community Bancorp	$84.67 million	2.50	$20.03 million	$1.31	10.27

First Northern Community Bancorp has higher revenue and earnings than United Security Bancshares. First Northern Community Bancorp is trading at a lower price-to-earnings ratio than United Security Bancshares, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

United Security Bancshares has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, First Northern Community Bancorp has a beta of 0.08, indicating that its share price is 92% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for United Security Bancshares and First Northern Community Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Security Bancshares	0	0	1	0	3.00
First Northern Community Bancorp	0	0	0	0	0.00

Profitability

This table compares United Security Bancshares and First Northern Community Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Security Bancshares	17.51%	8.50%	0.94%
First Northern Community Bancorp	24.07%	10.97%	1.11%

Insider and Institutional Ownership

30.9% of United Security Bancshares shares are held by institutional investors. Comparatively, 17.9% of First Northern Community Bancorp shares are held by institutional investors. 22.1% of United Security Bancshares shares are held by insiders. Comparatively, 11.8% of First Northern Community Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

United Security Bancshares beats First Northern Community Bancorp on 7 of the 13 factors compared between the two stocks.

About United Security Bancshares

United Security Bancshares operates as the bank holding company for United Security Bank, a state-chartered bank that provides a range of commercial banking services to the business and professional community, and individuals in California. The company accepts various deposit products, including personal and business checking accounts, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit. It also provides real estate mortgage, commercial and industrial, real estate construction and development, and consumer loans, as well as agricultural, installment, and student loans. In addition, the company offers online and mobile banking, safe deposit boxes, wire transfers, payroll direct deposit, cashier's check, cash management, and foreign draft services, as well as interactive teller machines; and person-to-person and bank-to-bank transfers for consumer customers. United Security Bancshares was founded in 1987 and is headquartered in Fresno, California.

About First Northern Community Bancorp

First Northern Community Bancorp operates as the bank holding company for First Northern Bank of Dixon that provides commercial banking products and services to individuals, and small and medium sized businesses. The company accepts demand deposits, interest-bearing transaction deposits, savings and money market deposit accounts, and time deposits. It also offers commercial, commercial real estate, agriculture, residential mortgage, residential construction, and consumer loans. In addition, the company provides debit and credit cards; investment and brokerage services; alternative investment products, and fiduciary and other financial services; and equipment leasing, merchant card processing, payroll, and international banking services through third parties. Further, it offers cashier's checks, safe deposit boxes, and other customary banking services. The company operates branches located in the cities of Auburn, Colusa, Davis, Dixon, Fairfield, Orland, Rancho Cordova, Roseville, Sacramento, Vacaville, West Sacramento, Winters, Willows, and Woodland; satellite banking office inside a retirement community in the city of Davis; residential mortgage loan office in Davis; and commercial loan office in the Contra Costa County city of Walnut Creek. First Northern Community Bancorp was founded in 1910 and is headquartered in Dixon, California.