Financial Comparison: Simmons First National (NASDAQ:SFNC) versus Fifth District Bancorp (NASDAQ:FDSB)

Simmons First National (NASDAQ:SFNC) and Fifth District Bancorp (NASDAQ:FDSB) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Risk and Volatility

Simmons First National has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Fifth District Bancorp has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.

Insider and Institutional Ownership

27.6% of Simmons First National shares are owned by institutional investors. 0.8% of Simmons First National shares are owned by company insiders. Comparatively, 8.6% of Fifth District Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Simmons First National and Fifth District Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Simmons First National	-25.44%	7.81%	1.07%
Fifth District Bancorp	16.35%	3.37%	0.82%

Analyst Ratings

This is a breakdown of current ratings and price targets for Simmons First National and Fifth District Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Simmons First National	0	5	2	2	2.67
Fifth District Bancorp	1	0	0	0	1.00

Simmons First National presently has a consensus target price of $22.00, indicating a potential upside of 5.67%. Given Simmons First National’s stronger consensus rating and higher probable upside, equities analysts clearly believe Simmons First National is more favorable than Fifth District Bancorp.

Valuation and Earnings

This table compares Simmons First National and Fifth District Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Simmons First National	$125.62 million	24.04	-$397.55 million	($2.56)	-8.13
Fifth District Bancorp	$26.49 million	2.97	$4.09 million	$0.87	17.19

Fifth District Bancorp has lower revenue, but higher earnings than Simmons First National. Simmons First National is trading at a lower price-to-earnings ratio than Fifth District Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Simmons First National beats Fifth District Bancorp on 10 of the 15 factors compared between the two stocks.

About Simmons First National

Simmons First National Corporation operates as the holding company for Simmons Bank that provides banking and other financial products and services to individuals and businesses. The company offers checking, savings, and time deposits; consumer, real estate, and commercial loans; agricultural finance, equipment, and small business administration lending; trust and fiduciary services; credit cards; investment management products; treasury management; insurance products; and securities and investment services. It also provides ATM services; Internet and mobile banking platforms; overdraft facilities; and safe deposit boxes. The company was founded in 1903 and is headquartered in Pine Bluff, Arkansas.

About Fifth District Bancorp

Fifth District Bancorp, Inc. is the holding company for Fifth District Savings Bank which provide all banking services. Fifth District Bancorp, Inc. is based in NEW ORLEANS.