First Republic Bank (OTCMKTS:FRCB) and VersaBank (NASDAQ:VBNK) Head-To-Head Analysis

First Republic Bank (OTCMKTS:FRCB) and VersaBank (NASDAQ:VBNK) 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, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Earnings & Valuation

This table compares First Republic Bank and VersaBank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Republic Bank	$6.75 billion	0.00	$1.67 billion	N/A	N/A
VersaBank	$113.52 million	4.11	$31.26 million	$1.30	13.80

First Republic Bank has higher revenue and earnings than VersaBank.

Volatility and Risk

First Republic Bank has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, VersaBank has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for First Republic Bank and VersaBank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Republic Bank	0	0	0	0	0.00
VersaBank	0	0	3	1	3.25

VersaBank has a consensus price target of $19.00, suggesting a potential upside of 5.91%. Given VersaBank’s stronger consensus rating and higher probable upside, analysts plainly believe VersaBank is more favorable than First Republic Bank.

Insider and Institutional Ownership

0.0% of First Republic Bank shares are owned by institutional investors. Comparatively, 56.9% of VersaBank shares are owned by institutional investors. 0.7% of First Republic Bank shares are owned by insiders. Comparatively, 5.3% of VersaBank shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares First Republic Bank and VersaBank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Republic Bank	N/A	N/A	N/A
VersaBank	16.24%	11.85%	1.07%

Summary

VersaBank beats First Republic Bank on 10 of the 13 factors compared between the two stocks.

About First Republic Bank

As of May 1, 2023, First Republic Bank went out of business. Previously, First Republic Bank provided private banking, private business banking, and private wealth management services to clients in metropolitan areas in the United States. The company was founded in 1985 and was headquartered in San Francisco, California. First Republic Bank now trades on OTCPK.

About VersaBank

VersaBank provides various banking products and services in Canada and the United States. It offers deposit products, such as web-based chequing accounts, guaranteed investment certificates, registered retirement savings plans, and tax-free savings accounts, as well as deposit insurance products. The company also provides lending services, including point of sale financing that covers purchasing loan and lease receivables from finance companies operating in various industries; commercial banking services comprising commercial real estate, public sector/infrastructure financing, and condominium financing; and residential mortgages. In addition, it offers cybersecurity services. The company was formerly known as Pacific & Western Bank of Canada and changed its name to VersaBank in May 2016. VersaBank was incorporated in 1979 and is headquartered in London, Canada.