Comparing First Bancshares (NASDAQ:FBMS) & Bay National (OTCMKTS:BAYN)

Bay National (OTCMKTS:BAYN) and First Bancshares (NASDAQ:FBMS) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Risk & Volatility

Bay National has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, First Bancshares has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Insider & Institutional Ownership

69.9% of First Bancshares shares are held by institutional investors. 17.8% of Bay National shares are held by company insiders. Comparatively, 3.5% of First Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Bay National and First Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bay National	N/A	N/A	N/A	N/A	N/A
First Bancshares	$267.28 million	4.24	$75.46 million	$2.21	16.45

First Bancshares has higher revenue and earnings than Bay National.

Analyst Recommendations

This is a breakdown of recent recommendations for Bay National and First Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bay National	0	0	0	0	0.00
First Bancshares	0	2	2	0	2.50

First Bancshares has a consensus target price of $37.17, suggesting a potential upside of 2.25%. Given First Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe First Bancshares is more favorable than Bay National.

Profitability

This table compares Bay National and First Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bay National	N/A	N/A	N/A
First Bancshares	17.25%	8.19%	1.00%

Summary

First Bancshares beats Bay National on 8 of the 10 factors compared between the two stocks.

About Bay National

Bay National Corp. operates as a bank holding company. It offers loans, deposits, investments and other banking and financial services through its subsidiary, Bay National Bank. The company was founded in 1999 and is headquartered in Lutherville, MD.

About First Bancshares

The First Bancshares, Inc. operates as the bank holding company for The First Bank that provides general commercial and retail banking services. The company operates through three segments: Commercial/Retail Bank, Mortgage Banking Division, and Holding Company. It offers deposit services, including checking, NOW, and savings accounts; other time deposits, such as daily money market accounts and longer-term certificates of deposit; and individual retirement and health savings accounts. The company also provides commercial loans comprising secured and unsecured loans for working capital, business expansion, and purchase of equipment and machinery; consumer loans consisting of equity lines of credit, as well as secured and unsecured loans for financing automobiles, home improvements, education, and personal investments; and real estate construction and acquisition loans. In addition, it originates loans to purchase existing residential homes, construct new homes, and to refinance existing mortgages; and provides financial and wealth management services. Further, the company offers online internet banking services, automated teller machines, voice response telephone inquiry services, commercial sweep accounts, cash management services, safe deposit boxes, merchant services, mobile deposit, direct deposit of payroll and social security checks, automatic drafts for various accounts, and credit card services. It serves small to medium-sized businesses, professional concerns, individuals, associations, organizations, and governmental authorities. The company operates full-service banking and financial service offices, motor bank facility, and loan production offices in Mississippi, Alabama, Florida, Georgia, and Louisiana. The First Bancshares, Inc. was incorporated in 1995 and is headquartered in Hattiesburg, Mississippi.