Head-To-Head Review: First Republic Bank (OTCMKTS:FRCB) vs. VersaBank (NASDAQ:VBNK)

VersaBank (NASDAQ:VBNK) and First Republic Bank (OTCMKTS:FRCB) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for VersaBank and First Republic Bank, as provided by MarketBeat.com.

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

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

Insider & Institutional Ownership

56.9% of VersaBank shares are owned by institutional investors. Comparatively, 0.0% of First Republic Bank shares are owned by institutional investors. 5.3% of VersaBank shares are owned by insiders. Comparatively, 0.7% of First Republic Bank shares 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.

Profitability

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

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

Risk and Volatility

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

Valuation & Earnings

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

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

First Republic Bank has higher revenue and earnings than VersaBank.

Summary

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

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.

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.