Analyzing Primis Financial (NASDAQ:FRST) & Alerus Financial (NASDAQ:ALRS)

Primis Financial (NASDAQ:FRST – Get Free Report) and Alerus Financial (NASDAQ:ALRS – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Institutional & Insider Ownership

75.0% of Primis Financial shares are owned by institutional investors. Comparatively, 51.3% of Alerus Financial shares are owned by institutional investors. 11.0% of Primis Financial shares are owned by company insiders. Comparatively, 4.2% of Alerus Financial shares are owned 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.

Dividends

Primis Financial pays an annual dividend of $0.40 per share and has a dividend yield of 3.1%. Alerus Financial pays an annual dividend of $0.84 per share and has a dividend yield of 3.7%. Primis Financial pays out 285.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alerus Financial pays out 40.4% of its earnings in the form of a dividend. Alerus Financial has raised its dividend for 25 consecutive years. Alerus Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Primis Financial and Alerus Financial’s net margins, return on equity and return on assets.

Valuation and Earnings

This table compares Primis Financial and Alerus Financial”s gross revenue, earnings per share (EPS) and valuation.

Alerus Financial has higher revenue and earnings than Primis Financial. Alerus Financial is trading at a lower price-to-earnings ratio than Primis Financial, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Primis Financial and Alerus Financial, as reported by MarketBeat.com.

Primis Financial presently has a consensus target price of $1.00, suggesting a potential downside of 92.34%. Alerus Financial has a consensus target price of $25.00, suggesting a potential upside of 11.36%. Given Alerus Financial’s higher probable upside, analysts clearly believe Alerus Financial is more favorable than Primis Financial.

Volatility and Risk

Primis Financial has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Alerus Financial has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Summary

Alerus Financial beats Primis Financial on 11 of the 16 factors compared between the two stocks.

About Primis Financial

(Get Free Report)

Primis Financial Corp. operates as the bank holding company for Primis Bank that provides a range of financial services to individuals and small and medium sized businesses in the United States. Its deposit products include checking, NOW, savings, and money market accounts, as well as certificates of deposits. The company also provides commercial business and real estate, construction, secured asset based, small business administration, mortgage warehouse lending products, as well as financing for medical, dental, and veterinary businesses; residential mortgage, trust mortgage, home equity lines of credit, secured and unsecured personal, and consumer loans, as well as life insurance premium financing and demand loans. It also offers cash management services comprising investment/sweep, zero balance, and controlled disbursement accounts; and wire transfer, employer/payroll processing, night depository, depository transfer, merchant, ACH origination, and remote deposit capture services. In addition, the company provides debit cards, ATM services, notary services, and mobile and online banking. It operates full-service branches in Virginia and Maryland. The company was formerly known as Southern National Bancorp of Virginia, Inc. and changed its name to Primis Financial Corp. Primis Financial Corp. was founded in 2004 and is based in McLean, Virginia.

About Alerus Financial

(Get Free Report)

Alerus Financial Corporation operates as the bank holding company for Alerus Financial, National Association that engages in the provision of various financial services to businesses and consumers. The company operates in four segments: Banking, Mortgage, Retirement and Benefit Services, and Wealth Management. It offers various deposit products, including demand deposits, interest-bearing transaction accounts, money market accounts, time and savings deposits, checking accounts, and certificates of deposit; and treasury management products, including electronic receivables management, remote deposit capture, cash vault services, merchant services, and other cash management services. The company also provides commercial loans, business term loans, lines of credit, and commercial real estate loans, as well as construction and land development loans; consumer lending products, including residential first mortgage loans; installment loans and lines of credit; and second mortgage loans. In addition, it offers retirement plan administration and investment advisory services, employee stock ownership plan, fiduciary services, payroll, health savings accounts, and other benefit services, as well as individual retirement accounts; and financial planning, investment management, personal and corporate trust, estate administration, and custody services. Further, the company provides debit and credit cards, online banking, mobile banking/wallet, payment, private banking, payroll accounts, flex spending accounts, administration, and government health insurance program services. It offers banking services in North Dakota, Minnesota, and Arizona; and retirement and benefit plans through offices located in Michigan, Minnesota, and Colorado. The company was formerly known as First National Bank North Dakota and changed its name to Alerus Financial Corporation in 2000. Alerus Financial Corporation was founded in 1879 and is headquartered in Grand Forks, North Dakota.