Unity Bancorp (UNTY) Competitors

Unity Bancorp (NASDAQ:UNTY) and First Business Financial Services (NASDAQ:FBIZ) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their community ranking, dividends, valuation, analyst recommendations, profitability, risk, media sentiment, earnings and institutional ownership.

Do analysts recommend UNTY or FBIZ?

Unity Bancorp currently has a consensus price target of $41.50, suggesting a potential downside of 7.63%. First Business Financial Services has a consensus price target of $50.00, suggesting a potential upside of 0.41%. Given First Business Financial Services' higher possible upside, analysts plainly believe First Business Financial Services is more favorable than Unity Bancorp.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Unity Bancorp	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	3.00
First Business Financial Services	0 Sell rating(s)	0 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	3.00

Is UNTY or FBIZ a better dividend stock?

Unity Bancorp pays an annual dividend of $0.52 per share and has a dividend yield of 1.2%. First Business Financial Services pays an annual dividend of $1.00 per share and has a dividend yield of 2.0%. Unity Bancorp pays out 13.4% of its earnings in the form of a dividend. First Business Financial Services pays out 21.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Unity Bancorp has raised its dividend for 11 consecutive years and First Business Financial Services has raised its dividend for 12 consecutive years. First Business Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has more risk & volatility, UNTY or FBIZ?

Unity Bancorp has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, First Business Financial Services has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Do institutionals & insiders have more ownership in UNTY or FBIZ?

42.3% of Unity Bancorp shares are held by institutional investors. Comparatively, 60.1% of First Business Financial Services shares are held by institutional investors. 28.9% of Unity Bancorp shares are held by company insiders. Comparatively, 6.2% of First Business Financial Services shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Does the MarketBeat Community favor UNTY or FBIZ?

First Business Financial Services received 87 more outperform votes than Unity Bancorp when rated by MarketBeat users. However, 64.09% of users gave Unity Bancorp an outperform vote while only 59.81% of users gave First Business Financial Services an outperform vote.

Company	Underperform	Outperform
Unity Bancorp	Outperform Votes 166 64.09%	Underperform Votes 93 35.91%
First Business Financial Services	Outperform Votes 253 59.81%	Underperform Votes 170 40.19%

Is UNTY or FBIZ more profitable?

Unity Bancorp has a net margin of 24.46% compared to First Business Financial Services' net margin of 15.46%. Unity Bancorp's return on equity of 14.63% beat First Business Financial Services' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Unity Bancorp	24.46%	14.63%	1.53%
First Business Financial Services	15.46%	13.70%	1.10%

Does the media favor UNTY or FBIZ?

In the previous week, First Business Financial Services had 1 more articles in the media than Unity Bancorp. MarketBeat recorded 2 mentions for First Business Financial Services and 1 mentions for Unity Bancorp. First Business Financial Services' average media sentiment score of 1.87 beat Unity Bancorp's score of 0.59 indicating that First Business Financial Services is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Unity Bancorp	0 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
First Business Financial Services	2 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive

Which has stronger valuation & earnings, UNTY or FBIZ?

Unity Bancorp has higher earnings, but lower revenue than First Business Financial Services. First Business Financial Services is trading at a lower price-to-earnings ratio than Unity Bancorp, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Unity Bancorp	$151.64M	2.96	$39.71M	$3.89	11.55
First Business Financial Services	$226.24M	1.83	$37.03M	$4.66	10.69

Summary

Unity Bancorp and First Business Financial Services tied by winning 10 of the 20 factors compared between the two stocks.