Amalgamated Financial (NASDAQ:AMAL – Get Rating) and First Busey (NASDAQ:BUSE – Get Rating) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.
Volatility and Risk
Amalgamated Financial has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, First Busey has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.
Get Amalgamated Financial alerts:Dividends
Amalgamated Financial pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. First Busey pays an annual dividend of $0.96 per share and has a dividend yield of 4.0%. Amalgamated Financial pays out 15.3% of its earnings in the form of a dividend. First Busey pays out 41.9% 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. Amalgamated Financial has raised its dividend for 1 consecutive years and First Busey has raised its dividend for 1 consecutive years.
Insider & Institutional Ownership
49.0% of Amalgamated Financial shares are held by institutional investors. Comparatively, 50.0% of First Busey shares are held by institutional investors. 2.1% of Amalgamated Financial shares are held by insiders. Comparatively, 7.4% of First Busey shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Amalgamated Financial and First Busey's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Amalgamated Financial | 28.85% | 16.72% | 1.08% |
| First Busey | 26.36% | 11.39% | 1.06% |
Earnings and Valuation
This table compares Amalgamated Financial and First Busey's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amalgamated Financial | $282.39 million | 2.53 | $81.48 million | $2.62 | 8.90 |
| First Busey | $486.79 million | 2.76 | $128.31 million | $2.29 | 10.61 |
First Busey has higher revenue and earnings than Amalgamated Financial. Amalgamated Financial is trading at a lower price-to-earnings ratio than First Busey, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for Amalgamated Financial and First Busey, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amalgamated Financial | 0 | 1 | 2 | 0 | 2.67 |
| First Busey | 0 | 1 | 1 | 0 | 2.50 |
Amalgamated Financial presently has a consensus target price of $27.00, indicating a potential upside of 15.78%. First Busey has a consensus target price of $24.67, indicating a potential upside of 1.51%. Given Amalgamated Financial's stronger consensus rating and higher probable upside, research analysts clearly believe Amalgamated Financial is more favorable than First Busey.
About Amalgamated Financial
(Get Rating)
Amalgamated Financial Corp. operates as a holding company for Amalgamated Bank. It offers commercial and retail banking, investment management, and trust custody segments. The company was founded in 1923 and is headquartered in New York, NY.
About First Busey
(Get Rating)
First Busey Corp. is a bank holding company, which engages in the provision of financial services through its wholly-owned bank subsidiary. It operates through the following segments: Banking, Remittance Processing, and Wealth Management. The Banking segment offers a range of services to individual and corporate customers through its banking center network. The Remittance Processing segment provides solutions for online bill payments, lockbox, and walk-in payments. The Wealth Management segment includes full range of asset management, investment, and fiduciary services to individuals, businesses, and foundations, tax preparation, philanthropic advisory, and farm and brokerage services.. The company was founded by Samuel Busey, Simeon Busey, and William Earhart in 1868 and is headquartered in Champaign, IL.
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