Financial Analysis: First Community (FCCO) & The Competition

First Community (NASDAQ: FCCO) is one of 199 publicly-traded companies in the “Commercial Banks” industry, but how does it contrast to its rivals? We will compare First Community to related businesses based on the strength of its profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Profitability

This table compares First Community and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
First Community 17.69% 8.44% 0.78%
First Community Competitors 20.45% 8.69% 0.93%

Risk and Volatility

First Community has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, First Community’s rivals have a beta of 0.75, suggesting that their average stock price is 25% less volatile than the S&P 500.

Valuation & Earnings

This table compares First Community and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
First Community $38.45 million $6.68 million 22.98
First Community Competitors $343.96 million $72.97 million 21.70

First Community’s rivals have higher revenue and earnings than First Community. First Community is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings for First Community and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Community 0 0 1 0 3.00
First Community Competitors 365 2892 2338 67 2.37

First Community currently has a consensus price target of $21.00, indicating a potential downside of 12.13%. As a group, “Commercial Banks” companies have a potential upside of 1.75%. Given First Community’s rivals higher possible upside, analysts clearly believe First Community has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

47.9% of First Community shares are owned by institutional investors. Comparatively, 47.3% of shares of all “Commercial Banks” companies are owned by institutional investors. 8.7% of First Community shares are owned by insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

First Community pays an annual dividend of $0.36 per share and has a dividend yield of 1.5%. First Community pays out 34.6% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.3% of their earnings in the form of a dividend.

Summary

First Community rivals beat First Community on 9 of the 15 factors compared.

About First Community

First Community Corporation is a bank holding company for First Community Bank (the Bank). The Bank offers commercial and retail banking services to small-to-medium sized businesses, professional concerns and individuals, primarily in Richland, Lexington, Kershaw and Newberry Counties of South Carolina and the surrounding areas. The Bank offers a range of traditional banking products and services for professionals and small-to medium-sized businesses, including consumer and commercial, mortgage, brokerage and investment, and insurance services. The Bank also offers online banking to its customers. Its other services include Internet banking, cash management services, safe deposit boxes, traveler checks, direct deposit of payroll and social security checks, and automatic drafts for various accounts. The Bank offers non-deposit investment products and other investment brokerage services through a registered representative with an affiliation through LPL Financial.

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