First Community Bancshares (NASDAQ: FCBC) and National Commerce (NASDAQ:NCOM) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.
This table compares First Community Bancshares and National Commerce’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Community Bancshares||22.32%||7.67%||1.11%|
This is a breakdown of recent ratings for First Community Bancshares and National Commerce, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Community Bancshares||0||1||0||0||2.00|
First Community Bancshares currently has a consensus price target of $27.00, indicating a potential downside of 8.78%. National Commerce has a consensus price target of $43.67, indicating a potential upside of 3.48%. Given National Commerce’s higher possible upside, analysts clearly believe National Commerce is more favorable than First Community Bancshares.
Institutional & Insider Ownership
40.5% of First Community Bancshares shares are owned by institutional investors. Comparatively, 47.9% of National Commerce shares are owned by institutional investors. 3.3% of First Community Bancshares shares are owned by insiders. Comparatively, 19.4% of National Commerce shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
First Community Bancshares has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, National Commerce has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.
Valuation & Earnings
This table compares First Community Bancshares and National Commerce’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First Community Bancshares||$121.79 million||4.13||$25.12 million||$1.57||18.85|
|National Commerce||$88.52 million||7.05||$17.85 million||$1.83||23.06|
First Community Bancshares has higher revenue and earnings than National Commerce. First Community Bancshares is trading at a lower price-to-earnings ratio than National Commerce, indicating that it is currently the more affordable of the two stocks.
First Community Bancshares pays an annual dividend of $0.72 per share and has a dividend yield of 2.4%. National Commerce does not pay a dividend. First Community Bancshares pays out 45.9% of its earnings in the form of a dividend.
National Commerce beats First Community Bancshares on 8 of the 14 factors compared between the two stocks.
First Community Bancshares Company Profile
First Community Bancshares, Inc. is a financial holding company. The Company provides commercial banking products and services through its subsidiary First Community Bank (the Bank). The Bank operates as First Community Bank in Virginia, West Virginia, and North Carolina and People’s Community Bank, a Division of First Community Bank, in Tennessee. It provides insurance services through its subsidiary First Community Insurance Services, and offers wealth management and investment advice through its Trust Division and subsidiary First Community Wealth Management. Its products include demand deposit accounts, savings and money market accounts, certificates of deposit, and individual retirement arrangements; commercial, consumer, and real estate mortgage loans and lines of credit; various credit card, debit card, and automated teller machine card services; corporate and personal trust services; investment management services, and life, health, and property and casualty insurance products.
National Commerce Company Profile
National Commerce Corporation (NCC) is a financial holding company. The Company is engaged in the business of banking through its banking subsidiary, National Bank of Commerce (the Bank). The Company, through the Bank, provides a range of financial services to businesses, business owners and professionals. It holds interest in CBI Holding Company, LLC, which owns Corporate Billing, LLC, a transaction-based finance company that provides factoring, invoicing, collection and accounts receivable management services to transportation companies, and automotive parts and service providers across the United States and Canada. Its loan portfolio includes construction, land development and other land loans; loans secured by farmland; loans secured by one- to four-family residential properties; loans secured by multifamily residential properties; loans secured by nonfarm nonresidential properties; loans secured by real estate; commercial and industrial loans; consumer loans, and other loans.
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