First Community Bankshares (NASDAQ:FCBC) and Spirit of Texas Bancshares (NASDAQ:STXB) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.
Risk & Volatility
First Community Bankshares has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Spirit of Texas Bancshares has a beta of -0.23, meaning that its stock price is 123% less volatile than the S&P 500.
Earnings & Valuation
This table compares First Community Bankshares and Spirit of Texas Bancshares’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First Community Bankshares||$124.74 million||4.19||$36.34 million||N/A||N/A|
|Spirit of Texas Bancshares||$67.83 million||4.52||$9.98 million||$1.05||21.18|
First Community Bankshares has higher revenue and earnings than Spirit of Texas Bancshares.
This is a breakdown of recent recommendations for First Community Bankshares and Spirit of Texas Bancshares, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First Community Bankshares||0||0||0||0||N/A|
|Spirit of Texas Bancshares||0||0||3||0||3.00|
Spirit of Texas Bancshares has a consensus target price of $22.21, suggesting a potential downside of 0.15%. Given Spirit of Texas Bancshares’ higher possible upside, analysts clearly believe Spirit of Texas Bancshares is more favorable than First Community Bankshares.
This table compares First Community Bankshares and Spirit of Texas Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First Community Bankshares||29.57%||11.11%||1.64%|
|Spirit of Texas Bancshares||15.80%||7.76%||1.06%|
Insider and Institutional Ownership
41.9% of First Community Bankshares shares are owned by institutional investors. Comparatively, 29.4% of Spirit of Texas Bancshares shares are owned by institutional investors. 3.4% of First Community Bankshares shares are owned by insiders. Comparatively, 15.0% of Spirit of Texas Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
First Community Bankshares pays an annual dividend of $1.00 per share and has a dividend yield of 3.0%. Spirit of Texas Bancshares does not pay a dividend. First Community Bankshares has raised its dividend for 7 consecutive years.
First Community Bankshares beats Spirit of Texas Bancshares on 9 of the 14 factors compared between the two stocks.
About First Community Bankshares
First Community Bankshares, Inc. operates as the financial holding company for First Community Bank that provides various banking products and services. It offers demand deposit accounts, savings and money market accounts, certificates of deposit, and individual retirement arrangements; commercial, consumer, and real estate mortgage loans, as well as lines of credit; various credit and debit cards, and automated teller machine card services; and corporate and personal trust services. The company also provides wealth management services, including trust management, estate administration, and investment advisory services; and investment management services. It serves individuals and businesses across various industries, such as education, government, and health services; coal mining and gas extraction; retail trade; construction; manufacturing; tourism; and transportation. As of December 31, 2018, the company operated 44 branches, including 19 branches in Virginia, 18 branches in West Virginia, 5 branches in North Carolina, and 2 branches in Tennessee. First Community Bankshares, Inc. was founded in 1874 and is headquartered in Bluefield, Virginia.
About Spirit of Texas Bancshares
Spirit of Texas Bancshares, Inc. operates as the holding company for Spirit of Texas Bank SSB that provides various commercial and retail banking services to small and medium-sized businesses and individuals. It offers checking accounts, money market accounts, savings accounts, certificates of deposit, and IRA accounts. The company also provides commercial and industrial loans; 1-4 single family residential real estate loans; construction, land, and development loans; commercial real estate loans, such as owner-occupied commercial real estate loans, other commercial real estate loans, and multifamily loans and farmland; consumer loans and leases; and municipal and other loans. In addition, it offers debit and credit cards, safe deposit boxes, wire transfer and treasury management services, and online banking services; and invests in U.S. Treasury bills and notes, as well as in securities of federally sponsored agencies, such as Federal Home Loan Bank bonds. The company operates through a network of 23 full-service branches located in the Houston, Dallas/Fort Worth, and Bryan/College Station metropolitan areas, as well as North Central Texas. Spirit of Texas Bancshares, Inc. was founded in 2008 and is headquartered in Conroe, Texas.
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